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Tuesday, July 4, 2023

Food and Products

I spent 5 years interviewing 233 millionaires—here are 5 things they never waste money on

By Tom CorleyJuly 4, 2023

Svyatoslav Balan | Getty

I spent five years studying 233 millionaires to learn about their habits and the way they think.

They came from different backgrounds and experiences, but all had at least $160,000 in annual gross income and $3.2 million in net assets.

I was particularly interested in what they spend their money on. But almost everyone told me that what contributed more to their wealth was that they stopped wasting money on certain things:

1. Processed and packaged food

To prioritize their health, they stopped buying low-quality, processed food and instead opted for organic or wholesome foods that did not have preservatives

They often sought out products that could be sourced to their place of origin, and frequented farmers’ markets and grocery stores that were known for high quality produce and meat.

2. Cheaply made products 

They refused to drop money on the latest fashion trends, or inexpensive and poorly constructed furniture. Instead, many preferred to invest in timeless quality pieces for their wardrobe and homes that were built to last.

Often, the cost was two to three times more than the low quality clothing and furniture. But they were comfortable making bigger purchases, because it would still be less expensive than constantly replacing cheap craftsmanship.

3. Major home or car repairs

In the same vein, many of the millionaires told me that given the option, they preferred to spend money on completely replacing things like old roofs, washing machines, dishwashers, refrigerators, furnaces, and even vehicles, rather than putting their hard-earned funds towards expensive repairs. 

While this was often more costly, they rationalized that something new would last far longer than something repaired, which gave them priceless peace of mind. 

4. Outdoor tools and equipment 

While some still enjoyed doing outdoor work, like mowing their lawn, weeding, landscaping and trimming, the vast majority — once they got wealthy — hired landscapers to take care of all outdoor upkeep. 

This meant they no longer spent money repairing or replacing old equipment. Many gave their tools away to family and friends. 

What they were buying was 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

5. Lottery tickets 

Many of the millionaires eschewed gambling as they were building their wealth, and that common sense extended into their new financial lives.

They shared that after they got rich, they refused to spend money on lottery tickets, and would encourage their employees, family and friends to do the same.

Since the likelihood of winning any lottery is slim, they saw it as a waste of money. Instead, it was better to put those funds towards memorable experiences.

"If your actions inspire others to dream more, learn more, do more and become more, you are a leader." - John Quincy Adams