Don't be cheap, be frugal

Number 8 in Paul Graham's essay Startups in 13 Sentences is "Spend Little. I can't emphasize enough how important it is for a startup to be cheap." It's a good essay, and even more interesting to watch as he writes and corrects it. But he is wrong on about #8. Cheapness is always bad, frugality is good. It may seem like minor semantics, but from someone as influential as Paul Graham it makes a difference.