Is there a difference between cheap and frugal? According to the U.S. News & World Report, there are five major differences between the two. One of the biggest examples is when the two types are dining in a group. The cheap person will pay the exact amount without including tax and tip, while the frugal person will always pay their fare share. We all know the type. Consequently, frugal people will not save money at the expense of others. That is a key difference.
Another big difference is that the cheap shopper will always go for the cheapest price while the frugal one looks for the best value.
Warren Buffett is the perfect example of a frugal billionaire. He lives in the same house that he purchased decades ago and drives an old car (sans chauffeur). Conversely, we’ve heard that John Caudwell, who has a net worth of over $2.6 billion cuts his own hair. He also buys his clothes off the rack rather than spend time or money having them tailor-made.
Many of those who made it to the list are simply known as being poor restaurant tippers, which says a lot about how they view wait staff who count on gratuities as part of their earnings. The others are fans of coupons and cheap department stores. Check out this list and see what you think. Frugal or cheap? That is today’s question.
17. Maggie Gyllenhaal – Actress
A little story about Maggie that doesn’t show her best side is that when a restaurant owner decided to comp her entire check because he was a fan, she was generous enough to leave $6 on the $200 tab. On what planet is a .03% tip the going rate?
16. Jeremy Piven – Actor
Hard to believe, lavash character Mr. Selfridge (formerly character Ari Gold in super popular series Entourage) is so cheap he was once dining in the highly popular Matsuhisa in Aspen, which is owned by celebrity chef Nobu Matsuhisa. Even with 11 friends around him, Jeremy was not embarrassed to leave a copy of Entourage’s first season… as his portion of the tip! Reports say he is no longer welcome in any of Nobu’s restaurants.
15. Teri Hatcher – Actress
Fashionable Teri Hatcher has been on a couple of TV’s most popular shows, such as Desperate Housewives. But in between her two gigs, Lois & Clark and Housewives, Hatcher became aware that jobs might be far and few between. So she became known as cheap compared to her income level. Reports point to her car-buying policy, as being a sign of being cheap or is this just someone attempting to remain money conscious? She is known to keep her autos for 10-years or until they reach 100,000 miles before considering buying a replacement.
14. Hilary Swank – Actress
Hilary Swank is known as being one of Tinsel Town’s cheapest… or frugal, depending on how you want to look at it. She came up through the ranks and became an Oscar winner, after growing up extremely poor, which conditioned her to live well within her means. Evidently, she shops at Target, buys in bulk and stays in ultra cheap motel rooms. Swank has a current net worth of $40 million.
13. Kristen Bell – Actress
This little Veronica Mars cutie is now a vixen on Showtime’s House of Lies and undoubtedly makes some great coin. But she has not become tempted to live the Hollywood dream. Kristen shops at Target, Costco and Bed, Bath & Beyond and loves to use coupons galore. In fact, when she and husband/actor Dax Shepard were married, they went to the local courthouse and spent approximately $142 on their wedding.
12. Sarah Jessica Parker – Actress
Fashion-forward Sarah Jessica Parker actually spends very little on clothes, to the surprise of all of her fans. Of course, she was able to walk away from Sex and the City with a pretty amazing wardrobe. Often these “cheap” celebrities come from low-income families and SJP came from a family of eight who lived on welfare, while she was growing up. So she dresses her son, James, in hand-me-downs and is frugal on her own clothing shopping habits.
11. Robert Pattinson – Actor
Robert Pattinson is a little off-beat compared to so many other A-list actors. He has not been one to embrace fame head on, so he spends accordingly. Reports have him buying a car off Craigslist and trying to work the owner to lower the $2,500 price tag. Additionally, when he wasn’t living with his parents he has rented an apartment on a month-to-month lease.
10. Eva Longoria – Actress, Restaurateur
Evidently, Eva‘s always on the hunt for the free perks often afforded to Hollywood hotties. We haven’t had any evidence of Eva being a stingy tip-giver, thank goodness as she is a restaurateur. But we did hear a few horror stories about how she finagled 18K yellow gold charm bracelets for all the female guests at her wedding to Tony Parker, even though they spent $1.5 million on the wedding.
9. Jim C. Walton – Walmart Heir
Walton drove a 15-year-old Dodge Dakota back in 2007, and is worth over $16 billion. Jim is the youngest heir in the family, is chairman of Arvest Bank and is in charge of the family’s personal wealth management company. He continues to live in Bentonville, AK and work in downtown Bentonville in an office in an old brick building. Cheap, frugal or simply not interested in living an ostentatious lifestyle.
8. Barbra Streisand – Singer, Actress, Producer
We hate hearing such awful things about the iconic songstress, but rumors include that not only is Barbra Streisand an extremely cheap tipper, she is rude to the staff. An example of her bad tipping habits is that she left $10 on a $450 bill, but normally does not tip at all! If not tipping is what she does then one must wonder why? Streisand has an estimated net worth of $340 million.
7. Ingvar Kamprad – Founder of IKEA
Founder of world-renowned IKEA, Ingvar Kamprad, is said to drive old cars, fly economy class, eat in cheap restaurants and negotiate on prices at the local markets. His house in Switzerland is decorated with typically inexpensive IKEA furniture. However, this billionaire stays true to his company and avoids lavish expenditures, according to reports.
6. Mark Zuckerberg – Facebook
This young billionaire is worth over $32 billion and from the reports we’ve heard, he aims to stay that way by staying frugal. The New York Post reported that Zuckerberg didn’t leave a tip when he and wife, Priscilla Chan, were on their honeymoon in Italy. But that’s not all. Evidently, he purchased a $25,000 wedding ring, which by billionaire standards is quite tiny. Additionally, their wedding took place in Priscilla’s own backyard where they catered a typical Mexican food feast that was valued at $7.50 per person.
5. Justin Timberlake – Singer, Actor, Restaurateur
We heard about Justin Timberlake’s small episode in Brisbane, Australia where he and friends were comped a $135 meal and neglected to leave a tip. However, what reports forget to mention is that in the country of Australia tipping is not the norm. Wages are higher for the hospitality industry in the down under country than they are here in the states, so the jury is out on Justin’s cheap move. Timberlake is part owner in Southern Hospitality, a barbecue restaurant in Manhattan, so we sure hope he understands the importance of a good tip.
4. Mick Jagger – Rock Star
Maybe Mick‘s just tired of the whole scene of people expecting things from him, so he became cheap? Not so, according to two of his past ex-wives. Marianne Faithfull reports, “I did notice he could be tight with money,” and Jerry Hall reminds us that he is “pretty tight with the day-to-day stuff”.
3. Madonna – Singer, Actress, Producer
Madonna has raked in the moolah over the years, yet is still known as being an extremely poor tipper. According to the British Mirror, she gave an $18 tip on a $400 tab. Evidently, the material girl likes to keep her material things to herself.
2. Tyra Banks – Model, TV Host, Producer
High fashion model, Tyra Banks, has kept her frugal ways regardless of how much money her shows, Top Model, Tyra Banks Show and TransAmerica has pulled in over the years. She takes home the free shampoo bottles offered in any hotel room in which she stays. She insists on staff members writing their names on their water bottles so half-empties aren’t left laying around, which is quite commendable. The real clincher is she had her show’s holiday party catered by McDonald’s. Ouch!
1. LeBron James – NBA Star
Years ago LeBron was accused of tipping $10 on an $800 meal, which is so substandard he should have worn a mask to hide his identity. The public got wind of it and stories were flying around about his poor social skills. As soon as word got out, James was publicized for sending over a much better tip for the upset waiter. We think that was public relations damage control, but evidently his fans ate it up.