ARTICLES
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Frugal or Cheap?By Pierre Mouchette | Real Property Experts LLC
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The Difference Between Cheap and Frugal Investors
As an investor, you are undoubtedly looking for ways to maximize revenues while minimizing your expenses. After all, the primary goal of being an investor is to make a profit.
Saving money will require you to cut costs and make wise spending decisions. Cutting costs in your investment business is essential. But you must be careful to know the difference between being cheap and frugal. You need to know:
As an investor, you are undoubtedly looking for ways to maximize revenues while minimizing your expenses. After all, the primary goal of being an investor is to make a profit.
Saving money will require you to cut costs and make wise spending decisions. Cutting costs in your investment business is essential. But you must be careful to know the difference between being cheap and frugal. You need to know:
- The cost of an item should not be your only focus. If an item costs a significant amount of money and it brings value to your investment, then it is most likely a good buy.
- Many cheap investors miss out on opportunities because they are not opened to spending money on essentials.
CHEAP INVESTOR |
FRUGAL INVESTOR |
Cheap investors are short-term thinkers. |
Frugal investors think about how an expenditure will affect them in the future. |
Cheap investors look for ways to save money even if it is at the expense of other people |
Frugal investors make financial decisions that do not infringe on the well-being of others. |
Cheap investors do not have spending priorities. Their goal is to obtain everything at the cheapest price, even if it means they must sacrifice quality to do so. |
Frugal investors operate using a budget and prioritize their spending. This means that they will opt to spend more money on the essentials and skimp on things that do not matter. |
Being Cheap Costs Money!
The irony is, being cheap costs more money than it saves over time. You have heard the idiom “Penny Wise and Pound Foolish.” A frugal person will know their limitations. A cheap person might ask themselves, “How hard can it be?” and then attempt to ………………
Always remember, it can be harder to do than you think, and some things require specialized knowledge. Doing some things will cost more than if you had just hired someone who knew what they were doing in the first place.
The irony is, being cheap costs more money than it saves over time. You have heard the idiom “Penny Wise and Pound Foolish.” A frugal person will know their limitations. A cheap person might ask themselves, “How hard can it be?” and then attempt to ………………
Always remember, it can be harder to do than you think, and some things require specialized knowledge. Doing some things will cost more than if you had just hired someone who knew what they were doing in the first place.
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RPE Category (Digital Digest)
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REAL ESTATE | RESIDENTIAL SMALL ASSET INVESTOR | Landlord
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PUBLISHED:
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March 6, 2021
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