This dilemma will inevitably come up for any personal finance blogger or person trying to get out of debt.
I will try to define the terms Cheap and Frugal as concisely as possible using the diagram below:
Social responsibility is defined as how considerate you are of others when making your financial choices. If you are negatively affecting others because of your fiscal habits, then you will be viewed as cheap.
Being cheap has a “social element” whilst frugal does not
Scenario #1: Packing a Lunch
Frugal: Packing a lunch everyday to work
Cheap: Packing a lunch everyday to work and skipping all team lunches and socials*
Generous: You are the director/manager of your team and take your team out to lunch on your dime
Wasteful: You are the director/manager of your team and you expect your team to dine out with you everyday
*You will inevitably be viewed as cheap because you are neglecting team building, socializing, to save money.
Scenario #2: Shopping for groceries
Frugal: Using a coupon at the supermarket
Cheap: Using a coupon at the supermarket; The cashier isn’t sure how to process the coupon. You insist that it is valid, holding up the line. Customers behind you grunt and groan.
*You will inevitably be viewed as cheap because your “frugality” has caused negative setbacks to other customers
Scenario #3: Hot humid evening
Frugal: Not turning on the AC this evening because you don’t mind the heat*
Cheap: Not turning on the AC this evening and subjecting your friends to sweating at your party
Generous: Turning on the AC to cool down your home during your party
Wasteful: Turning on the AC so much that your friends are shivering and asking for sweaters
*Saving money on AC could be viewed as frugal but not when it negatively affects friends/family.