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Why I Live Like I'm Broke: Am I Cheap or Frugal?

A big misunderstanding people have is the difference between being cheap and frugal. A lot of people often wonder why I "seem cheap" even though technically I have a lot of money. Some people think that if you have money you should spend it, and if you don't, you are either secretly poor, or that you're being cheap. In this blogpost, I'm going to share my financial mentality with you, and clear things up. 

This infographic is really good, and explains a lot. It's a fine line between being cheap and frugal, and honestly I hate cheap people as they are bad for society and the world. But just as much, I dislike people who flaunt being Rich, especially when they are secretly broke, as it creates an expectation in society to act and look a certain way that is unsustainable.  There's a huge difference between being or looking Rich, verses being Wealthy, and in this blog post, I'm going to explain why I choose to live like i'm broke, and why I spend money on the things I do.






Being Cheap: Why It's Bad



Caring only about price often leads to a lower quality of life. Eating the cheapest food, and buying things that have the lowest price tag regardless of how good it is, may not seem like a big deal, but shouldn't be the only concern. Instead, I like looking at value. 

When I shop, I generally buy the lowest cost item that is the best value. For an example, instead of buying the iPhone 13 Pro, I get the base 13 as it uses the same processors and camera but is a better value. For my computer, I use the base model M1 Macbook Air, as it's half the price of the Macbook Pro but still does everything I need it to do. If I was going to buy an electric car, I would buy a model Model 3 as opposed to the S or X as neither are as good of a value. 

The same comes for food and restaurants. I like going to places that have good, tasty food, that is a good value and not overpriced just because it's fancy. I hate going to 5-star restaurants that serve tiny portions with high prices just because it looks unique or exclusive. The same with high end fashion brands, or paying just for a label or to be seen somewhere. I've wasted so much time and money trying to impress others in my 20's and early 30's that I wish I could have done it differently.







How it Started

I grew up in a poor immigrant family, and we never had a lot of money to waste. For a few years when I was young, my parent's started earning a lot of money through a business they started, that's when my Mother decided to start living rich.

She bought a cool sports car, a lot of clothes, and went shopping every weekend. My Father, wanted to save the money for the future just in case. That resulted in the two of them fighting a lot, and almost getting a divorce when I was a teenager. 

My Dad turned out to be right, a few years later, that business went down hill, the company my Father had worked for 25 years suddenly went out of business. My parents were now both old but had to go back to work at barely over minimum wage; my mother as a waitress, and my Father worked two jobs as a warehouse worker and as a taxi driver.

If it wasn't for me retiring my parents a few years ago, they would still be working part time today in their 70's. I never want to be in that position, and want to save up and invest enough money for my retirement that I never have to work that hard when I get older, especially because I don't know if I'll physically be able to. 




Money Thoughts Today



As of now I'm trying to find the balance of continuing to live frugally, while not saving money just for saving money's sake. Sometimes it's okay to splurge or buy the higher priced item if it's either a good value, or it'll improve your life and good benefit. 

This article will be continued as I need to go to Puzata Hata in the next 13 minutes before the breakfast special ends at 12:00pm...

-Johnny


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