27 Surprising Things Millionaires Never Waste Money On

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To become a financially successful person, one might have to try a bit hard at first, but soon things become second nature. In short, rich people just learn ways to save and grow their money with a very small pain. If being wealthy is that easy—that making all those right decisions—why wouldn’t you do it? In this article, we’ll share the secrets that the rich use to save their money and stay successful. You don’t need to turn your life around, just adopt a few smart habits. Read on to find out how millionaires avoid wasteful spending while keeping their wealth. Here are 25 things rich people never waste a dime on.

27. Overpriced Technology Upgrades

Many millionaires know better than to get caught up in the cycle of constantly upgrading to the latest tech gadgets. Take the iPhone, for example—while the newest model might come with some cool new features, smart spenders realize that these changes are often pretty minor. Instead of jumping to buy the latest version every time it comes out, they stick with their current device until they really need an upgrade—like when it’s no longer working well, or it can’t support new apps or software. This simple habit helps them save money and put those funds toward investments that actually grow in value, unlike a phone that’s going to be outdated again in a year.

For instance, the differences between an iPhone 12 or iPhone 13 and the newest iPhone 15 are often small for most people. A millionaire might ask themselves, “Do I really need this new phone?” and, more often than not, they’ll keep using the one they already have unless the upgrade makes a big difference in their life. It’s not about denying themselves nice things—it’s about making thoughtful choices. By skipping unnecessary upgrades, they avoid wasting money and focus on purchases or investments that truly benefit their future.

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26. Credit Card Interest

Credit cards sure are convenient, but the convenience can be a financial trap if misused. But with such a valuable tool, the wealthy actually do avoid getting zapped by high credit card interest because they know it sucks your money away. Instead of running up interest charges, they use strategic options to stay in control of their finances. One of those strategic moves is transferring or consolidating debt onto a credit card with a 0% introductory APR. Just remember to pay it all off before that promotional period is over, so there are no fees.

Henderson financial adviser suggests an alternative : take your non-deductible debt and roll it into a second mortgage, or a home equity line of credit, both of which can be deductible under some circumstances. And maybe even more importantly, when you’re debt free, learn to live within your means. Finally, Henderson points out, by saving consistently for the future you will accumulate wealth over time without incurring high-cost credit card or other expensive debt. High net-worth individuals are focused on wealth creation rather than the payment of interests. So should you be.

25. Low-Interest Savings Accounts

If you’re still using a traditional savings account to stash your cash, you may be missing out on one of the biggest opportunities for it to grow. While such accounts offer security and easy accessibility to your money, they don’t bring much interest at all. The average national interest rate for savings is an abysmal 0.06%. In comparison, alternatives do exist where high yield savings accounts only the rich know about are shopped smarter.

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Online-only banks and credit unions more frequently offer much better interest rates than the traditional variety, because they have so much less overhead. For example, in a survey by GOBankingRates, it was found that some credit unions offer as high as a 7% APR on savings accounts. Consider moving your money from a simple savings account to a high-yield one to make your money grow faster if you want to be wealthy. It’s one of the many small adjustments that can make a big difference over time.

24. Retirement Rip-Offs

Even seemingly small fees, like a 1% charge on a 401(k), can take a significant bite out of your retirement savings. According to Garrett Gunderson, founder of Wealth Factory, a fee as small as 1% can reduce your retirement balance by up to 28%. Retirement plan fees often include administrative charges, legal fees, and marketing fees, such as 12-b-1 fees. On top of that, there are expense ratios for fund managers, which can add up even if the fund doesn’t outperform a low- or no-cost index fund.

To avoid these costly fees, carefully review the fee disclosure statements for your 401(k) or any other retirement plan. This can help you identify unnecessary fees and consider switching to a lower-cost option. Over time, reducing these fees can significantly boost your savings. One of the biggest retirement mistakes people make is overlooking the impact of hidden or unanticipated costs on their long-term wealth.

By keeping an eye on these fees, you can ensure you’re getting the most out of your retirement savings.

23. Bank Fees

The rich do not let the bank charges take part of their money while it can simply be avoided. A 2016 CNNMoney analysis found that just the three largest banks in America — JPMorgan Chase, Bank of America, and Wells Fargo — took in more than $6.4 billion from ATM and overdraft fees. For example, most banks charge some accounts with maintenance fees on a monthly basis, which could accumulate to a large amount. It is really very easy to avoid these fees when you know the system.

For example, a Bank of America Core Checking account does have monthly charges of $12, but all you need to do to not pay them is fulfill some easy conditions. Maybe this means keeping an average daily balance or making a direct deposit over a given minimum amount — but all of this requires just being strategic with your banking. Rich people make these smart choices, and so can you.

22. PayPal Subscriptions

However, buying things online using PayPal might result in some surprise monthly charges, especially when signing up for memberships or subscriptions. As certified financial planner Steve Wang explains, this all goes back to the fact that PayPal isn’t your main bank account, so you might not notice these recurring charges. So many businesses out there take advantage and just keep charging you until you cancel actively.

And these ‘small’ payments are able to slowly but surely siphon money out of your account over time. Wang advises: ‘Revisit your PayPal payment history occasionally.’ All you’ll probably see is a charge you don’t remember—that would be a subscription payment. PayPal has a separate page in the settings with an intuitive interface, where all automatic payments may be controlled and canceled. If you would not like to save yourself from non-desired expenses, then look into your PayPal account from time to time: some forgotten recurring fees may pop up.

It’s an easy and, at the same time, one of the very effective ways in which those tiny charges can drain your budget away by taking care of all the transactions made on PayPal.

21. Lottery Tickets

​​Among the worst of all methods to attempt to build wealth : playing the lottery. That means it’s virtually like throwing money down the drain, since 1 in 292 million are your odds of winning the grand prize with Powerball. Those small sums put on lottery tickets become rather sizable when done with regularity. For instance, if someone spends money on two tickets twice a week throughout the year, he will be losing more than $400 by the end without gaining anything in return other than those slim chances. We see these pitfalls, avoid them, and do things that make more sense with our money.

According to Henderson, the lottery is something low-income people play constantly. Higher-income earners only really play when the jackpots are extremely huge and media interest is high. Instead of wagering your future, put logical investments into assets building wealth for the long haul. Rich people compound their money through smart choices, not through lottery tickets.

20. Late Fees

Financially successful people steer clear of late fees that slowly seep away their account balance and hurt their credit rating. That’s in just one year, according to The Motley Fool; in 2016, credit card companies collected $12 billion in penalty payments alone due to late fees. Even if you pay off the full balance on your card each month, you’re still in for an expensive penalty if you pay late, and that fee adds up over time.

Nearly every bill you pay—utilities, rent, credit cards—carries a procrastination penalty. Just think of how much more you could be saving without those late charges. Savvy savers don’t incur these expenses by paying their bills automatically. If you’ve ever asked, ‘How do I get rich?’ the answer is to start by automating your payments so you can easily skirt the late charges and penalty rates. A small change, but one that can make a big difference to your finances.

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19.Luxury Cars (Unless It’s an Investment)

While millionaires can easily afford luxury cars, many of them actually choose not to splurge on high-end vehicles unless there’s a good reason—like it being a smart investment. Cars, in general, lose value the moment you drive them off the lot, and wealthy individuals understand this. Instead of dropping loads of cash on a flashy car just for appearances, they often go for reliable, practical vehicles that get the job done without the hefty price tag. It’s not that they can’t buy luxury cars; it’s that they prefer to invest their money in things that grow in value, rather than things that quickly depreciate.

That said, some millionaires do buy luxury or classic cars, but only when they know it could actually increase in value. A rare Ferrari or a classic Porsche, for example, can become a collectible that’s worth more over time. In these cases, the car isn’t just a toy—it’s an investment. The key is that wealthy people don’t see luxury cars as status symbols to show off; they only make the purchase when they know it’s a smart financial move that could pay off later.

18. Inflated Interest Rates

A better credit score may result in paying many thousands less in interest for a mortgage, car loan, or other form of credit. In fact, as of April 2017, the average FICO score in the US has hit an all-time high of 700. People who have money and are successful understand that it’s important to have a great credit score because this is part of what determines the rates you pay. A good score can translate into savings of hundreds, or even thousands, of dollars over the life of a loan, while a bad score can literally cost you in inflated rates—or leave you out in the cold completely.

To keep good credit, wealthy people are likely to value the importance of on-time bill payment, rectifying mistakes in their credit reports, and maintaining low levels of debt. If you have a halfway decent credit history and are carrying a balance, give your credit card issuer a call to request a higher limit. This reduces your credit utilization rate, so there’s a possibility it could bump up your score. Might as well ask if they’ll lower your rate at the same time; the less money you’re sending in interest payments, the more will go toward paying down your balance. Wealthy people understand that high interest rates can be avoided with some financial intelligence.

17. Extended Warranties

We’ve all been there. You buy a flat-screen TV and, next thing you know, someone is trying to talk you into an extended warranty. Most financial experts, including Dave Ramsey, say that the rich generally don’t even bother with these offers. All arguments aside, though an extended warranty sounds like it would provide extra protection, very seldom do they offer value for your dollar. Rather, they tend to simply bloat retailers’ profits, with Consumer Reports noting that stores keep about 50% or more of what you pay for these warranties.

Successful people avoid this cost by researching big purchases. They know that most products come with a warranty from the manufacturer that is good enough, and extended warranties are usually useless. So before you buy an extended warranty, check what the manufacturer covers, as you might just find that it covers more than you expected. Also compare what it might cost you for out-of-pocket repairs to the cost of an extended warranty. Most of the time, forgoing the extended warranty is the wise financial move.

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16. Luxury Homes

The rich don’t invest in lousy real estate because they realize that not all properties are bound to appreciate. Consider the case of billionaire investor Warren Buffett. He still lives in the Omaha, Nebraska house he bought for $31,500 in 1958. Although he did splurge on a vacation home back in 1971 when he bought one for $150,000 in Laguna Beach, California, and in 2017 he put it on the market for $11 million, thereby potentially netting himself a profit of $10.85 million. But not everyone will be as lucky as Buffett is regarding real estate.

Author and entrepreneur Tony Robbins believes that, for Millennials, property should be thought of as an income engine rather than just somewhere to put down roots. Real estate can generate its own wealth if you approach it strategically. Consider, for example, Robbins’ Namale Resort and Spa in Fiji. That’s not just a vacation destination—it has a great revenue stream, charging between $1,244 and $2,500 a night for an all-inclusive stay.

The point is that the wealthy invest not just in real estate, but wisely in real estate that generates them income, and stay away from illiquid deals that leak wealth.

15. Expensive Brand-Name Clothes

While it is true that designer labels connote riches, many affluent people have no desire to fritter away their money on costly luxury brands for every purchase. Despite the fact that they could buy qualitative attire, they know and understand quite well that expensive does not always mean better. Financial expert Leslie Tayne shares, ‘Financially successful people compare shops and understand the importance of both quality and cost.’ They may buy a less expensive item or select key high-quality pieces from less expensive stores so that they can make the smartest financial decision.

So what do wealthy folks wear? Well, it varies all the time. For instance, ex-First Lady Michelle Obama used to dress in the best of designer attire, but she also wore Target attires when her husband was in office. If you’d love to emulate the rich spending lifestyle, ask yourself if that $200 jeans pair from a designer outlet is something you should spend on or if that average $30 one from a discount store will do as good. Shop smartly: Go with a sense of what you are going to buy and how much you are willing to spend, not looking for labels to decide how you are going.

14. Extravagant Inheritances

Many affluent families support their children’s education and housing but do not tend to consider it a value to leave them substantial material heritage. According to the poll conducted by Personal Capital, only 18% of wealthy parents with assets of over $500,000 would prefer to pay the rent for their children in full, and 14% are prepared to provide assistance in buying a house. Nevertheless, most of the wealthy individuals would not provide lifelong maintenance for their children.

This is considering the genre where most millionaires and billionaires have pledged a large percentage of their money to be passed on to some charitable causes and thus do not give it all to their children. For example, Bill Gates plans to leave the greater share of his fortune to the Bill and Melinda Gates Foundation rather than to his three children. At the same time, Facebook founder Mark Zuckerberg and his wife Priscilla Chan pledged to give away 99% of their shares in Facebook to charity within their lifetimes — although that is while raising two daughters.

Wealthy families are attempting to establish a tradition of giving more than a transfer of large amounts to the next generation.

13. Video Games and Televisions

Adults in higher income households also tend to spend much less time in front of screens compared to lower-income counterparts, especially when it comes to video games and TV. If anything, 2015 Nielsen data showed that adults in homes making less than $25,000 a year played video games for an average of 42.22 minutes each month whereas those in homes making over $75,000 played just 17.58 minutes of video games monthly.

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The trend is not dissimilar in the case of television: an adult in a lower income household would, on average, have been watching live or recorded TV for 211.14 minutes per month, compared to just 113.42 for an adult in a higher income one. That’s over three 30-minute TV episodes that richer people spent doing something more worthwhile with their time. If that’s what you want to follow in the effective and successful people, cut down on screen time to do more of results-producing activities that can in any way develop you personally or financially.

12. Impulse Purchases

We’ve all felt the pull of impulse buying; going into the store for one or two items and coming out with a cart full of stuff that we really hadn’t intended to buy. Be it a special offer or spending more than we should, impulse purchases are not generally seen as the behavior of the wealthy. For the most part, the affluent are calculated planners, and shopping with no rhyme or reason doesn’t fit into their financial game plan.

Become more purposeful with your spending. Leslie Tayne, author of Life and Debt, counsels using cash to help control impulse purchases. ‘Use the envelope system and bring only a predetermined amount of money to each store,’ she advises. In that way, you are likely to be on budget, preventing any desire to overspend. To the point, even Warren Buffet values thinking and, if needed, even the exercise of reflective spending. He has famously been quoted as saying, ‘I insist on much time being spent, almost every day, to sit and think. I do more reading and thinking and make fewer impulse decisions than most people in business.’

Therefore, the takeaway from this would be to plan in advance and never make impulsive purchases—a habit of successful finances.

11. Autopay Services

Although autopay can simplify your finances, it can also make it almost too easy to lose track of where your money is going. Paying bills automatically may seem convenient because you’ve got them ‘set it and forget it,’ but that approach can help disconnect your spending habits. Without making a point to actively monitor your account, you very well could be in trouble if more money is flowing out than coming in.

We see that this class of people is diligent in tracking the transactions they make. By paying with hands and tracking their expenses every month, wealthy individuals enable themselves to control the outflow. People who are successful financially often write everything that was spent in a month so that they can set a budget for themselves, enabling them to trace and limit expenses. Without this level of awareness, over-spending becomes more likely, setting up financial troubles in the future.

In other words, being intentional and deliberate about what your money is doing can save your financial stability from the pitfalls of autopay.

10. Cable Costs

Cable TV providers often boast of keeping prices low, but then proceed with hidden charges such as for broadcast networks or sports channels, which quickly jack up your bill. Those costs add up, but the good news is that most cable companies are willing to negotiate. Garrett Gunderson, founder of Wealth Factory, reports that he was able to reduce his cable bill from $270 a month to $100 just by calling to cancel and haggling.

If you feel like your cable bill is spiraling out of control, look deeply into what, exactly, you are paying for. Pinpoint the stations that you consistently watch and those that you don’t. Renegotiate a package that is tailor-made to your viewing habits. You may also be paying for some extras that you do not need; for example, you might be paying rental fees for boxes or modems when you should just buy your own equipment and recoup your investment within a few months.

A good way to cut down on expenses and not on what you enjoy watching is through negotiation or reduction of non-essential services.

9. Prepaid Cash Cards

It may sound like the greatest idea for a newbie in a distant land, but mostly these have not-so-obvious costs. ‘Almost all prepaid cards come with activation fees, swipe fees, or monthly maintenance fees,’ says Steve Wang, a certified financial planner. That all seems like not very much at first, but after some time, they could start to pile up and chew into your funds.

If your preference is definitely the prepaid card, by all means, watch out for those that have no fees; most of them. Wang says one should use the card only when absolutely necessary and make sure you’ve read the fine print and understand just how much it might cost in fees. Prepaid cards won’t be seen as a daily support for the payment of bills from people who are wealthy, and perhaps rightfully so. If you must use one, then make sure you’ve done your homework to avoid paying unnecessary fees.

Not paying all of those extra fees on prepaid cards is one smart way to keep a few extra dollars in your pocket.

8. Overdraft Fees

Overdraft fees are the good kind of fee: avoidable but for a good price. You overdraw, and you might get hit with over $30 in fees. As financial expert Drake shared, there’s a way to avoid that. You can set alerts up with your bank that will let you know if your balance is getting low.

Another option is to decline overdraft protection. This means your debit card will be declined for a purchase that’s more than what you have in your account, so you can’t accidentally overdraft. Plus, most banks will extend a grace period or waive an overdraft fee once a year if you call them up and ask. Monitor your balances, and use all these features to avoid stupid fees.

Successful people do not pay such fees because they are always aware of what is happening with their finances; so can you. Small solutions, like alerts or opting out of overdraft protection, go a very long way in keeping you financially healthy.

7. Rich People Use Cash or Checks

Credit cards, as it turns out, are not the preferred method of tender for high-net-worth individuals and stealthy savers. Previous research has demonstrated that people shell out a lot more when forking over with credit cards than if they used cash. According to Gallup, the average cash transaction is $22 and for non-cash payments it’s $112! What that significant difference shows is how using credit can encourage some to overspend.

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Cash, or even worse, a check — it takes so long to process that brain delay is often enough to keep you from making the purchase. Just add those in the cash envelope and also that will give you a guideline to stick on when spending. Set aside an earmarked amount of cash for discretionary spending and keep it in your wallet, drawer, or envelope. When the money’s gone, you have reached your weekly/monthly limit.

This will help you to limit expenses and is a very disciplined practice among many financially secure people. If you use cash or checks, you will more than likely spend less and stay within budget.

6. Saving Over Spending

This habit may seem like a no-brainer, but prioritizing saving over spending is one of the richest-oriented habits. Consumer finance expert Andrea Woroch says, “Instead of rushing to spend they first pay themselves by putting savings into a retirement account or other self-directed savings account.” It may not seem gratifying because you don’t have the cash in your hands, but months or years later, seeing how much you’ve saved up is a decent compensation to not having to worry about debts.

Rich people understand the importance of saving for your future, in particular your retirement. They work to make sure they have a pension that can support them for the rest of their days. Move saving up the priority list before any spending spree, and make sure you are putting enough money aside to your budget for other expenses like bills, groceries, and the rest of the essentials.

This is a very sensible and thoughtful way to save money; it also guarantees you have some financial security for the future. This is one of the things rich people do with their money that allows them to stay rich.

5. Rich People Use Coupons

The rich even search for ways on how to save money, and being moderately frugal really helps them maintain their wealth. Frugal people don’t have too much pride to use a coupon, scour the ads for the best price, or compare all of their options before making a purchase. Rich people do not make impulse buys, and neither should you.

Andrea Woroch adds, “Those who are good savers will consider every purchase and investigate alternatives (buying used products, shopping competitors for better pricing, or using a coupon to bring the cost down).” Moreover, they go through reviews like these to purchase wisely. Use this as an example to download a coupon app and see if you can get one for the next purchase before making it. Every little bit helps, and even the wealthy understand that leveraging their purchasing power can be a very smart decision.

4. Learn How to Reduce Bill Costs

You don’t need to make big changes to start saving on your household bills—small tweaks can make a big difference. For example, simply turning off the lights when you leave a room or unplugging devices you’re not using can quickly lower your electricity bill. Being mindful of water use can also help. Try taking shorter showers and turning off the faucet while loading the dishwasher. Even keeping a water bottle or pitcher in the fridge means you won’t need to run the tap for cold water, which saves time and resources.

It’s also a good idea to check your home regularly for leaks in faucets, dishwashers, or toilets because even tiny drips can waste a lot of water over time. Adding faucet aerators is another smart tip—they cut water usage without sacrificing performance, which means more savings for you. And don’t forget about your light bulbs. Swapping out your old bulbs for LEDs is an easy win—they last longer, use way less energy, and give off brighter light, so your electricity bill will thank you.

All in all, these simple changes add up and can make a noticeable impact, not just on your bills but also in conserving valuable resources.

3. Avoiding Putting Money Away

It’s pretty shocking, but about 56% of Americans are living paycheck to paycheck, which means millions are just one job loss away from financial trouble. Smart savers understand how crucial it is to put some money aside, even though it can feel tough at first. The amount you should save really depends on your personal situation, but most financial experts suggest having enough to cover three to six months’ worth of essential expenses like rent, utilities, food, and insurance.

Being financially prepared can really help reduce the stress and anxiety that come with living so close to the edge. If saving feels hard, it might be a good idea to take a closer look at your spending habits. Figure out what’s truly necessary and where you can cut back. Start small if you need to—even putting away a little can make a difference. Over time, growing your savings will feel easier, and the sense of security you’ll gain will definitely be worth the effort.

2. Splurging

Although it may seem obvious, wise financial managers typically refrain from wasting money on pointless purchases. Rich people concentrate on things that have long-term value rather than constantly chasing the newest technology or taking lavish vacations. Until it’s really time for an update, they’ll either continue to use their present phone or remain in a cozy, affordable motel. They truly understand the value of making prudent purchases and investing in long-lasting items.

When it comes to your personal expenditures, make an effort to prioritize purchasing long-lasting items and avoid purchasing items that depreciate or break readily. Before making significant purchases, it’s usually a good idea to do some research and give it some thought.

1. Rich People Evaluate Wants vs. Needs

Rich people are great at figuring out what they really need versus what they desire, and they frequently create a concise list to help them prioritize their requirements over wants. Comprehending this distinction is essential for economizing and preventing pointless acquisitions. While treating yourself to occasional self-care for mental health is acceptable, overpaying on unnecessary items can result in financial stress, which has a detrimental impact on mental health.

Consider whether a purchase is actually necessary before making it. Do I really need something, or am I just wanting it? Is there more than one usage for this object, or is it only one? In reality, how often will I utilize it? The wealthy did not get wealthy by making unnecessary purchases. Setting needs before wants is an essential