The Real Difference Between Frugal and Cheap (And Why It Matters)
🕐 Read Time 6 Minutes
Key Takeaways
Free and low-cost resources are not “less than” and can improve other areas of your financial life.
Being frugal means spending intentionally on what matters to you, while being cheap means sacrificing quality and relationships to save every penny.
Rewriting the story you tell yourself about saving allows you to make empowered decisions instead of reactive ones.
If you’ve ever felt a little tension between wanting to save money and not wanting to feel like you’re depriving yourself, you’re in good company. Many people wrestle with this. We want to be intentional with our money, but we also don’t want to be the person who waters down the hand soap or drives across town to save thirty-seven cents on cereal.
There’s a real difference between being frugal and being cheap, and knowing it can change how you spend and how you feel about it. Your financial habits should feel good.
Let’s look at what frugality and cheapness really mean, and how our views on “free” things reflect our relationship with money.
The Difference Between Frugal and Cheap
Being frugal means being intentional. You choose where your money goes based on your values. You say yes to what matters and no to what doesn’t. Frugal people spend with care, not out of fear.
Being cheap is avoiding spending, no matter what. Financial experts say it often stems from fear. It’s acting out of scarcity but calling it responsibility. It’s skipping your best friend’s wedding gift and framing it as smart budgeting.
Frugal choices focus on long-term value. Cheap choices focus only on the lowest price now, even if it costs more in the end.
Here’s a quick comparison that might hit home:
Frugal: Buying the higher-quality winter coat that lasts you ten years.
Cheap: Buying the clearance coat that sheds feathers like a molting goose after three wears.
Frugal: Cooking at home because it supports your health and your money goals.
Cheap: Not tipping your server because you’re “saving.”
Frugal: Using the free fitness class at your local community center because it works for your schedule and leaves room in your budget for something else you value.
Cheap: Not replacing your worn-out workout shoes even though you have shin splints.
The difference is intention versus avoidance.
Rewriting Your Story About Free Stuff
Let’s talk about your relationship with things that are free. Do you secretly look down on free events, free tools, free opportunities, or free resources because they don’t feel as shiny as the paid version? You’re not the only one.
Many people think free means low quality. But free can be a smart choice. It gives you more room in your budget for things you really care about.
For example, if you use the free budgeting templates on our site, like the Save More, Spend Less download, you’re not being cheap. You’re being smart by using a free resource to save money for what matters most.
Or if your town hosts a free summer concert series, attending doesn’t make you cheap. It shows you know how to enjoy life without swiping your card at every turn.
Here’s a personal favorite example. One of my clients avoided free networking events for years because she thought they were “low quality.” The irony is that her biggest career breakthrough came from a free workshop hosted by a women-in-business group. She met a mentor who eventually connected her to a contract that doubled her revenue. Zero entry fee. Maximum return.
Sometimes free is not a downgrade. Sometimes it’s a strategic upgrade.
Money Saving Strategies
Now let's talk about practical strategies:
Strategy #1: Cost Per Use Calculation
Instead of just looking at price tags, start thinking about cost per use. That $200 winter coat you'll wear 100 times over five years? That's $2 per wear. The $30 trendy jacket you'll wear twice? That's $15 per wear. Suddenly, the expensive option is the frugal choice. This strategy alone will revolutionize how you shop.
Strategy #2: The Power of Good Enough
Not everything needs to be top-of-the-line, but not everything should be bottom-barrel either. Your mattress, your work shoes, your coffee maker? Invest there. The decorative bowl that holds your keys? The dollar store version works just fine. Learning to distinguish between these categories is pure gold.
Strategy #3: Automate Your Savings
The best money-saving strategy is the one you don't have to think about. Set up automatic transfers to your savings account right after payday.
Strategy #4: The 24-Hour Rule for Non-Essentials
If you want to buy something, wait 24 hours before buying it. If you still want it tomorrow, go for it. This simple pause prevents impulse purchases without feeling restrictive. It's not about deprivation; it's about aligning your spending with what you actually value.
Strategy #5: Use Comparison Shopping With Intention
You don’t need to spend hours comparison shopping for mouthwash, but spending this time comparing prices for automobiles, vacations, or home furnishings is a power move.
Frugal Living Tips
Here's a fun exercise: list five free resources you currently use and how they elevate your life. Maybe it's free concerts in the park, free online courses, free professional networking events, or free community fitness classes. Now imagine you had to pay fair market value for all of those. How much money did being open to "free" just save you this year? Probably thousands.
A frugal mindset creates freedom. A scarcity-driven mindset creates exhaustion.
Here are some practical frugal living tips:
Cook at home and do meal prep. According to the U.S. Bureau of Labor Statistics, Americans spend around $3,200 per year eating out. Spending a few hours each week on meal prep can dramatically reduce food waste and takeout temptation.
Use free resources. Beyond books, many libraries offer free passes to local museums and attractions, tool lending programs (why buy a power drill you'll use twice?), and skill-building classes. Your local parks department likely hosts free fitness classes, and community colleges often have low-cost continuing education courses that rival expensive online programs.
Buy used or secondhand. Shopping at thrift stores, consignment shops, and Facebook Marketplace offers incredible deals on everything from clothes to furniture.
Notice what you’re paying for out of convenience. Review the things you pay for to avoid minor inconvenience, like food delivery fees, rush shipping, or premium apps. Keep the ones that truly reduce stress. Cut the ones you barely notice.
Downgrade before you eliminate. Before cutting a service entirely, see if a lower-cost version meets your needs. Reducing spend without removing something you enjoy often leads to better follow-through.
The key to being open to free or less expensive options isn't about limitation. It's about liberation. It's about having more choices, not fewer. When you're not spending money in one area, you're creating breathing room in another.
Are You Ready to Rewrite Your Money Story?
If you’re reading this and thinking, “Okay… maybe I’ve been calling frugal things cheap and cheap things frugal,” that awareness matters. Money habits are emotional. They’re shaped by childhood, culture, relationships, and the stories we tell ourselves about what we “should” be doing.
If you want support creating spending habits that feel aligned with your values (and yes, still leave room for fun), Financial Fitness Coaching can help. Together, we can unpack the beliefs that are holding you back, build a plan that feels good, and help you rewrite your money story in a way that supports both your present and your future.
Reach out today to schedule a discovery call. We would love to talk with you and explore what a values-aligned, joyful, and genuinely sustainable money life can look like for you.
Frequently Asked Questions (FAQs)
Q: Is being frugal the same as being cheap?
A: No, being frugal is about thoughtful, values-aligned spending, while being cheap is avoiding spending altogether, even when it harms your wellbeing or relationships.
Q: Do free resources actually help, or are they just low-quality alternatives?
A: Many free resources provide real value and can create financial breathing room, especially when they support your goals or reduce unnecessary spending.
Q: How do I stop feeling embarrassed about using free resources?
A: Reframe it: free doesn't mean inferior, it means strategic. Using your library card or attending free community events shows you're smart enough to recognize value.