People Who Seem Cheap But Are Actually Just Smart With Their Money Do 11 Things Differently
insta_photos | Shutterstock Nearly one-third of all American households struggle with basic expenses like rent, groceries, and utilities each month, all due to rising costs, inaccessible financial support, and job instability. This kind of economic struggle, along with multiple jobs and living below their means, causes many families to rely on money-saving techniques to make ends meet, even while living paycheck to paycheck.
People who seem cheap but are actually just smart with their money do certain things differently that not only help them save up for important purchases, but become more mindful about where their income goes. They’re brilliantly frugal, even amid their financial hardship, sticking to methods that help them invest into savings accounts and emergency funds.
People who seem cheap but are actually just smart with their money do 11 things differently
1. They focus on small details
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People who seem cheap but are actually just smart with their money tend to pay very close attention to small details, understanding that little things add up to significant savings. While they may not pinch pennies, they're still aware of how things like returns, coupons, or utility savers can make a significant financial difference in the long run.
Not only do these kinds of people tend to be more conscious of small financial opportunities, they’re also much more self-aware about the value of life’s small moments. Some people even argue that simply using coupons, taking advantage of stockpiling opportunities, and getting refunds can save more than 40% on every grocery trip.
2. They plan and stick to long-term financial goals
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When people are smart with their money, they carefully plan long-term financial goals, ensuring their future is secure and stress-free. According to experts at Merrill, having a long-term financial plan, complete with fleshed-out goals and a big-picture view of the future, not only boosts confidence in everyday spending, but also helps reassure individuals in the event of a financial crisis or volatility.
Financially intelligent people take the time to plan these details of their lives, knowing when they have to cut back and when they can make a more significant purchase. While cheap people might not spend money at all, cutting corners and taking advantage of others to pinch pennies, people who are smart about their spending tend to save for responsible and fun expenses.
3. They wait patiently before big purchases
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People who are smart with their money are patient and willing to wait before making big purchases, prioritizing thoughtfulness over impulsiveness. Unlike many consumers influenced by the impulsivity of social media and advertising messaging, frugal people don’t mind waiting for their “right moment” before making a purchase or investing in something more significant.
While impulse consumers may be influenced by psychological triggers that urge them to seek out the fulfillment of a purchase, people who are smart about saving money operate on the other end of the spectrum. They're waiting, planning, and making informed decisions that may give them peace of mind or ease their anxiety about large investments.
4. They embrace old-school money habits
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Financially smart people embrace traditional or old-school habits that promote intelligent money management. From sewing their clothes to tending gardens with fresh produce and “DIY-ing” gifts, their tendency to adopt generational old-school hobbies and habits actually saves money. Not only are these habits informed by their grandparents or older family members, but they are habitual, becoming a part of their identity.
On an even more basic level, young adults who speak about money and learn financial literacy from their parents are more likely to have a budget, savings account, and emergency fund than their peers. Part of this explains why class status and financial stability are generational, as people learn how to be financially stable and responsible from their parents, sometimes in an unproductive way.
5. They track their finances closely
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People who are very smart with their money and spending tend to track their finances very closely. They're consistently balancing their checkbooks or monitoring online banking. Unfortunately, many unsuspecting money mistakes cause people to lose hundreds, if not thousands of dollars yearly. One of the most important is knowing what’s coming in and out of their bank accounts.
Genuinely frugal people are aware of this and know every purchase coming out of their accounts. Helpful for sticking to a budget, like experts from Chase Bank argue, monitoring accounts can also help you to pick up on fraudulent charges, overdue “free” trials, and unnecessary overspending.
6. They automate savings into multiple accounts
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When they automate savings by sending money to different accounts, people who seem cheap are making very smart financial decisions, staying on track with their goals. Whether it’s an emergency fund or a high-yield savings account, they acknowledge the benefits of having financial security, even amid a crisis. If they have the means, they immediately send part of their income to another (usually untouchable) account that grows without intervention.
Instead of trying to budget out savings every month, on top of millions of expenses and bills, their income or direct deposit is automatically linked to this separate account. This allows them to budget with what they have left without sacrificing their savings or considering that extra money.
7. They choose quality over quantity every time
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These people value quality over quantity, investing in durable and reliable products to save money in the long run. For things like shoes, sheets, clothing, or a car, they people don’t mind investing in quality. While they might be more expensive to purchase, they’re saving money because they won’t need to be replaced as frequently as a lesser-quality item will.
Even for larger purchases like furniture, which many cheap people may be more inclined to purchase at a cost-effective sale price, financially brilliant people can acknowledge that quality investments are better for their long-term financial goals.
8. They compare prices before buying anything
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People who are smart with their money do many things differently, especially comparing prices while shopping, using price-matching to maximize their savings without compromising quality. While they're still committed to finding the best price on larger investments, they tend to save money by price matching at stores.
Getting the lowest price without having to travel to multiple stores, they leverage the convenience of technological accessibility to save. Although the habit is relatively uncomfortable and uncommon among younger consumers, it's much easier than perceived, even at more prominent, more popular stores like Target and Walmart.
9. They live comfortably below their means
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These people are comfortable living below their means, prioritizing needs over unnecessary luxuries. Living below your means just means spending less than you make on purchases, bills, and general expenses. If you can save money consistently over the year without living paycheck to paycheck, you’re living somewhat below your means.
As experts from Capital One suggest, living below your means doesn’t always mean you have to be uncomfortable with proper financial spending habits. By investing in knowledge of your spending triggers, habits, and goals, and doing some preliminary budgeting and planning, you can work towards saving money every month while still meeting all your financial responsibilities.
10. They pay off credit cards in a timely manner
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While some may find it impossible, people who are smart with their money, and not cheap like others might think, pay off their credit card balances in full every month to avoid interest and maintain financial freedom. Paying off credit cards every month isn’t necessarily feasible for every individual, but because they have the means to budget, they make it a priority to do so.
As the Consumer Financial Protection Bureau pointed out, paying off your credit cards in full every month can drastically help improve your credit score. This is something long-term financial planners know will make a huge difference in their more significant investments and purchases.
11. They avoid unnecessary subscriptions
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By carefully evaluating subscription services, financially intelligent people are avoiding unnecessary commitments that drain their budget. While they aren’t constantly warding off subscription streaming services or the occasional clothing rental, they're more aware of the summation of these purchases than the average person.
The average consumer spends around $1,000 per year on subscriptions alone, despite only using most of them occasionally. Unlike cheap people, who tend to be criticized for being too constrictive with their spending and manipulative toward others for their own financial gain, these individuals note additional spending habits and figure out clever ways to compensate for them.
Zayda Slabbekoorn is a senior editorial strategist with a bachelor's degree in social relations & policy and gender studies who focuses on psychology, relationships, self-help, and human interest stories.
