[poundwise]

I can think of two major things:

First, being cheap is often not very frugal. If you buy something that will not last or that does not work well, then it doesn't matter how much you saved on the purchase, you didn't get value for your money. The idea of being frugal, I think, carries with it the notion of being wise with purchases. Buying poor quality goods or items that won't well serve the intended purpose is not wise.

Secondly, being cheap is often less a money issue and more a personal attitude one. What's worse, it often is accompanied by selfishness. The cheap person is rarely a very giving person in any area of life. Often, the attitude of spending as little as possible translates into other areas where the person will give and do as little as possible to get by as well.

One other issue that comes to mind:

While I think being frugal and being cheap are not synonymous, I do see that one (being frugal) can lead to the other (being cheap) or at least other negative aspects of behavior.

So many set out to be frugal in order to save money, spend wisely, keep a budget, etc. but end up getting so wrapped up in it that it becomes, first an engrossing hobby, and then, a way of life that has forgotten the reason why it started. Often, these people will do outlandish things or spend inordinate amounts of time, to save a small amount of money. Sometimes, they even look down on people who are not themselves being wasteful or unwise with money but who do not share their fanaticism.