Cheap vs. Frugal

This question was posed to me recently.  What is the difference between someone who is cheap and someone who is frugal?  A co-worker of mine was telling me the story about a guy he knows who he considers to be "cheap".  Anytime this guy knows that one of his neighbors is going to be grilling he invites himself over and brings one hot dog.  He throws it on the grill, cooks the hot dog, and then heads home to eat his dinner.  My co-worker's point about this man was that instead of a) bringing enough for everyone or b) firing up his own grill, he just mooches off of other people.

I told him that I actually disagree.  This guy lives alone and does it really make sense to light the grill for one hot dog?  He's not inviting himself over for dinner and not contributing.  The only thing he's "mooching" is a small amount of space on a hot grill. 

But the conversation definitely got me thinking about it.  There are times that I will not buy something because I know I can get a better deal on it somewhere else.  I almost become obsessed with finding the lowest price.  Is that searching for a lower price a good use of my time which also has a value?  No, probably not.  But am I cheap?

I'm one of the best tippers I know, if I know or like someone who provides a service I will use them simply because I like them and not worry about the price at all, and I love to eat out in really nice restaurants for big events and celebrations.  But I also plan for those things.  Part of our eating out budget covers the fact that I know I almost always tip at a minimum 25%.  I set aside money ahead of time for celebratory dinners or expensive services so we're not scrambling to pay for it. 

So I am curious.  What do you think the difference is between being frugal and being cheap?  Post in the comments below. 

Comments

[Regan Lehman Pillar]

I think the main difference between being cheap and frugal is your regard for others. I tend to classify cheap folks as those that only consider themselves and their pocketbooks without being fair. I see frugal as being smart with your money and not overpaying needlessly.