So yesterdays post, Want vs Need, I talked about how there is a big difference between a want and a need. This is something we all know already. However, I feel like I received quite a few comments on how if you only bought what you needed, then you wouldn’t be able to have any fun with the things that you want.
So here we go…cheap vs frugal. I’ve been reading I will teach you to be rich (and still am) and in that book, Ramit Sethi talks about how there is a difference between being frugal and being cheap. To most of us, both carry a very negative connotation. How can you be frugal, yet be accepted?
Referring back to yesterdays post again, the point of determining between a want and a need is to keep you from buying stuff that will just clutter up your house. Things that you will never use. The point of being frugal (the good) vs being cheap (the bad) is that you spend money on what you brings you the most joy and cut your spending on the things that don’t bring you joy.
If you enjoy eating out, then pay to eat out. There’s nothing wrong with it, as long as it fits within your budget. In other words, don’t go into debt or quit your saving and investing so you can go out to eat. (Always pay yourself first). There’s nothing wrong with getting water instead of a Coke at the restaurant if you are consciously thinking, “I’d rather spend that $2 somewhere else, like on a book that I’ve been looking forward to reading.”
Being cheap is not spending money on anything and judging everybody else for spending money on something that YOU see as being excessive. Think of friends who like to go out to eat. Friends who have a nice computer. Family who travels a lot? Be realistic and realize that the average family does not make enough to do EVERYTHING. Some people learn this lesson early in life and tend to cut back mercilessly on things they don’t get much out of and choose to spend excessively (when compared to others) on things they do love. You’ll find friends who never go out to eat, yet enjoy the nicest computer setup you’ve seen. You’ll meet family members who live in a small house, but find a way to travel 4 times a year to exotic places. The choice is yours. Don’t let what others are doing determine what makes you happy. Focus on the things and experiences that make you happy.
The underlying point to this jumbled mess of a post is simply this: Spend money on what you LOVE. Cut spending on what you don’t love. Enjoy life more.
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