Even the ultra-wealthy have their financial boundaries, as a recent study of 233 millionaires has revealed five common things that they refuse to spend on.
The general public’s idea of the mega-rich is that they’ll spend on anything money can buy. However, it helps to remember that everyone has a threshold—even those with an exorbitantly large amount of cash to burn. In fact, disciplined saving habits actually contribute to the growth of their wealth.
Writer Tom Corley of CNBC recently revealed the five specific things that the rich refuse to “waste” their money on. These results come after half a decade of research and interviews.
Interestingly enough, Corley had initially set out to discover what wealthy figures spend on; however, many of the interviewees were more inclined to discuss what they don’t purchase, as they feel it represents their status more than anything else.
Whether you’re simply curious or want to take a page out of their book, below are five things millionaires won’t spend their money on:
Inexpensive and Poorly-Made Products
The rich usually don’t invest in things that aren’t meant to last. These include fast fashion, badly-crafted and inexpensive furniture, and the like. This may be one of the reasons why so many wealthy figures opt for more premium brands.
Though brand name alone doesn’t guarantee quality, for the most part, companies on the high-end spectrum often set stricter production standards on their processes. Those who can afford these products would rather shell out more than spend on items that they know won’t last. In the long run, this saves a lot of money that would’ve otherwise been spent on frequent repairs and replacements.
“Wealthy people understand that the cheapest route isn’t always the most valuable,” added Peter Bush, a wealth management expert, in a separate statement to Learnvest on the matter. “They can take the long view and consider how what they pay today compares with the worth over time.”
As the old adage goes, health is wealth. To maintain their wellbeing and avoid falling ill (which is a costly scenario all around), many wealthy interviewees stated that they’ve stopped buying packaged and processed foods altogether. Though they’re a lot more convenient, these products come with preservatives and other unhealthy ingredients.
According to Corley, many wealthy individuals would rather purchase organic food whose origins they can easily trace. As such, they often shop in farmer’s markets or grocery stores that sell wholesome, high-quality products.
Outdoor Tools and Equipment
For the rich who own spacious homes and megamansions, purchasing outdoor tools and equipment is certainly not a necessity. Some prefer to do maintenance work themselves, but for the most part, they find it far less taxing to simply hire a professional landscaper for property upkeep.
After all, homeowners will need to replace outdoor tools and equipment at some point, and that’s more additional costs in the grand scheme of things. Corley shared that millionaires do this not only to save money, but also valuable time.
“Since they no longer needed to carve out an hour of two every week or month to maintain their property, it gave them more time to rest, relax or engage in recreational activities,” he wrote.
Most millionaires avoid gambling in order to grow and maintain their wealth. It makes sense, as there’s no point in losing money for the slim chance of earning some if you already have impressive finances. Instead, these wealthy individuals would rather spend on nice experiences, which provide the certainty of pleasure.
Big Home and Car Repairs
Minor renovations and car repairs are all well and good, but when they require a lot more money, many millionaires will simply opt to purchase new.
This is especially true if the cost of repairing things like household appliances and vehicle parts is much higher than simply buying replacements. Not to mention, a brand new item or part is certainly going to last longer than a repair of similar value.
Banner photo by freestocks via Unsplash.