In honor of missing out on Millionaire Day over the weekend (BLASPHEMY!!), I thought we’d go over some of the frugal habits of the wealthy today and see how we compare :)
I saw FreeMoneyFinance do this over on his own blog the other day, so if you’re wondering – yes, I’m going to totally copy him. Although in all fairness, he did nab the list from my good friend Tom Corley over at RichHabits.net and we were friends first, so….. Nanny nanny boo boo!
Tom spent 5 years tracking the habits of the wealthy, as well as the poor, and then came out with a ton of stats he later turned into books. With his most celebrated one being Rich Habits: The Daily Success Habits of Wealthy Individuals. (You might recall him from our Rich Habits Series over on Rockstar Finance too – I’m obsessed with his stuff!)
Anyways, every day he shares nuggets from his research over on his blog, and recently put out the frugal spending habits of millionaires. Posted below, along with whether my own habits match.
Check them out and see how many you can cross off the list!
(On second glance I realize that most of these pertain to a *minority* of millionaires vs *majority*, haha, but I guess the point is that a ton of millionaires are still fairly thrifty? Even though they’re wealthy?)
8% shopped at Goodwill stores
Same here! You know what they say – once you go used, you can never go new! ;)
20% used coupons
Do online coupons count? I haven’t rocked a physical one in yearrrsssss, but I love my Honey extension – saves me dollars almost every time I click! (Though sadly I’ve run out of all the coupons for domain names… probably a sign to STOP FREAKIN’ BUYING SO MANY!!)
64% said they lived in a modest, middle-class home
Yep! 1,100 square feet, 3 bed 1 bath here…
28% mowed their own lawns to save money
Just did that this weekend! My wife asked if I could teach her how to do it so she “doesn’t have to pester me all the time,” and after I taught her (she enjoyed it!), I made sure to mow the rest of it… I can take a hint ;)
44% only purchased used cars
While I do go back and forth between nicer cars and hoopties, I’ve actually never purchased a brand new car in my life. I enjoy riding in others’ newer cars, but just can’t stomach the drop in depreciation the moment they’re driven off the lot.
19% managed their investments themselves – they do not use financial advisors in order to save money
Yup, same here. I’m not opposed to using advisors (and for some people I’d recommend it!), but now that I literally only invest into one main fund, there isn’t much to manage :) I reckon as our finances get more complicated down the road we’ll be knocking on the door of some planners. If not, at least estate planners (that area is all kinds of confusing).
60% said they were frugal with their money
I’d say I’m about 75/25 on this one. I definitely don’t spend away aimlessly and pick up junk, but I also don’t watch all my pennies or keep convenience at bay. I like collecting my coins and currency, and I like my coffee shops even more!
(This randomly reminds me of my post last year on The 7 Most Mind-Blowing Ways to Save Money E-V-E-R, haha… I think it’s one of my finest :))
81% used credit cards that offered reward dollars — this way they could get something for free
I do rock my USAA Cash Rewards card, however it’s certainly not the best out there, nor do I hack around scoring free points and cash everywhere… I give mad respect to those who can optimize them, but for me it’s one main card and keeping everything as minimal as possible. I can barely keep track of my own two kids, no less dozens of cards!
And lastly, 41% spent less than $3,000 on their annual vacation
I think the last time (only time?) we spent $3,000 on a vacation was on our honeymoon almost a decade ago… It always astonishes me how much people spend for trips, but then again I rarely take one anymore since becoming self-employed so I kinda admire it :) The most we spend these days are a few hundred for a weekend away at a bed and breakfast or so… Still too scared to go away more than a few days with our wee ones – how do parents do it?
But yeah – looks like a ton of millionaires still subscribe to frugality after reaching their financial pinnacles! I guess it helped get them to where they are, so makes sense right? Just like my parents having a hard time retiring because it meant *spending money* for the first time in their lives vs saving it?
See how many you can cross off the list, and then let us know below! Maybe we’ll throw a party for all those who score 100% :) Much more fun than a blog post on Millionaire Day, right??
(May 20th, 2018 – mark it on your calendar!)
Jay loves talking about money, collecting coins, blasting hip-hop, and hanging out with his three beautiful boys. You can check out all of his online projects at jmoney.biz. Thanks for reading the blog!