Frugality is a virtue. It’s about spending your money thoughtfully. Not wasting it. Spending it carefully on the things and people you truly value.
Warren Buffett has a saying:
“Price is what you pay. Value is what you get.”
Frugal people get a lot of value for a very reasonable price.
Note the word reasonable.
What if you get a lot of value for an unreasonably low price? Perhaps by freeloading off a friend or taking advantage of a situation. That’s not frugal. That’s cheap.
What if you get very little value for a very low price? Perhaps by purchasing extremely low quality items or experiences. That’s not frugal. That’s cheap.
What if you get no value by refusing to pay any price? Perhaps by denying yourself any of life’s pleasures. That’s not frugal. That’s cheap.
Not sure where to draw the line between frugal and cheap? Take the fun test here.
Being frugal is a virtue. Being cheap is not. Teach your kids the difference.
Get tomorrow’s tip here.