Welcome to this post about things rich people never waste their money on!
When we think of rich people, the things that most people think of are their huge houses, expensive cars, and fancy clothes. We think of mansions, Ferraris, and Gucci shoes, when in reality, most millionaires don’t even own those items. Sure, some millionaires buy several of those things, altering our perception of millionaire lifestyles. However, the ones who are AND stay rich, if not richer, are the ones who spend their money wisely.
“It’s not your salary that makes you rich, it’s your spending habits.” – Charles A. Jaffe.
Personally, I believe this quote has a lot of wisdom in each word. One could have a million-dollar salary, yet lose it all due to buying nonessential purchases. If Bill Gates were to spend half his salary on such materialistic items, he wouldn’t be the third richest person in the world today. If Warren Buffett spent his money on owning mansions and expensive cars instead of investments, he wouldn’t be the sixth rich person in the world. Yes, wealthy people can buy anything they want whenever they want, but that doesn’t mean that they are dropping bills left and right!
Of course, this doesn’t mean that wealthy individuals never buy any lavish or expensive items, they just put thought into what they are buying before swiping their credit card. Because of movies and other media sources, we are tricked into believing that those who own mansions and expensive cars are rich, and all those who are rich own mansions and expensive cars. To be honest, this is exactly what I thought before I realized the truth and reality.
As written above, you may think that wealthy people spend money on luxury items, overpriced homes, and more, but by reading this article, you would be shocked to see what things rich people never waste money on. Hopefully, by this read, you can discover the truth behind the fantasy and learn to not waste money on certain items! So, read on to find out things rich people never waste their on! You’ll surely be surprised.
1. Impulse buys
Of course, there are many times in our daily lives when we are tempted to buy something the second we see it. The new sweater right behind the window of the store. The shiny new car that’s parked at the front of the lot. While we may be alluring at the moment, it may not be the best choice to make. Wealthy people do not make purchases on a whim. As Warren Buffet told Forbes, “If you buy things you do not need, you will soon have to sell things you need.” This doesn’t mean that billionaires don’t buy expensive items, it only means that think about whether or not that item will help or bring joy to them. So, the next time your eyes are captured by the latest gadget, think twice before swiping your credit card.
2. Extreme inheritances
“It’s a fantasy to think we can all leave a mountain of money to our children and grandchildren, so they don’t have to budget as we did. But large inheritances are something rich people don’t use their money for. Why? Well, Bill Gates and Mark Zuckerberg both said they want their children to find their way rather than relying on a handout, according to CNBC. Instead, both billionaires are giving significant portions of their fortunes to charity to help those who need it most.” (www.readersdigest.ca)
3. TV channels and video games
Rich people didn’t amass their fortune sitting around staring at a screen all day. That’s why they don’t waste money on jumbo TV packages or the latest video games. According to 2015 data from Nielsen, adults in households with annual incomes below $25,000 spent considerably more time consuming media (through TV, video games, or radio), compared to adults in households with annual incomes over $75,000. “We expected high-income households to own more devices, but we did not anticipate that low-income consumers of all devices had greater usage,” says Glenn Enoch, Nielson’s SVP of Audience Insights. Thomas Corley, the author of Rich Habits: The Daily Success Habits Of Wealthy Individuals found that 67 percent of “rich” people say that they don’t watch TV.
www.readersdigest.com.au
4. Luxury brands
Just by hearing the names Gucci, Louis Vuitton, Chanel, Rolex, and so many more, we are enthralled by those brands in seconds. We want whatever we can get our hands on, whether it be Gucci shoes, Louis Vuitton purses, Chanel perfumes, and Rolex watches. However, it is just the brand that has been created that takes over our minds with greed and want.
Millionaires can afford all the latest fashions from all the luxury companies, yet many choose not to. Why spend their hard-earned money on materialistic items when they could spend it on better things? For example, Bill Gates told Time that he still wears a $10 watch despite being able to afford a closet full of Rolexes. If you’re still not convinced, just know that your mind only wants them, not needs them.
5. An over-priced home
Despite having a much higher budget than most individuals, wealthy people still look for deals when looking for a home. They want to feel like they’re getting the most value for their dollar and that they’re not being ripped off. Of course, they may be spending millionaires but they will still bargain with the list price, like anyone else. Not only this, but one billionaire in particular, Warren Buffet, still lives in the home he bought in 1958 for $31,500 (despite being the sixth richest person in the world today.)
6. Buying instead of renting
Some rich folks are going so far as to not even deal with the hassle of buying a home. Many are opting to rent, according to Extra’s Mansions and Millionaires host Michael Corbett. “Renting is more popular than ever, even among the wealthy,” he told huffingtonpost.com. “While it once made sense for people who could afford it to buy a home and flip it after two years, and the market has improved moderately this year, we’re hardly in a boom.”
https://www.readersdigest.com.au/food-home-garden/money/13-things-rich-people-never-waste-their-money-on
7. Expensive grooming
Everyone wants their hair to look perfect with no flyaways and no hair out of place. But, is it really worth it to spend hundreds of dollars on a trip to a salon? Some might argue yes, but some wealthy people don’t believe that one trim is worth swiping a credit card. For example, John Caudwell, businessman and billionaire, told TIME that he cuts his own hair. Along with that, Ingvar Kamprad, the founder of IKEA, told Newsweek that he cuts his hair in developing countries as a way of giving back.
8. Multiple credit cards
It’s understandable that a wealthy person might not want to walk around with a ton of cash in their wallet. But don’t think for a second that their wallet is filled with a credit card from every bank. Tom Corley, author of the best-selling book Rich Habits: The Daily Habits of Successful People, told U.S. News and World Report: Only 8 percent of rich people use more than one card. Meanwhile, 77 percent of poor people have multiple credit cards. With more cards, there are more fees to keep track of, more finance charges to accrue, and generally more opportunities to buy things you don’t need.
https://www.readersdigest.com.au/food-home-garden/money/13-things-rich-people-never-waste-their-money-on
9. Late fees
No one likes paying late fees when they miss a bill or payment, especially rich people. They believe it is a waste of money, and in fact, it is. As a solution, many of those who are rich set up autopayments on all their accounts, from mortgages and car payments to credit cards and insurance, according to David Bach, author of Smart Women Finish Rich. He told Learnvest, “Late fees add up to a fortune.”
10. Gambling
Of course, rich people don’t need to play the lottery because they’ve already struck it rich. However, all of them are still against wasting money on gambling. Warren Buffet has bashed the whole idea, saying “A government shouldn’t make it easy for people to take their social security checks and [waste them pulling] a handle.” He even put a slot machine in his home to show his children that when he gave them his allowance, they would fall into temptation and end up spending it all in one day.
11. Stuff over experiences
A car or spending time with family? Think about it… Research has shown that money and happiness can generate only so much happiness. It’s the life experiences that lead to a truly fulfilling life. According to Jaime Tardy, author of The Eventual Millionaire, the wealthy choose once-in-a-lifetime experiences over new gadgets. So, in simple words, just enjoy life and cherish every moment!
12. Retirement
Now, look: No one is going to advise you against investing money in your retirement fund. But for rich people, retirement isn’t a focus mostly because self-made billionaires don’t plan to retire, according to CNBC. A 2010 study from Barclay’s Wealth, published on CNBC, revealed that 54 percent of millionaires want to work right through their retirement years, and 60 percent of people with a net worth of $15 million plan to work “no matter what their age.”
https://www.readersdigest.ca/culture/what-rich-people-never-buy/
13. Things that don’t last
Even if wealthy people have the money to replace an item that has been broken or worn out, they wouldn’t choose to waste their money that way. After all, what’s the point of buying something that’s going to be break again sooner or later? “Wealthy people understand that the cheapest route isn’t always the most valuable,” said Peter Bush, a CFP with Horizon Wealth Management in Baton Rouge, Louisiana. “They can take the long view and consider how what they pay today compares with the worth over time.”
The Takeaway:
As said in the introduction, we all think that all rich people own huge mansions, luxury cars, and expensive clothes. Because of movies, books, and other sources, we believe that all wealthy people like to spend money one way, whether that is true or not.
So we don’t end up like some people who spend more than they earn, I thought it was necessary to spread some light on the truth behind what rich people spend and don’t spend their money on. Yes, there will be several wealthy people who spend their money on exactly those things listed above, but as for the super-wealthy, they don’t waste their money on the following items:
- Impulse buys
- Extreme inheritances
- TV channels and video games
- Luxury brands
- An over-priced home
- Buying instead of renting
- Expensive grooming
- Multiple credit cards
- Late fees
- Gambling
- Stuff over experiences
- Retirement
- Things that don’t last
For more information, check out the book: All the Money in the World: How the Forbes 400 Make–and Spend–Their Fortunes. Along with that, watch this Brightside video on things 8 things rich people don’t spend their money on. And, for a laugh, check out the 10 dumbest things billionaires own. With so many links being spread, here’s one more: Simple Ways to Save Money.
To clarify, it’s not like wealthy people never buy luxury items. Of course, they do! It’s just that they think twice before buying something and decide whether it’s worth paying the money for. Don’t let this stop you from buying items that you have been wanting for a long time; all this is for is to help you make wise spending decisions!
Remember, money doesn’t buy happiness; it all depends on your mindset and attitude. Don’t let money make you think that you’re better than anyone else, nor let it bring you down. Always stay humble, and decide how you’re going to spend your money. Are you going to spend it all on materialistic things, or help others and use it wisely? Good luck on your journey and I hope this article on things rich people never waste their money on gave you the chance to learn the truth and incorporate it into your own life!