I had completely forgotten about this post, written more than 20 years ago, even though I went on to write about exactly this topic for Wise Bread for years.
This post was about the difference between playing at being poor (which gives you a bunch of psychic benefits) versus actually being poor:
Playing at being poor means living in a cheap apartment, eating cheap, healthy food prepared at home, having only one car (and not a new one), and so on. It’s really only a matter of giving up stuff–and not even all stuff. You can easily justify an extravagance or two. You might give up cable, but have a cable modem. Give up movies, but go to plays. Give up coffee shop coffee, but buy Jamaican Blue Mountain for home. In many ways, it’s the way I live now. But I try not to be smug about it. I know the difference between what I’m doing and being poor.
Being poor isn’t frugal or safe or healthy. Being poor means skipping an oil change because the alternative is skipping lunch for ten days. Being poor means living in a dangerous neighborhood. Being poor means wearing shoes that hurt your feet.
The difference is a matter of capital. Having capital is frugal. If you have capital you can play at being poor and actually live more cheaply than a real poor person. A frugal person’s car lasts a lot longer than a poor person’s. You can buy when things are cheap, instead of paying whatever price they happen to be when you simply can’t do without them any longer. Similarly, it’s safer and healthier.
Source: 2002-03-06
There’s a bit more if you click through.
