7 ‘Wasteful’ Splurges of the Wealthy That Actually Make Sense
Written by
Laura Beck
Edited by
Rebekah Evans
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It’s easy to roll your eyes at some of the seemingly ridiculous purchases that wealthy people make. After all, do you really need a gold bidet? But, according to financial experts, some of their more spendy buys may actually be wise.
GOBankingRates spoke with experts to find out the seven “wasteful” splurges of the wealthy that actually make a whole lot of sense.
Private Jets
All right, before you start picturing champagne showers at 30,000 feet, let’s talk business. Robert Hodgins, founder of Sand Hill Road Technologies Fund, dropped some knowledge: “Private jets save time and enhance business efficiency.” It’s not just about avoiding TSA lines (though let’s be honest, that’s a pretty sweet perk).
When you’re worth millions or billions, your time is literally money. A private jet isn’t just a fancy toy; it’s a time machine that lets you zip between meetings and close deals faster than you can say “economy class.”
Luxury Real Estate
Sure, a mega-mansion might seem like overkill when a cozy apartment would do. But Hodgins said, “Luxury real estate can appreciate in value, serving as a financial investment.” Aaron Cirksena, founder and CEO of MDRN Capital, backed this up, listing real estate as a smart buy for the wealthy.
But it’s not all about the Benjamins. Todd Stearn, founder and CEO of The Money Manual, got honest about quality over quantity: “The wealthy will generally spend more for a home made of high-quality materials put together by a builder known for their attention to detail and quality craftsmanship.” He added, “Things like high-end flooring, cabinets and countertops and moulding can make a home look and feel more luxurious and quality construction can mean less money spent over the years on repairs, maintenance and even heating and cooling.”
Investing In Your Health
If you like being catered to, nobody does it better than a private cook and your own personal trainer. Hodgins said, “Personal chefs and trainers contribute to health and productivity.” The idea here is that your investing in your most important asset — yourself.
Eric Croak, president of Croak Capital, took it up a notch and said the wealthy is smart to spend their money on excellent health and life insurance. “I think when you hit that ‘wealthy’ label mark, it’s smart to ramp up your protection game with top-notch health and life insurance.” He added, “You’re not just covering yourself — you’re making sure your family’s set if the worst happens.”
High-End Clothing
Before you scoff at four-figure price tags on basic-looking shirts, listen up. Stearn broke it down: “Higher-end clothing, shoes and accessories tend to be higher quality and stand the test of time and many washings better than cheaper ‘fast fashion’ pieces.” It’s not about having a closet full of designer labels; it’s about building a wardrobe that lasts.
“The wealthy tend to buy high-end classic pieces that never go out of style and will work for a variety of outfits and occasions,” Stearn explained. “Think more neutral solids and classic cuts and fewer prints and trendy pieces that could look dated next year.”
Stearn shared an idea if you want the look for less: “A great way to make this concept work on a budget is to shop thrift stores in wealthy areas.”
Lifelong Learning
Dropping serious cash on courses, workshops or even going back to school might seem like a luxury when you’re already successful. But Cirksena said educational courses (such as business or entrepreneurship) are a smart buy for the wealthy.
“High-end education opens doors to significant personal and professional growth,” Hodgins said.
Croak added his two cents: “Investing in your education or self-improvement is always a smart choice, especially for the wealthy. It could boost your income down the line and more importantly, it keeps you engaged and fulfilled.”
Luxurious Mattresses
This one isn’t necessarily the most obvious, but think about it. You spend a third of your life sleeping — why not wake up rested and ready to take on the world?
“The wealthy understand the value of a good mattress,” Stearn said. “They know that the problems a cheap mattress can cause, like poor sleep and back pain, can degrade your quality of life and can become expensive in other ways, like medical bills and lost productivity.”
It’s an investment in your health and well-being — and it also feels darn good.
Charitable Donations
Last but definitely not least, let’s talk about the ultimate “splurge” that actually makes the world a better place. Croak said it beautifully: “Donating to charity is another solid move for the wealthy. If there’s a cause close to your heart, why not support it? Most of us want to make a difference and this is a direct way to do it.”
Cirksena pointed out that it’s also excellent that charitable donations can be a tax deduction. It’s the ultimate win-win: you get to support causes you care about and potentially reduce your tax bill.
Croak shared a pro tip for would-be philanthropists: “Just make sure you choose a well-respected charity. You can use Charity Navigator to check that your money’s really going where you intend it to.”
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