Frugal Isn’t Cheap – It’s Freedom

We all say that “Financial Freedom” is what we want.

However, as far as most of the people I have encountered are concerned, most of their spending has to do with, essentially, Social Survival with better Packaging. We’re not buying the product. We are buying the feeling of being caught up..

In any case, I came across a news item from CNBC (at random) that related to a 79-year-old father with financial behavior that has not changed to this day, and the most memorable takeaway for me is the distinction between cheap and frugal.

It means much more than semantics. It’s a whole way of thinking.

Cheap vs. Frugal: One is Scarcity, the Other is Strategy

Cheap is where you cut without considering the implications and being frugal for me is where I cut waste while maintaining value.

What I’m saying is that cheap is just looking for “What is the lowest price?” while I think of frugal as looking for “What is the best deal for my life?”

At least for me, the second question is a game-changer.

But frugality is not a form of deprivation. It is selectivity. It means knowing where your money makes money.

Quick Gut Check

Have you ever:

• bought something “on sale” you didn’t need,
• avoided a necessary purchase and made the payment later (time, stress, repairs).
• financed a lifestyle because everyone does,

then you already know the difference. You’ve lived it.

The real flexibility comes from optionality – not from stuff.

Here is the part that people don’t like hearing: If you require that income just to maintain your lifestyle, then you’re not winning. You’re renting success.

The way I see this is, optionality is the flex, in other words;

• You can say no to an unwanted client.
• You can take  a month to recuperate.
• You can change careers without anxiety.
• You can manage the surprise cost without making it a crisis for yourself.

And, yes, it becomes simpler with increases in income. But I have met many with high incomes and no optionality. They appear successful. They are really trapped.

Frugality, if practiced properly, also liberates you from your own patterns of spending.

So with that being said here are;

Eight Money Principles (that don’t get old)

Before I dive into them, let me say that I am no financial expert. I am simply someone who has observed what does and doesn’t work (and what quietly breaks people).

These eight principles I would wager on in any economy:

1. Buy value, not validation.
   If the purchase is mainly about how you’ll be perceived, it’s probably a tax.

2. Avoid “small monthly payments” as a lifestyle.
   Subscriptions, financing, upgrades, “just €49/month” – it adds up into a permanent baseline you have to feed. (We have exactly 2 subscriptions)

3. Spend aggressively on what moves the needle. Cut ruthlessly on the rest.
   This is the frugal sweet spot: fewer purchases, better purchases.

4. Choose boring consistency over cleverness.
   Most financial peace is built on unsexy habits repeated for years. Not hacks repeated for two weeks.

5. Protect your future self from your current self.
   Automate what you can (savings, investing, bills), because willpower is not a scalable financial strategy.

6. Don’t confuse “affording the payment” with “affording the item.”
   If you can only afford it because it’s spread out, you’re probably early.

7. Treat debt like a power tool.
   Used carefully, it can build. Used casually, it takes fingers off. (Especially the high-interest kind.)

8. Measure wealth in time, not toys.
   The endgame isn’t a nicer cart. It’s a quieter mind and more control over your days.

It’s not revolutionary. That’s precisely the point. So-called “timeless” investment advice is often dull because, well, it’s a reflection of reality.

What does this look like on a day-to-day basis?

Let’s put it in clearer and more understandable terms, so you can fully grasp what I am saying.

Example 1: “Successful” treadmill

You get paid more. You upgrade (trust me, I’ve done it too):

• Apartment –> “Because I deserve it”
• car –> “because it’s reliable”
• wardrobe –> “because perception matters”
• travel –> “because life is short”

Individually? Fine.

However, cumulatively? Your baseline cost of living quietly doubles, and now “success” is fragile. Frugal doesn’t mean you never upgrade. It means you upgrade on purpose – and you keep enough margin that one surprise doesn’t wreck your month. I really hope that makes sense.

Example 2: Cheap that backfired

You buy the least expensive solution for something you use every day. It’s going to (eventually) break, perform poorly, frustrate you, waste your time, so what’s the end result? You’re going to replace it.

Frugal says, “Buy once, cry once (sometimes).” Not always. But often enough that it’s worth asking the question.

Case 3: The “I Don’t Track it” Deception

“High-performing” individuals tend to track workouts, steps, projects, KPIs, calendars.

But money? “I’m not really a budget person.”

Translation: “Don’t let them see me.”

And it’s only fair – it’s uncomfortable.

But that discomfort is often the price of admission for gaining freedom.

Key Takeaways

• Cheap is where you cut cost, while frugal is where you protect value.
• What you’re really trying to buy is optionality.
• Your lifestyle will be either a tool or a trap.
• The basics should be automated so that you are not having to negotiate with yourself each month.
• Spend hard in the areas that matter. Cut the rest.

One Challenge

(try this please within the next 24 hours)

Perform a 15-minute “baseline audit.” Open your banking/credit card app and see what you’re currently paying each month and list the charges that repeat on a regular basis. Now choose one of the following:

• cancel one subscription you no longer use (or really, really need), or alternatively,
• downgrade one plan,
• or automate a small transfer to a Savings/Investing account the day after payday.

Not dramatic. Just decisive. Because momentum doesn’t come from inspiration. It comes from removing friction.

Closing Question

If you stopped trying to appear successful for 90 days – What would you do with this margin? What would this practice reveal about what you really value?