It seems to me that many people see the word “cheap” in a negative light. I think this is because being “cheap” is associated with being stingy or greedy. A lot of folks, I think, believe cheapness is synonymous with illogical, obsessive penny-pinching - that is, focusing on the small stuff to the exclusion of what’s really important, filling your pockets with copper while the green stuff slips through your fingers. You can probably guess that I view the word “cheap” a little differently, seeing as I’ve chosen to use it in the title of my blog. So here’s what I mean when I use this word.

In being “cheap,” I always try to take the long view. There are a lot of things you can do that are cheap in the short term but which end up costing you money or depriving you of other opportunities later. I recently posted an article entitled Stuff I won’t buy cheap in which I mentioned that I won’t take the cheaper option when it seems dangerous or when it wastes a huge amount of time. The cost of neglecting your health and safety is too high for potentially dangerous behavior to qualify as “cheap.” Life really is not only about grabbing up every last penny. Also, there are many things you could do to save money which I wouldn’t recommend because doing those things is a poor use of time.

I’ll offer one example. I read on someone’s blog recently (sorry, I can’t remember which blog it was - if you happen to know, shoot me an email!) a story about how that person’s mother would always ask for extra ketchup at the drive-thru and when enough packets had accumulated she would rip them all open and spend about an hour filling up her ketchup bottle with a funnel. That’s kind of cool and funny and honestly I don’t have the right to criticize anybody else’s lifestyle - I mean, maybe filling up the ketchup bottle was an activity that brought the family together, and if so, that’s great. However, I wouldn’t choose to spend my time in that way. If you can get 24 oz. of ketchup for a dollar, is it really worth it to spend an hour to get “free” ketchup? Look at it this way: if somebody offered you $1 per hour to do some menial task, would you take it? If not, why would you spend an hour trying to save $1?

Cheapness isn’t only about ending up with a few extra bucks. Like they say, you can’t take it with you. So cheapness has to have a… how should I put this… a higher purpose! The motto of this blog is “live cheap to live free.” The whole point is that living cheap will allow to retire early and do what you always wanted to do instead of slaving away at a job you don’t enjoy. Now, if you like your job, that’s awesome. Keep on doing it. But if you want to be financially independent, you’ve gotta save. Saving money is even more important than investing - I posted just yesterday about this. Being cheap can be one way to achieve your dreams. Let’s say you want to start a charity or you need to have some side income to supplement a low-paying but extraordinarily fulfilling job or all you really want to do in life is provide for your kids but you’re struggling financially. Living cheap can help you achieve any of these goals.

Finally, being cheap is not about being greedy. In fact, it’s about recognizing the worthlessness of money! Many people spend a lot of money trying to convince other people how much money they have. The trouble is that once they are through spending all that money, they don’t have it anymore! The only way to actually accumulate money is to chill out about the whole wealth accumulation thing and live like you’re poor - that is, live below your means. If you’re hyped up about showing off how much cash you’ve got or about getting rich quick, you’re probably gonna get poor quick.

The really important point I’m trying to make is that there are things that are more valuable than money - time, health, and family being a few of them. And being “cheap” means using your money in such a way that you squeeze the greatest possible value out of life. If you’re greedy or stingy, you’re going to be too blinded by material things to accomplish that.

So I hope that clarifies what it is to live “cheap,” at least as I see it. Living cheap is awesome and cheapness, if you have it, is a quality you should be proud of!

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