5 Expenses Wealthy Millennials Never Eliminate From Their Budgets
Written by
Cindy Lamothe
Edited by
Molly Sullivan
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When it comes to spending, it’s important to forego certain luxuries in the name of planning for the future. But there are certain expenses that wealthy millennials will never eliminate from their budgets. Whether for health reasons or personal aesthetic, there are some things they refuse to budge on.
“Generally speaking, the different generations in modern America do not share similar viewpoints on the world,” said Dan Kroyter, finance expert and CEO of Tailored Pay.”There may be no better example of this than the millennial approach to personal finances.”
Below are some expenses wealthy millennials never eliminate from their budgets.
High-End Gym Memberships and Personal Trainers
“From my experience, wealthy millennials prioritize health and fitness, investing in exclusive gym memberships and personal trainers,” said Justin Godur, finance advisor and founder of Capital Max.
“They value personalized fitness plans and the luxurious amenities offered by high-end gyms, which provide not only a status symbol but also a tailored approach to their well-being.”
Joshua Katz, founder of Universal Tax Professionals, noted the same.
“Many affluent millennials invest heavily in premium fitness memberships and are totally obsessed with them,” he explained. “These aren’t your typical gym memberships but rather access to exclusive fitness clubs, boutique studios, and specialized wellness programs.
“Elite memberships at high-end establishments like Equinox or specialized fitness programs such as SoulCycle can be significantly more expensive than standard gym options.”
He said the primary reason behind this expenditure is that wealthy millennials prioritize health and wellness, viewing it as essential to their lifestyle and overall well-being.
“These premium memberships offer more than just a place to work out; they provide a community, a status symbol and access to cutting-edge fitness technology and personalized training.
“The perceived benefits of improved health, social connections and the prestige associated with these memberships justify the higher cost for this demographic.”
Premium Car and Health Insurance
“Despite the availability of cheaper options, I’ve noticed that wealthy millennials often opt for more expensive car insurance policies,” Godur said.
“They appreciate the extensive coverage and peace of mind that premium policies offer, ensuring protection against potential risks.”
He noted this is especially true for those who own high-value vehicles, where comprehensive insurance is a necessity.
John F. Pace, CPA and tax manager for Pace & Associates CPAs, shared a similar opinion.
“Luxury car insurance is often regarded as non-negotiable,” he explained. “Instead of opting for the cheapest option, they prefer comprehensive coverage that offers more than just basic protection.
“In a past case, a client chose an insurer that provided additional benefits like full replacement cost, roadside assistance, and coverage for custom parts and equipment,” he said. “This made sense as it aligned with their overall investment in lifestyle quality and ensured minimal disruption in the event of an accident.”
Along the same vein, Pace said the same goes with investing in premium health coverage.
“I’ve worked extensively with high-net-worth individuals, including wealthy millennials. One expense they never cut from their budgets is premium health insurance.
“Despite being healthy, they value top-tier coverage for peace of mind and access to the best healthcare.”
Pace added that this is especially true for millennials who travel frequently or engage in high-risk hobbies.
“For instance, a client who loves scuba diving insisted on a policy that includes emergency evacuation and specialized medical care, even though it’s significantly more expensive.”
Luxury Travel Experiences
“When it comes to travel, wealthy millennials don’t settle for the ordinary,” Godur said. “They are willing to spend on luxury travel experiences, such as private jets, five-star hotels and bespoke travel itineraries.
“The desire for unique, curated experiences and exceptional service drives them to invest in premium travel options, creating unforgettable memories.”
Designer Clothing and Accessories
“Fashion is another area where wealthy millennials don’t compromise,” Godur continued.
“Investing in designer clothing and accessories allows them to express their individuality and status. From my perspective, this group values the craftsmanship, exclusivity, and brand prestige associated with high-end fashion, making it a worthwhile expense.”
As a finance advisor, he said understanding these spending habits is crucial for tailoring financial advice and services to meet the unique needs of wealthy millennials.
“By recognizing their preferences for quality, exclusivity, and personalized experiences, financial advisors can better serve this affluent demographic.”
Professional Financial Planning
According to Pace, another expense millennials refuse to cut is professional financial planning and investment management services.
“Many wealthy millennials understand the importance of growing their wealth and protecting their assets,” Pace said. “They willingly pay for expert advice to navigate complex financial landscapes, including tax-efficient investment strategies.
“For example, one Forbes 400 family I worked with ensured their millennial heirs had access to top-tier financial planners, which helped them effectively manage trusts and private foundations while optimizing tax obligations.”
Overall, Pace said wealthy millennials prioritize the above expenses because they provide not only tangible benefits but also peace of mind, allowing them to focus on wealth generation and lifestyle enjoyment without unnecessary concerns.
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