When learning to manage your money, lowering your expenses is one of the first steps to take. The best way to do this is by being frugal. However, this can be an uncomfortable line item for some to make adjustments to. You are likely comfortable with your current lifestyle and changing your mindset can be uneasy. There may be concern about what others might think of the changes you want to make. You might ask yourself, “Will my friends think I’m cheap?”

Why you should decrease your expenses

Having your why in mind helps offset the anxiety you may feel about living a more frugal lifestyle. Decreasing your expenses has many benefits.

1. You create more room in your budget so you can save more towards your financial goals. Pay down debt. Build that emergency fund. Start investing.
2. Creating more room in your budget decreases stress. If you’re living paycheck to paycheck, the breathing room you can create can be such a relief.
3. Since life usually costs more year after year (remember inflation) but incomes don’t usually increase at the same rate, then lowering your expenses helps to keep life affordable.

Defining your why makes change easier. Additionally, if people think you’re being cheap, you’ll have a clear answer for those you choose to explain yourself to. Over the years, I have learned to save money on my groceries, my car insurance, my utilities, etc.

Being frugal versus being cheap

Finding the balance between being frugal or being cheap is important. Oxford dictionary defines frugal as being economical or simple and plain. The same dictionary defines cheap as at a low price or stingy.

Being frugal means that you give thought to how your money is spent. As a result, you are intentional with how that money is spent. You compare prices before shopping or wait for sales to get gifts for friends. Instead of eating out every day, you meal prep and eat out less frequently. When you get a raise, you don’t just start spending more but instead look for ways to save the difference.

Being cheap is intentional but is usually associated with choosing lower quality or making yourself and others uncomfortable to save a dime. This doesn’t usually make you a pleasure to be around but that’s your choice to make. If you find yourself leaning toward cheap rather than frugal, you can work with those around you to be more balanced and find a middle ground.

Either way, it’s crucial for you to define for yourself who you want to be. You may be living frugally and people still call you cheap because they do not appreciate the value of a frugal lifestyle. However, if you’re confident in your definition of frugal and your choice to live a frugal lifestyle, you won’t be fazed by this. In time, those same people may come to you for tips on how to save money when they are ready to hear it.

Find Your People

If all the people you interact with discourage your decision to live more frugally, then you can get discouraged. When I first started making these changes, some people would poke fun at it. Over the years though, they started to adopt these changes themselves and were also thrilled with how much they were saving.

Therefore, in the meantime, it is important to find yourself a community of like-minded ones. A community makes it much easier to stick to your goals and succeed in accomplishing them. This does not mean you have to replace your friends. However, adding people to your life that are headed in the same direction is extremely helpful.

You can do this by subscribing to Youtube content creators like Graham Stephan, Camille Collazo, and The Broken Wallet. You can follow personal finance writers on social media and/or join Facebook groups like ChooseFi. In taking these steps, you can share your wins with people who will get excited with you. You can also get new ideas on how to save that you never even thought of. All of this can help you get one step closer to reaching your financial goals.

Being frugal and being cheap are two different things. You have to choose for yourself who you want to be. Be intentional with how you choose to spend your money. Associate with like-minded people.

Your turn. How do you define being frugal versus being cheap? What’s your favorite frugal living tip? Share in the comments below.

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