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I think being cheap is a problem if it is an obsession that interferes with your ability to enjoy life (like if you deny yourself EVERYTHING you want), or if it's a practice for its own sake.
If you're being cheap to save for something else, or because you find it a fulfilling practice, then hell yeah - it's a better financial practice than conspicuous consumption or irresponsible deficit spending, in my book. A lot of stuff we waste money on doesn't make us happy the way we thought it would when we wanted it. Pinch those pennies!
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"If ten million people believe a foolish thing, it is still a foolish thing."
- Anatole France
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