One of the key tenets in the frugal versus cheap argument is buying high-quality goods.
A frugal person will spend to own a quality item, knowing it ends up costing less in the long run. It might cost more at the beginning to buy a $200 pair of shoes rather than a $50 pair, but if the $200 pair lasts a decade and the $50 pair only lasts a year, it’s obvious the more expensive pair is the better buy. A cheap person will find a way to get the $50 shoes for $20.
But there are a number of problems with this kind of thinking.
First, it assumes there’s a linear relationship between the price of an item and its durability. Often the $200 shoes will only be marginally better than the $50 ones, yet the price tag is quite different. I learned this the hard way when I spent $1,200 on an Apple MacBook when a $600 PC laptop would have been every bit as good.
Many people also don’t have the patience to own something forever. Styles change, and so do our preferences. $200 on shoes is not a frugal choice if you refuse to wear them after a year.
And remember, sometimes brands will sucker us into paying more for the exact same product. I know people who refuse to buy the store brand of Advil, even though it’s the exact same pill as the name brand.
Part of being a responsible consumer is realizing the difference between an expensive product and a cheaper one might not be big enough to justify the bigger price. Having a skeptical attitude should save you money over time.
