While we’ll never have a full picture of what it’s like to live a day in a billionaire’s shoes, we can still learn a thing or two from studying their spending habits.
Understanding the things they won’t waste money on, for example, can shed light on how they choose to allocate their wealth and give us some insights into how we might spend our own. Below are some examples of things they won’t put their money towards.
Credit Card Debt
Billionaires are financially savvy beings and know that credit cards often come with high-interest rates, especially if you carry a balance from month to month.
They also understand the concept of opportunity cost — which means they see the money spent on paying off credit card debt could be better used on things like investments that generate returns.
In a time when Americans owe nearly $1 trillion in credit card debt, it’s a good lesson to keep in mind.
Using your credit card responsibly can ensure you don’t fall into this trap of high interest rates. Remember to always pay your credit card bill in full and avoid using it for everyday expenses if you can’t pay off the balance in full.
For many of us, it’s hard to resist the allure of those impulse buys at the store or while online shopping, but for billionaires this is a no-no.
They tend to have a longer-term view of their wealth and approach financial decisions rationally and methodically, avoiding emotional or impulsive behavior when it comes to their money. Instead of spending on frivolous items, billionaires often view their money as a means to invest in businesses, real estate, stocks, and other assets.
While impulse buying can be a challenging habit to kick, it’s possible to reprogram our mind to avoid this behavior. When you feel the urge to make an impulsive buy, for instance, give yourself a cooling-off period where you wait at least 24 hours before purchasing.
For many, wearing designer clothes can be a symbol of social status and success, signaling affluence and elitism. But for billionaires, simple and moderate clothing outweighs luxury.
Facebook creator Mark Zuckerberg, for example, is often seen comfortably wearing plain T-shirts rather than splurging on high-end brands. The reasons will often go beyond finances.
“It seems that if you dress up too much, you run the risk of not being taken seriously,” said Erica Zidel, a Seattle-based Web entrepreneur who attended Harvard around the same time as Zuckerberg.
Given that fashion trends change quickly, and what’s considered stylish today may be outdated in a matter of months, investing in expensive designer wear is often considered wasted money for the ultra rich.
The money you spend on designer clothes could easily be put toward more meaningful use like saving for important life goals, travel experiences, or supporting charitable causes.
Low-Interest Savings Accounts
Traditional savings accounts are another thing billionaires won’t waste their money on. Even though they can seem like a safe place to store away funds, they offer very low interest rates, which won’t keep up with inflation.
Billionaires are always seeking to grow their wealth by investing in things with high returns.
You can follow their lead by opting for putting your money elsewhere. Online banks offer better alternatives with high-yield savings accounts that give a much higher return on your savings over time.
Billionaire Warren Buffet reportedly still lives in the same home he bought for $31,500 over 60 years ago. This mindset applies to other money moguls who prefer to diversify their investments in a more balanced portfolio of stocks, bonds, real estate, startups, and other assets.
High-profile billionaires also value their privacy and safety which is hard to maintain in more opulent, easily identifiable homes — choosing instead to live in more discreet properties to protect themselves and their families.
Low Quality Food
Author Tom Corley spent 5 years writing about the lives of the mega rich and found they all shared one attribute in common: they didn’t waste money on processed or packaged foods.
Instead, they preferred investing their wealth on products that could be sourced to their place of origin. They opted for buying from farmers’ markets and grocery stores that were known for high quality produce and meat.
By investing in fresher, more organic, and nutrient-rich options, billionaires prioritize clean eating as a way of maintaining good health and longevity.
While we don’t have access to the same fortune, we can still make it a point to focus on buying foods that offer a higher nutritional value like fresh fruits and veggies, lean meats and whole grains.
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