Things Wealthy People Never Waste Their Money On
11 Silly Ways Unsavvy People Squander Their Cash
It’s tempting to buy flashy new items when you start making more money — but if you want to build your wealth for the long term, now is the time to reflect on what you actually need and what you could be doing to make your money work for you.
The general impression is that the millionaire next door is either stingy or flashy, but according to Christopher McGlynn, a Certified Financial Planner (CFP) and Certified Private Wealth Advisor (CPWA), the truly wealthy know when to spend and when to save, striking a healthy balance between the two.
“I have observed quietly wealthy folks to be thrifty,” explains McGlynn. “Now, you must understand the difference between thriftiness and stinginess. Stinginess is hoarding every pie you earn, whereas thriftiness is saving money intelligently by fulfilling your needs only instead of splurging money on your wants.”
Shifting your spending habits from trying to look like a textbook “millionaire” to emulating the quiet wealth of the millionaire next door is one of the best things you can do for your finances. Because here's the thing: wealth doesn't come from spending — it comes from smart choices.
RELATED: The Habits of Happy People
“Wealthy people enjoy life plenty, but on their terms. While most people let their money control them, these people flip the script: their money works for them,” adds Alan Andrews, a finance expert at KIS Finance.
Here are 11 things wealthy people never waste their money on — and what you should consider skipping as well.
High-Interest Debt
“I’ve seen wealthy individuals paying off their debts quickly or avoiding them altogether. They prefer to stay away from credit cards and other high-interest debt,” explains McGlynn. “It ensures they do not spend unnecessarily. In addition, they also save on card membership and renewal fees.”
Unused Gym Memberships
“My millionaire neighbor does not have a gym membership, while I have one,” says McGlynn. “It is another matter that I frequently miss my gym sessions. But I have seen my neighbor exercising regularly using his home gym equipment or exploring outdoor activities that don’t require recurring fees.”
Impulse Purchases
Generally, people have a bad habit of making impulsive purchases. But millionaires are not millionaires by accident. According to McGlynn, they avoid impulsive purchases and practice mindful spending on things they need. The extravagant things they want always get a backseat.
Non-Essential Gadgets
How many times have you seen millionaires flashing expensive gadgets? They rarely do because they do not invest in non-essential gadgets. Instead of constantly upgrading to the latest gadgets, McGlynn says they prefer to invest in quality items that last longer and serve a real purpose.
Overpriced Insurance
“While insurance is essential for everyone, the normal individual often spends money on overpriced insurance products,” says McGlynn. “The millionaires, on the other hand, are extremely careful and review their insurance policies to avoid overlaps. They strictly ensure they’re not paying for coverage they don’t need.”
Extravagant Vacations
While millionaires love to travel, they opt for affordable travel options instead of splurging on luxury vacations. They do not like to show off their wealth — and instead, they prefer to invest in experiences that provide lasting memories without breaking the bank.
Luxury Vehicles
Another thing wealthy folks steer clear of is buying brand-new luxury cars. “A car drops in value the moment you drive it off the lot, and they know that money works harder elsewhere,” explains Andrews. “I've had clients with millions in assets driving five-year-old sedans because they saw no point in paying extra for a badge. If it runs well, that's enough.”
Subscription Services
“Wealthy people watch small, recurring expenses too — subscriptions, premium memberships, excessive dining out… A $15 monthly charge seems harmless, but ten of those add up fast,” says Andrews. “I've seen wealthy people scan their bank statements and cut anything they don't use. Not because they can't swing it, but because throwing money at unused services makes zero sense.”
The Latest Trends
Wealthy people couldn’t care less about the latest trends or technology upgrades when what they have works just fine. “No constant tech upgrades, no chasing whatever's hot just because everyone else does. If something works, they keep it. Quality outlasts novelty at all times,” says Andrews.
Lavish Homes
“Millionaire-next-door types don’t stretch their budgets to buy massive, overpriced homes,” says Brian Quigley, founder of Beacon Lending. “They know that a bigger house comes with higher taxes, maintenance costs, and unnecessary financial stress.”
Instead, they buy homes that fit their actual needs and leave plenty of room in their budget for savings and investments. “They understand that real wealth isn’t about showing off, it’s about financial security and freedom,” adds Quigley.
Constant Renovations
“You won’t see self-made millionaires constantly redoing their kitchens just because a new trend pops up,” says Quigley. “They focus on functionality over aesthetics and don’t waste money on high-end furniture or decor that loses value. Instead, they make thoughtful upgrades that add long-term value to their home, rather than chasing trends that will be outdated in a few years.”
High-End Dining and Bottle Service
“Wealthy people who stay rich don’t blow hundreds or thousands on fancy restaurants and overpriced cocktails. They understand that paying $300 for a steak or $1,000 for bottle service at a club is just burning money for the sake of appearances,” says Quigley. “Instead, they enjoy good food in a way that aligns with their values, whether that’s cooking at home, choosing quality over hype, or supporting local spots that offer great value.”
You Might Also Dig:
-
finance
Money