What a Frugal Millionaire’s Monthly Budget Looks Like in Retirement
Written by
Kerra Bolton
Edited by
Jenna Klaverweiden
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A million dollars used to mean you’d made it. Today, it just means you have enough to worry about losing. That’s why many wealthy retirees follow budgets that look surprisingly normal. They cook at home, they plan their trips and they watch the same grocery prices rise as everyone else.
Their advantage isn’t what they earn; it’s how they think about spending in retirement. That mindset is learnable. Here’s what a frugal millionaire’s monthly budget looks like in retirement, according to experts.
Savings Come Off the Top
Financial safety isn’t an accident. Many millionaire retirees continue saving so they have options later when life changes.
Joe Braier, CEO and president of Lake Country Advisors, said frugal millionaires typically direct 15% to 20% of their monthly income into savings or reserve accounts to protect against future risks.
The remaining budget supports essential needs, such as groceries, utilities, taxes and modest travel. Maintaining that habit helps preserve their wealth and their peace of mind over decades of retirement.
Monthly Spending
Many millionaire retirees keep their monthly spending within a clear comfort zone.
“A thrifty millionaire retiree typically exists on $6,000 to $10,000 monthly, variable with the location and lifestyle,” said Sharad Gondaliya, CPA, founder of Gondaliya CPA.
Braier said he saw a similar pattern at the upper end of that range, noting that “frugal millionaires are usually spending between $9,000 to $10,000 per month on average.”
Both experts emphasized that frugal millionaire retiree budgets are built for stability and sustainability, not luxury.
A Third Goes to Housing, the Next to Healthcare
The biggest expenses aren’t glamorous. Housing and healthcare often take priority because stability keeps everything else possible.
Gondaliya said about 25% to 30% of a frugal millionaire’s monthly budget covers housing, such as property taxes, utilities and maintenance, while 15% to 20% goes toward healthcare and insurance.
“Millionaire retirees tend to live far below their means,” he said. “They’re careful with every penny and still focus on investing and passive income in retirement.”
Everyday Costs Stay Ordinary
Wealth doesn’t erase grocery bills or everyday expenses. Frugal millionaires stay wealthy by avoiding money traps that drain the budget slowly.
“What I see in my clients is that they are careful about what they spend, and that makes a big difference,” said Deon Strickland, Ph.D., a financial advisor and an economist at Scholar Advising. “Across clients who are very wealthy and those who are simply wealthy, their spending patterns are not that different. They are not spending a lot on things like cars or dining out.”
Joy Is a Line Item
Joy likely isn’t a splurge for millionaire retirees. It’s a planned category, with a clear place in the monthly budget.
“A lot of retirees today spend their money on experiences,” Strickland said. “It could be travel, like taking a three-week trip from Tuscany to Sicily. Or it could be something else entirely, like going to racetracks to drive sports cars. The key is that these are experiences that bring fulfillment and take advantage of the freedom that comes with retirement.”
They Spend To Protect Freedom
For many frugal millionaires, the goal isn’t to spend more; it’s to spend well. Their budget keeps resources focused on the parts of life that feel meaningful and secure.
“The most important thing is to start saving early and stay consistent,” Strickland said. “Build habits that let you control spending before retirement. Then, in retirement, focus your budget on experiences and relationships rather than status or possessions. The happiest retirees I see are the ones who value the freedom that comes from being thoughtful about how they spend.”
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