What’s the difference between people who are labelled 'cheap' and people who are labelled 'frugal?'
Frugal people understand that paying more doesn't necessarily mean better value; however, frugal people will willingly pay for a product or service they do perceive as value.
People who have a mindset of 'cheap' wouldn't pay what they perceive as fair value but look for the opportunity to get it at the lowest cost no matter what.
There is a fine, but distinct line, between both perspectives.
Cheap people only look at price. They believe that the only way to achieve 'value' is to pay less, and for them to win, the seller of the service or product must lose. They simply don't believe that the best outcome for all involved is 'win-win.' They generally walk around with suspicion and fear that someone may be out to 'rip them off.' And in many instances don't want the other person to benefit or 'make money' off them and perceive that those that do have success, have somehow manipulated the system or have some sort of unfair advantage. 'Cheap people' are the advocates of the society of the 'tall poppy syndrome.'
The frugal person, on the other hand, will look at each situation, case by case. They may not necessarily want to pay the highest price, but fully understand that all parties to a transaction must gain a benefit and that everyone needs to win in each situation. 'Win-Win' is one of the fundamental habits of successful people; very famously described by the late Stephen Covey, in his best-selling book the 'The Seven Habits of Highly Effective People.'
So how does all this apply in our real estate world, let alone our everyday lives?
Let's start with our home sellers when asked to pay for their marketing products for their home - Vendor Paid Advertising.
The 'cheap' seller will always be drawn to those agents/agencies who offer a 'no-sale no-charge' policy. i.e. sell or not, they will not pay for the advertising and risk losing any money. They would rather see the agent lose and take the risk.
But this is the critical lesson.
The 'cheap' person will also have a fear and 'mistrust' disposition. Which will mean, out in the field, building 'trust' and providing help with logical advice to get their property sold may also fall on deaf ears.
The exact same would apply to landlords. If they have a 'cheap' mentality, they will not invest in maintaining their properties or 'value' the services of their property manager. In the field, we call these landlords our 'difficult' ones and generally speaking create 80% of the workload in property management departments.
A frugal seller would understand that the marketing component on the sale of their property is an investment.
The same would apply with a frugal landlord. Any repairs and maintenance to their property would be seen as an investment to maintain the value of their property; and will also want their tenants to be comfortable in their property.
It's not just only about the financials for them. And simply by this very distinct disposition, they will be easier to work with and you will feel valued by them; and that in itself is a MAJOR reason to seek them out.
Now, this understanding of the differences between 'cheap' and 'frugal' also applies in every aspect of our lives - and this is where I see a lot of people get really unstuck.
Their 'cheap' mentality, stifles more than just their everyday life be it at home or work, it dramatically affects their happiness. In a way, I feel some sympathy for these individuals because I see many of them who simply don't know how to find joy and happiness in their lives.
Having a 'Cheap' mentality means and affects so much more than just the things we wish to buy. It negatively affects our general wellbeing and as my opening title implies, 'cheap thinking' stops you from having it all.
So, the saying 'not all business is good business' and not 'all friends are good friends' has strong merit.
Understanding who you are about to work with, and for that matter, 'hang around with' and whether they are 'cheap' or 'frugal' will have a huge impact to the relationship and outcome. And much more importantly, your sanity and wellbeing!
Choose wisely!
