6 Purchases Quiet Millionaires Never Make, According to Rachel Cruze
Written by
Crystal Mayer
Edited by
Jenna Klaverweiden
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Quiet millionaires are on the rise, and they have money habits that everyone can learn from.
Money expert Rachel Cruze explained in a YouTube video that the stealthy wealthy don’t flash money around. Instead, they plan ahead, avoid marketing traps and live below their means.
Here are six purchases quiet millionaires never make, according to the bestselling author and personal finance guru.
1. Extended Warranties
While the guy behind the counter may tout all of the benefits of buying an extended warranty, Cruze said quiet millionaires don’t waste money on these extra expenses. Instead, she encouraged her listeners to build an emergency fund to help pay for things that are needed.
According to Consumer’s Advisory, extended warranties are usually a bad investment. While they are often highly profitable for the retailer, the reality is that the products generally have a low failure rate or the warranty comes with significant exclusions or limitations.
2. Endless Subscriptions
The next thing the quietly wealthy rarely spend money on is endless subscriptions, according to Cruze. She explained that they are often picky with their subscriptions and may do an “autopay audit” to ensure they are paying only for what they use.
An annual subscription survey by CNET found that the average adult in the U.S. pays over $200 a year on unused subscriptions. In total, Americans spend over $1,000 per year on used and unused subscriptions, with many people paying for multiple services. Auditing these subscriptions regularly can help keep spending under control.
3. Sale Clutter
While some people live for nothing more than a good deal, quiet millionaires don’t fall for marketing tactics, according to Cruze. She explained that they don’t buy things just because they are on sale.
What may surprise many bargain hunters is that sales may not always be sales. As explained in a “Your Money Briefing” episode by The Wall Street Journal, retailers have been sued for deceptive marketing practices by raising the price of an item to a certain amount and then “discounting” it back to its original price.
4. Credit Card Purchases Just for the Points
While credit card points may seem attractive to the average consumer, quiet millionaires don’t base their spending on the potential rewards. As Cruze explained, many of the perks simply aren’t worth it. Trying to figure them out expends significant “mental calories” and may suck a user into a debt trap.
Instead, she noted that quiet millionaires live below their means and usually plan ahead for expenses.
5. Designer Logos as Wealth Symbols
Another trap that quiet millionaires do not fall for is “designer logos as wealth symbols,” per Cruze. She noted that they look for good quality, not just a big logo.
In lieu of buying luxury items to show off their wealth, they focus on how to use their money to make more money.
6. Newly Launched Tech
Lastly, the money expert said quiet millionaires aren’t jumping on the newest tech. Again, they aren’t distracted by marketing tactics. Instead, they use what they have and get upgrades when they need them.
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