My Net Worth Is Over $1 Million: Here’s Why I Still Limit My Spending
Written by
Laura Beck
Edited by
Molly Sullivan
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For many Americans, hitting millionaire status would be a license to live large and indulge in the finer things. Grey Poupon, anyone? But for individuals like software engineer Gwen B. and small-business owner Michael R., breaching the $1 million net worth milestone hasn’t changed their frugal ways one bit.
Though Gwen’s tech salary and investments have built her a $1.3 million nest egg by age 37, she still adheres to her money-conscious upbringing. And at 52 years old with over $1.8 million from his commercial cleaning company’s sale, entrepreneur Michael embraces a simple, budget-conscious lifestyle despite having “screw you” money.
Both millionaires cite specific reasons for continuing to limit their spending, even after achieving a level of wealth most only dream about.
Maintain Financial Security
“I know from experience how quickly things can go south if you’re not careful,” said Gwen, who grew up comfortably until her parents’ costly divorce depleted the family’s assets.
“Watching my parents go from having it all to struggling really shook me,” she stated. “No matter how much you have, none of it is guaranteed. So I’m religious about budgeting and smart spending to protect what I’ve built.”
For Michael, pinching pennies is about safeguarding his family’s future.
“My wife and I came from nothing, so we know how vital it is to have a financial safety net. Spending without thought is a quick way to put that at risk.”
Avoid Lifestyle Creep
Both Gwen and Michael cited the lure of lifestyle creep as a big reason for curbing splurges despite their millionaire status.
“It would be so easy to upgrade to a massive house, get a couple fancy cars, take insane vacations — basically let my spending shift in step with my net worth,” Gwen said. “But that’s a dangerous path toward recurring costs that could eventually eat away at my savings.”
Michael agreed, having witnessed lifestyle creep sabotage others who came into sudden wealth.
“Once you get a taste of the high life, it’s addictive. The hedonic treadmill just keeps accelerating. I’ve seen so many people go broke chasing that high.”
Leave a Legacy
For Gwen, strict spending is partly motivated by her desire to build generational wealth.
“I’d love to make things easier for my kids, or create a family charitable foundation down the line,” she said. “Splurging too much now only shrinks what I can leave behind.”
Michael, a grandfather of two, echoed that outlook.
“My biggest drive is leaving an inheritance — and not just money. I want to model true financial stewardship so my family knows the value of a dollar.”
Appreciate What They Have
In today’s hustle culture of working hard to accumulate more, Gwen said she’s opting out as best she can.
“Sure, I could buy some fancy Italian sports car,” Gwen said. “But will it really make me happier than my reliable, paid-off SUV that fits my needs perfectly fine? I have everything I want already.”
Respect the Value of Money
Michael didn’t grow up with much money — and so he learned from an early age to respect and value what he did have.
“My parents taught me the meaning of a dollar,” Michael shared. “I know it might sound a little sentimental, but I can’t shake the feeling that spending frivolously would be disrespecting what they taught me.”
Set an Example
For parents Gwen and Michael, modeling smart money habits is an important part of parenting.
“I want my son to understand you don’t have to live lavishly just because you’re able to,” Gwen said. “I hope my actions teach him not to take wealth for granted and appreciate what he has.”
Michael saw his modest spending as instilling key values in his grandchildren.
“If I flash wealth in their face constantly, I’d just be setting them up to be materialistic and entitled,” he shared. “Nothing is worse than a kid who expects everything handed to them. I won’t do that.”
Indulge Selectively
That’s not to say Gwen and Michael never indulge themselves. But their selective splurges tend to be more calculated than frivolous.
“I’m happy to spend on enriching vacations, top education for my son, supporting causes I care about, and occasionally treating myself to something nice,” Gwen said. “But it has to feel worthwhile and have meaning beyond just spending to spend.”
For Michael, any luxury buys stem from practicality as much as enjoyment.
“I love a great bottle of wine or a nice watch. But I only indulge after lots of research to make sure it’s a smart purchase that will last and bring me true fulfillment.”
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