For some people, being “frugal” is just a euphemism for being cheap. So, what is the difference? And where do you draw the line?  Silicon Valley Blogger got us thinking about the effects of extreme saving.

Which of the following are you willing to do?

• Cut your own hair?
• Ration milk in your house?
• Recycle and collect money for all of your cans?
• Purchase only used furniture, electronics and clothing?
• Only order water when you go out to eat with friends and family?
• Always make your own lunch?
• Purchase all of your groceries at Sam’s Club or Costco?
• Steal napkins, ketchup, salt, pepper and other condiments from fast food stores?
• Tip less because it cuts back on the overall bill?
• Check out movies from your library for free, instead of dropping $10 at the theater.
• Grow your own food?

For me, reusing, recycling, and buying second-hand furniture allows me to save money, while strengthening my self-image as an environmentally conscious citizen. Taking condiments from fast-food places feels like theft to me and (having worked as a server) I would never think of tipping less than the regional norm.

But I know people who have done all of these things, and more!

So, how do you decide if you’re being cheap or frugal?

You really just have to think about your values, and the cost-effectiveness of your choices.

While small steps can definitely save you big bucks over time, be sure to throw your energy into the changes that will save you the most cash, rather than making large life changes to shave off nugatory amounts here and there.

But the real key is to make meaningful choices that do not undermine your values. And the best possible changes you can make are those that echo your values and also manage to save you money.