5 Quiet Ways Frugal People Make Their Lives Feel Rich That Cheap People Haven’t Quite Mastered
It's all about your mindset.
Ahtziri Lagarde | Unsplash Many people may not see a difference between being cheap and being frugal, but there are a few ways frugal people make their lives feel rich that cheap people haven't quiet mastered. CEO of The Financial Diet, Chelsea Fagan, explained, "Cheapness is really a completely separate concept from frugality. Often, those two things are conflated, especially when people are trying to get good with money. But I think that’s ultimately to our detriment."
The main difference comes from your mindset. Fagan said that being cheap is having the mentality of existing in scarcity. Cheap people refuse to invest in better-quality items because they only want to pay the smallest amount possible, even when they have the money to spend.
Frugal people, on the other hand, are conscious about their spending, but also make the most financially smart decisions whenever possible. They invest in items that may cost a little more up front, but will last much longer than a cheaper alternative. It's about finding abundance in things they already have, and all it takes to become frugal is a simple mindset shift.
1. Being content with what they have
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Frugal people are able to find satisfaction in what they already have. They don't need to follow trends, or get the latest upgrade, or constantly find validation in material items. Instead, they focus on improving their well-being and inner peace, allowing them to find joy while having less.
Cheap people feel that they need to deprive themselves in the name of saving money. Their scarcity mindset causes anger and resentment, often making them obsess over things they can't have, rather than appreciating what they do have.
“A scarcity mindset is a belief system in which a person consistently feels there is never enough of a key resource,” Megan McCoy, PhD, LMFT, a certified financial therapist and assistant professor of personal financial planning at Kansas State University, told WonderMind. Cheapness revolves around withholding, while frugality emphasizes gratitude.
2. Getting things they want without overspending
One of the things frugal people do best is shopping. They're masters at finding the best deals and sales, and are happy to purchase items like clothes, furniture, and electronics secondhand. They may be regulars at their local thrift shops, and they can DIY almost anything.
Meanwhile, cheap people purchase things at the lowest price possible, regardless of quality. They may buy things they don't even like just because they're cheap. Or, they might be prone to splurging on new items even when they can't afford it. The quick shot of dopamine from spending will fade fast, leaving you with less money and items you don't really need.
3. Prioritizing experiences over possessions
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Frugal people often are willing to spend a reasonable amount of money on meaningful experiences with family and friends because they value fostering connections. The memories and feelings from these experiences create a sense of richness that can't be replicated with material possessions. Frugal people continue to receive joy from indulging in experiences for a long time after the fact.
In fact frugal people are seriously on to something because a study from 2024 confirmed that spending money on experiences is the key to connection and overall happiness. Lead researcher Amit Kumar explained, “All of our buying habits are, to some extent, part of who we are, and they can connect us to other people. But that’s much more likely to be true of experiences we buy than material items we buy.”
Cheap people may avoid these experiences entirely because they don't think spending the money is worth it. They see it as a waste to spend on intangible objects, and their life may start to feel dull or repetitive. Cheap people would benefit from asking not how little they can spend, but rather what an experience could contribute to their life.
4. Taking up hobbies that don't involve spending money
Frugal people never let themselves be bored. They engage in hobbies that are low- or no-cost, such as baking, crafting, or gardening. These activities help them to improve their creative or cognitive skills and make them feel more fulfilled in life.
Having a hobby has been known to improve overall happiness and well-being in all individuals, especially when shared with a friend. Hobbies can help reduce stress and depression, raise self-esteem, and increase focus and concentration.
Cheap people often experience boredom and try to remedy it with quick or low-cost entertainment. They may have an over-reliance on technology and would rather do things that allow them to turn their brains off and space out.
5. Curating long-term wealth
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Frugal people consider the value of something, not just the cost of it. They are willing to invest in something that will provide them with future benefits, like preventative healthcare or continuing education. Those things may seem like current luxuries, but they actually serve as a foundation upon which wealth can be built. In the long run, frugal living can help someone achieve real financial freedom.
While cheap living provides short-term savings, cheap people are often more dissatisfied in the long term. They experience chronic anxiety about money and finances, and feel guilt and stress anytime money is spent, even if it's necessary. They make themselves suffer because their 'cheap' mindset is rooted in fear, avoidance, and a lack of control.
Kayla Asbach is a writer currently working on her bachelor's degree at the University of Central Florida. She covers relationships, psychology, self-help, pop culture, and human interest topics.
