Maybe I’m too cheap. Yesterday I was on the phone for two and a half hours with Sprint in order to get their $15 a month plan. This is the first time I’ve had a postpaid plan. I’ve had Freedompop and Virgin Mobile most recently ($2.49 and $1 a month), but the service has been pretty bad, so it is exciting to switch. However, spending so much time with Sprint had me wondering if I was being cheap. If I wanted a hassle-free experience I probably could switch to Verizon and pay $60 a month for the rest of my life. However, if I did that ten years ago I would have paid $7,200 for phone service. Instead, I have paid less $2,000, which is still a pretty big amount. Once you add in phones, then the numbers can get pretty frightening.
Cheap vs. frugal
I prefer to be frugal, but some may think it is being cheap. To me being cheap is something that puts you or others in an awkward position. The show Extreme Cheapskates is full of these examples. There is a person who brings microwaveable rice to restaurants and asks them to make it for her so she doesn’t have to pay. That is going to be awkward for you, the restaurant, and your friends. Then there was a guy whose entire house was covered in plastic wrap. I’m all for taking care of things, but that is overboard.
Being frugal is about making financial tradeoffs. Maybe you go for a used car instead of a new one. Or you buy gas cards at a discount. No matter what you do, some people will see it as cheap while others will view it as frugal. Don’t live your life worrying about what others are going to think; strike your own balance.
Time is money
The entire financial independence concept comes down to this: if money weren’t the constraint how would you spend your time?
I spend a lot of time reading about travel and credit card deals. This morning I was going through Mint to make sure all my cards were connected and on autopay. Don’t want a late fee. Doing this takes time, but in return I get to travel for free. I consider this a frugal habit, but to some I may be cheap because I don’t just book a trip, but instead precisely select which airline has the best deal with points and how can I optimize my hotel stay. Some people prefer to budget $5,000 and then just go for it. This may work for you as you don’t have to monitor many things and it is probably more relaxing.
Economic theory states there is a tradeoff between work and leisure and I would wholeheartedly agree. My goal is to get things to a point where I don’t have to worry about them. My bills are on autopay, I have no yard to maintain, and I don’t actively invest. As I get busier I imagine some habits will decrease, but for now I think the rewards are worth the time.