Financial success and wealth accumulation are often the result of hard work, strategic saving, and smart investments. However, there are common spending habits that many self-made millionaires share, which might surprise some.
1. Sports Equipment: Contrary to popular belief, wealthy individuals often avoid splurging on sports equipment for their hobbies or fitness routines. David Ciccarelli, the founder of Lake, prefers to use hand-me-downs or items won in charity tournaments, as he only golfs a few times a year.
2. Financial Advisor Fees: While financial advisors can offer valuable insights, their fees can add up significantly. Jim Wang, Founder of Wallet Hacks, opted to work with a fee-only financial advisor who charges hourly instead of paying thousands of dollars in annual management fees.
3. Gym Memberships: Physical fitness is important, but not all self-made millionaires feel the need to pay for a gym membership. Andy Hill, a podcaster and Founder of MarriageKidsandMoney, prefers to exercise for free with YouTube videos instead of wasting money on gym memberships.
4. Hair Services: Regular visits to high-end salons can be costly. Ange Matthews, a Personal Finance Expert, has learned to style her hair herself through YouTube videos, saving hundreds of dollars on hairdresser visits.
5. Luxury Handbags and Shoes: Millionaires may appear to be adorned with luxury accessories, but some choose to avoid spending excessively on high-end handbags and shoes. Brock and Becky Waterman from the FIRE Travel Family prefer to acquire clothes frugally, often secondhand, rather than buying designer items.
6. Streaming Services: With numerous subscription services available, it’s easy to accumulate multiple monthly fees. Bernadette Joy, a debt-free millionaire, limits her subscriptions to one service providing Asian content unavailable in the US, and uses YouTube for entertainment. She also practices “screenless Sundays” to disconnect from screens and enjoy the real world.
These frugal habits demonstrate that wealth-building strategies often involve mindful spending and prioritizing value over status symbols.
