Cheap people and frugal people are two very different types. Cheap people focus on price first, when it comes to spending their money. Frugal people focus on quality first when it comes to spending their money. Whether you consider yourself cheap of frugal, it does not matter if you do not have a handle on your spending.

We are in a new year and now is the perfect time to start new habits. Take a hard look at how you spend, are you analyzing as a cheap or frugal person, then spending like you have no worries at all?

Here are two tips to help you spend and save. First tip: set a dollar limit that you can spend each month without any thought as to what or why you are spending, maybe $100/month. Second: set up a savings or investment account separate from your regular bank account or credit card. Every paycheck make sure to move a fixed amount to this separate account, this will force you to save in an area that is not readily accessible, thus forcing you to accumulate long term wealth.

Frugal or cheap does not matter if you overspend in the end.

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