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Over the course of five years, I studied and interviewed 233 millionaires to learn about how they think, and also to understand the habits that helped them build their wealth.
All of the millionaires agreed that what they didn’t spend money on was just as important as the things they did spend money on.
Here are five things millionaires stopped spending money on, after they got rich.
Low-quality products and services
The millionaires in my study refused to drop money on the latest fashion fad. They preferred to invest in timeless, quality pieces for their wardrobe that last a long time.
They also never purchase low-quality furniture or appliances because they knew that they would just have to spend money to replace or repair them.
They also won’t buy low-quality food. They go for healthy, organic, and even locally-sourced produce. Farm markets are a particular fan-favorite of the wealthy.
Lottery tickets and gambling
The rich don’t need to buy lottery tickets or gamble in order to create a life of their dreams because they are already living that life.
One of entrepreneur-millionaire’s in my study owned several businesses, which included the first business he started when he was in college – a very successful landscaping business. Every Friday this millionaire would hand out paychecks to his landscaping employees. He took notice that several of his employees would immediately cash their checks and head over to a convenience store. Curious, he followed them one Friday and saw three of his employees spending their hard-earned money on lottery tickets. The millionaire, who never gambled or played the lottery, was dumbfounded at this very poor habit.
Extended car warranties
Extended car warranties are a form of insurance that increase your monthly car payment. The purpose of warranties is to help cover any expensive repairs that might be required on a car. Once they became wealthy, the millionaires in my study never again purchased warranties as they could afford expensive repair costs and were willing to take the risk that those repairs wold not be needed.
Old roofs, cars, washing machines, dishwashers, refrigerators and furnaces often need repairs that could be expensive, due to simple wear and tear. Because wealthy people have the means, they would rather spend their money on replacing, rather than repairing, something that is old and in need of repair.
Most of the millionaires in my study could self-fund purchases of their homes, new cars, college costs for their kids or major appliances. Thanks to their wealth, they no longer needed to obtain loans and pay interest on those loans.
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.”