Take the frugality test by answering these cheapness questions to see for yourself:
What’s the difference between frugality and cheapness?
Cheap people use cost as their bottom line. You’re cheap if you don’t look beyond nickels and dimes. Frugal or thrifty folk seek value when spending money and often choose to spend more when an item’s quality and longevity are important.
For example, remember when I declared my $783 unlocked iPhone a ringin’ deal? Before locking myself into an inflexible cell contract with a subsidized $213 phone I did the math.
I compared cell phone plans in a spreadsheet and found that paying $783 outright for my iPhone and going on a prepaid plan would save me at least $1,760 in the long term. Paying more upfront to save significantly over three years was my frugal choice. The math doesn’t lie.
How about that $700 Canada Goose puffy parka? Many commented that $700 was far too much to spend, and a comparable winter coat without the big brand name could keep a shivering mammal warm for significantly less money. That’s a fair argument, sure. But what about the people who stand by the costly coat because of the Canadian-made quality, the durable fabrication, and the fact that they’ve worn their Canada Goose parkas for years? These coats ain’t cheap, but are they frugal? This scenario is harder to quantify since it depends a little more on personal choice.
So I ask you: How do you define frugality and cheapness? What’s your bottom line? And would you flip your underwear inside out to save money? Ugh.