Tom Corley dedicated five years to studying 233 millionaires, delving into their habits and thought processes. These millionaires hailed from diverse backgrounds and experiences, yet they shared a common trait of having an annual gross income of at least $160,000 and net assets amounting to $3.2 million.
Tom’s primary focus was on understanding their spending patterns. Surprisingly, most of the millionaires revealed that their wealth accumulation was attributed less to their expenditures and more to their ability to cease squandering money on certain non-essential items.
5 Things Millionaires Never Waste Money On:
1. Processed and packaged food
With a focus on their well-being, the individuals made a conscious decision to eliminate low-quality, processed food from their shopping list. Instead, they embraced organic and wholesome options free from preservatives.
Their preference leaned towards products with traceable origins, leading them to explore farmers’ markets and renowned grocery stores recognized for their top-notch produce and meat selections.
2. Low-quality products
They avoided splurging on fleeting fashion trends and cheap, poorly made furniture. Instead, they opted to invest in enduring, high-quality items for their wardrobe and home, designed for longevity.
While these choices often came with a price tag two to three times higher than their low-quality counterparts, they were content with such significant investments. They knew that in the long run, it would prove more cost-effective than continually replacing shoddily crafted items.
3. Major home or car repairs
Similarly, many of the millionaires disclosed that if presented with the choice, they favored spending money on full replacements of items such as old roofs, washing machines, dishwashers, refrigerators, furnaces, and even vehicles, rather than investing in costly repairs.
Despite the higher initial cost, they justified their decision by recognizing that new replacements typically provided much longer-lasting results than repaired items, granting them invaluable peace of mind.
4. Exterior tools and equipment
While a few individuals continued to take pleasure in outdoor tasks like mowing their lawn, weeding, landscaping, and trimming, the majority of them, upon attaining wealth, chose to employ professional landscapers to handle all outdoor maintenance.
By doing so, they freed themselves from the expenses associated with repairing or replacing old equipment. Many of them generously gifted their tools to family and friends.
Their choice to hire landscapers was essentially an investment in time. No longer having to dedicate hours every week or month to property upkeep allowed them to unwind, enjoy leisure activities, and find more time for relaxation and recreation.
5. Lottery tickets
During their wealth-building journey, numerous millionaires steered clear of gambling, and this prudent approach continued into their newfound financial success.
Even after becoming affluent, they remained resolute in not squandering money on lottery tickets, and they encouraged their employees, family, and friends to follow suit.
Recognizing the slim odds of winning any lottery, they considered it a futile expenditure. Instead, they advocated allocating those funds towards creating lasting and meaningful experiences.
Tom Corley is an accountant, financial planner and author of “Rich Kids: How to Raise Our Children to Be Happy and Successful in Life”, “Effort-Less Wealth”, “Change Your Habits Change Your Life”, “Rich Habits Poor Habits” and “Rich Habits: The Daily Success Habits of Wealthy Individuals.”