Do you pride yourself on being frugal? Not so fast, there’s a fine line between being frugal and being an outright cheapskate. To me, frugal can be a positive approach to managing your finances. A frugal saver understands, “more” doesn’t always add up to better value. Their primary goal leads them to maximize spending power for things they value while at the same time knowing it may be necessary to pay more for a product of higher quality.
A person who is “cheap” on the other hand, struggles to spend at all and would never agree to pay a premium price regardless of its value. This type of thinking can lead to an adverse effect on their long-term finances as well as their lives. They tend to deprive themselves unnecessarily and are willing to sacrifice quality and value for short-term savings. This may lead to a very narrow view of life and their financial future.
Depending on which side you fall on, the one who is frugal vs. cheap can make an enormous difference in your finances and your life. Don’t fret if you find yourself on the cheap side. Just try to understand that paying less and not seeing the entire picture may lead to more painful consequences down the road. Some things are worth the expense. Like regular health checkups, proper maintenance of your home, quality education and other prized possessions. You can save, control your spending, and at the same time open you purse and release your fears of financial failure. And you begin – by recognizing the value in quality for the important matters of your life.
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