While millionaires can afford to buy most things in the world, they are very frugal in their spending. Millionaires hardly buy things that won’t give them returns. Warren Buffet, Berkshire Hathaway CEO and the world’s eighth wealthiest person, once said: “If you buy things you do not need, soon you will have to sell things you need.”
In this article, we will take a dive into 10 things millionaires do not spend money on and also the things they buy for fun.
10 Things Millionaires Do Not Send Money On
While gambling can be a fast way to lose money it can as well be a fast way to become a millionaire. Over the years gambling has been gaining traction all over the world. However, it has made some people rich while some have lost their money. But the truth is, millionaires don't spend their hard-earned money gambling.
Even though there is no need for millionaires to engage in gambling to acquire more wealth, some of them wait for the jackpot time after the low-income people have spent every penny in the entire process. It is at this point that some millionaires spend money on gambling for fun unlike the less fortunate who depend on it to become rich.
2. Luxury Brands
In as much as millionaires can afford luxury brands ranging from technology to fashion, they rarely spend their money on this stuff. You will also notice that many billionaires like Mark Zuckerberg wear simple clothes. This might sound ridiculous. Right? But that is the hard reality.
It might surprise you to know that Bill Gates still wears his old-time watch worth $10 while he can buy a couple of Rolex watches. However, you may find some millionaires wearing expensive brands. But if you do a follow-up, you will find out that they own the company or have a partnership with the company dealing with the wearables.
Read also: Things millionaires buy for fun.
3. Luxurious House Rent
When the majority of people start to earn a considerable income, they tend to rent luxurious houses instead of buying one. It is not the case with millionaires. A majority of them bargain for overpriced homes like the average person.
Other millionaires opt to buy a piece of land and build a home instead of buying an extravagant house. For example, Warren Buffet lives in a house worth $31,500, that he bought back in 1958.
4. Extravagant Inheritances
Most people live their entire life accumulating wealth that they will leave to their children and grandchildren so that they won’t have to struggle as they did. Well, that’s not so with millionaires. Billionaires like Mark Zuckerberg and Bill Gates say that their children would rather find their way than depend on inheritance. Meanwhile, both of them are giving out sizeable shares of their wealth to charity instead.
5. Classy and Expensive Grooming
The other thing millionaires do not spend money on is classy and expensive grooming. It might shock you to find out that some of the millionaires go for a normal price for their wearables like in the supermarkets. No one loves to be ripped off their hard-earned money while there is an alternative.
Read also: How to look rich without being rich.
6. Gaming Fees
Many people think that millionaires just sit down and play games. While some of them do play games for fun, it is just for a few minutes. However, millionaires tend to pay for expensive VIP reserves together with their colleagues in the stadiums to watch their favorite teams play.
However, millionaires spend their money on taking their families out once in a while for recreational purposes and bonding, away from busy work schedules.
7. Late Fees and Penalties
Late fees can accrue to a fortune, and that is why many billionaires use auto-pay services in their various accounts from car payments, insurance, credit cards, and mortgage payments. By embracing this automation, they avoid being hit by hefty penalties and high-interest rates.
8. Multiple Credit Cards
It might seem like having multiple credit cards is safe for millionaires, but it is not so. A huge percentage of millionaires use a single card to avoid interest rates and other credit card fees. It also helps them avoid the temptation of spending on unnecessary things.
9. Retirement IRAs
While the majority of the average person invests money in Individual Retirement Account (IRA) or 401k, millionaires don’t budget for retirement. Self-made millionaires want to work through their retirement years. For example, Warren Buffet, one of the most successful investors in the world is still the chairman and CEO of Berkshire Hathaway at age 91.
Read also: How to achieve financial freedom in 5 years.
10. Impulse Purchases
Some of you might have gone to a supermarket to buy single stuff but eventually, you come out with a cart full of items you had not budgeted for, especially when there is a flash sale. Well, this is not common with the majority of millionaires as they work on a budget. To avoid overspending and impulse buying, millionaires budget and carry a predetermined amount in cash to avoid impulse purchases. Besides, there are specific places where rich people shop.
Summary: 10 Things Millionaires Do Not Spend Money On
While millionaires can spend their money almost on anything in the world, they are very frugal in their spending. Their success is based on their ability to manage wealth. Although they are very keen on spending, they are things that millionaires spend money on for fun like going on vacations, private jets, and quality education for their kids.