The question you need to ask, is what's their end game? I take issue with this, because I am the person you talk about. I drive a corolla that is pushing 20 years, routinely shop at dollar stores, and get the half off food about to expire. I look at incoming and outgoing money as seperate discreet things. Completely unrelated to each other. Most people don't. I'll buy all the cheap meat I can because if I freeze it, it's good for months, and it will eventually get eaten. Its a slightly higher up front cost, but the long term effect of this is that all my food costs 30-50% less. Buy food when it's cheap, eat what you have on hand, and what's in your freezer/pantry is your buffer because food isn't always cheap. Restock at opportune times. It isn't about money. It's about not being wasteful. Full on agree with cheap vs frugal.
Cheap in my opinion, is very short sighted, affects other people (not tipping etc) and often time in the long run, is not financially prudent.
Frugal on the other hand takes into account all factors (time, effort, MONEY, social stigma (again not tipping) ) and based on all of these things, picking the lowest total cost. It just happens that money is a weighted factor, because money can easily be changed to anything else. (Money converts to a car a hell of a lot easier than vice versa)
Same thing with work. I'm of the opinion that if I work 4 hours a week or 120, the week is shot. Now that I'm working, I'm pushing a healthy 6 figures. I'm spending like 10-15% of my pretax income on living expenses.
I don't mind living like a student. I just bought a 2k camera lens on a whim, my friend bought an 18k harley. Why? Because we enjoy these little hobbies. Money is freedom.
My end game is to stop working for good, and am on track to do it in the next couple years (early 30s). Then I can stop working a job I can barely tolerate, continue living a modest lifestyle, and basically do whatever the fuck I want. Do you honestly think your friends want to bank 90% of their salary working until they're 65 so they can be the richest guy in the grave yard?
While Mr. Money Moustache is kind of a little *too* far out there, I agree with a lot of what he says. The difference between a 20 yr car, and a new one, is $25k, which if you invested it, means you could retire years earlier. What does a new car get you over an old one? A little imagined status. Most people are way to inwardly focused to give two shits about your new car beyond a passing comment of a facebook like.
Cheap in my opinion, is very short sighted, affects other people (not tipping etc) and often time in the long run, is not financially prudent.
Frugal on the other hand takes into account all factors (time, effort, MONEY, social stigma (again not tipping) ) and based on all of these things, picking the lowest total cost. It just happens that money is a weighted factor, because money can easily be changed to anything else. (Money converts to a car a hell of a lot easier than vice versa)
Same thing with work. I'm of the opinion that if I work 4 hours a week or 120, the week is shot. Now that I'm working, I'm pushing a healthy 6 figures. I'm spending like 10-15% of my pretax income on living expenses.
I don't mind living like a student. I just bought a 2k camera lens on a whim, my friend bought an 18k harley. Why? Because we enjoy these little hobbies. Money is freedom.
My end game is to stop working for good, and am on track to do it in the next couple years (early 30s). Then I can stop working a job I can barely tolerate, continue living a modest lifestyle, and basically do whatever the fuck I want. Do you honestly think your friends want to bank 90% of their salary working until they're 65 so they can be the richest guy in the grave yard?
While Mr. Money Moustache is kind of a little *too* far out there, I agree with a lot of what he says. The difference between a 20 yr car, and a new one, is $25k, which if you invested it, means you could retire years earlier. What does a new car get you over an old one? A little imagined status. Most people are way to inwardly focused to give two shits about your new car beyond a passing comment of a facebook like.