13 Ways poor people waste money but rich people don’t
These are 13 Ways poor people waste money but rich people don’t. It seems like rich people can get anything and everything they want, considering all that money they have! But then why don’t they drop bills left and right buying things that poorer people take loans to get? Well, the purchases that wealthy people tend to avoid might actually shock you!
1. Expensive Grooming.
Rumor has it that the Sultan of Brunei, Hassanal Bolkiah, spends $19,000 on his haircut. Yep, you heard correctly; he flies his personal barber from London to Brunei every time he thinks his hair is a bit too long. The Sultan provides the man with top security and organizes private accommodations for him.
Even if that’s true, most rich people don’t share this approach to grooming. For example, successful businessman and billionaire John Caudwell cuts his hair on his own. And IKEA founder Ingvar Kamprad used to have his hair cut when he was in developing countries.
2. Numerous Credit Cards.
Well, if I had millions, I wouldn’t risk carrying tons of cash in my pockets. I would probably get myself several credit cards from different banks. And that’s what would distinguish me from other rich people. But according to Tom Corley, the author of the bestseller “Rich Habits: The Daily Habits of Successful People,” only 8% of wealthy people have more than one bank card.
At the same time, 77% of low-income earners carry numerous credit cards in their wallets. Don’t forget that the more cards you have, the more fees you need to pay, and the more difficult it is to keep track of your spending. It’s also easier to buy something you don’t really need.
3. Junk Food.
Despite popular myths, rich people don’t eat lobsters and ribeye steaks every day. But at the same time, they try to steer clear of junk food. Most wealthy people nowadays prefer simple and healthy foods. And while many millionaires eat exactly the same veggies, fruit, and cereals as you do, you’ll rarely meet a wealthy person snacking on a hamburger, French fries, or ready-to-eat salads filled with mayonnaise.
The thing is that junk food is high in cholesterol and carbs and low in vitamins and minerals. That’s why, if you eat junk food regularly, it may lead to different diseases. Therefore, it makes more sense to prevent the development of an illness with a healthy diet than to spend a fortune on its treatment.
4. Overpriced Homes.
Even though almost any millionaire can afford a spacious house in a trendy neighborhood, they still search for good deals! Value for money isn’t just empty words for wealthy people, and even if they decide to spend millions on a home, they’ll bargain like anyone else.
Some rich people even go beyond that and choose to live in modest, inexpensive houses. American business magnate Warren Buffet still lives in the house that he bought in 1958 for $31,000. By the way, that’s another thing rich people do: they acquire promising real estate when it’s still inexpensive, and when the price skyrockets, they make a good profit.
5. Fancy Toys for Kids.
Who wouldn’t give in and buy their kid a new toy when the little one is looking at them with pleading eyes? It turns out that such cruel-heartedness is typical for the rich.
Most wealthy people try to stay reasonable and avoid pampering their children. They opt for high-quality and long-lasting toys as well as for something simple. Well, I guess, it makes sense: otherwise, their kids would probably be drowning in gadgets and toys.
6. Personal coaches.
Most life coaches target low-income people who aren’t at the height of their careers. A lot of people have an inherent belief in miracles, and for them, it’s all too easy to think that there is a magic pill which can change their life for the better. Those who organize various motivational courses and self-development seminars are well aware of this fact and use it to their advantage.
At the same time, rich people know from their own experience that to achieve something in life, you need to have a goal and enough willpower to reach this goal. If you aren’t ready for hard work, no motivational speaker will make you successful.
7. Fortune-tellers, mystics, and psychics.
One study published in 2016 claims that people who are fascinated by psychic phenomena have poorer analytical skills than the rest. Two researchers from the University of Chicago interviewed more than 2,000 people online and recruited 100 of the strongest skeptics and believers to conduct a series of tests.
By the way, all the participants were of approximately the same education level and age. Interestingly, believers didn’t have poorer memory skills than skeptics; neither could they be fooled into creating false memories. But on the other hand, unlike skeptics, believers scored worse on thinking tests that required some analytical skills.
And since logical thinking and an analytical mind are some of the most important qualities for achieving success and becoming rich, it’s no wonder that millionaires don’t visit psychics and fortune-tellers. Do you agree with the results of the research? Share your opinion in the comment section below!
8. Trendy Interior Designs at Exorbitant Prices.
New trends in interior design regularly appear in stores, and some people rush after fashionable home items, not wanting to fall behind in modern style. Interestingly, most of these customers are average income earners.
Unfortunately, it’s a known fact that styles and designs change almost every month. As a result, the design you’ve bought recently can become outdated in a couple of months! Are you going to spend a fortune again to replace it with something trendier? Rich people know the catch and opt for keeping it simple and classic. They choose time-tested and ever-lasting designs: painted walls, tiled or wooden floors, and whitewashed ceilings.
9. Additional Education for Their Kids.
Oh no, it doesn’t mean that rich people love their children less than other parents. But they try not to waste money on numerous extracurricular activities and home tutors. Average income parents do it because they believe that this way, their little ones will reveal their hidden talents, and this will ensure a future prosperous life.
Others are under the impression that additional courses will help their kids to have better grades at school. But most wealthy people know that too much of everything won’t make you financially successful. And excess tutoring won’t turn you into a skillful entrepreneur. Thus, they allow their kids to have more free time to enjoy the activities they prefer.
10. Video Games and TV Channels.
Come to think of it, probably very few rich people spend hours staring at a TV screen or driving their Need for Speed racing car. That’s why they don’t spend much money on the latest video games or jumbo TV packages.
By the way, even though wealthy people have more gadgets, low-income households use their devices much more often.
11. Luxury Brands.
Obviously, the rich and powerful can afford clothes created by any fashion designer, but do they buy up all the latest collections? Nope! Naturally, there are social events when they need to dress up, but in everyday life, a lot of wealthy people choose simple, unassuming clothes.
For example, Ingvar Kamprad, the founder of IKEA who has already appeared in this video, once mentioned in an interview that he preferred to wear clothes found at flea markets because he wanted to show a good example. As for Bill Gates, you’ll notice a $10 watch on his wrist.
12. Things That Won’t Last.
It’s a common misconception that rich people buy new stuff on a regular basis. Surely, they have enough money to replace things that break or wear out, but even a millionaire doesn’t want to waste money this way.
All wealthy people realize that the cheapest item isn’t always the most profitable. When buying something, you need to consider how the price tag today compares with the thing’s worth over time.
13. Latest Versions of Popular Gadgets.
Have you ever seen the lines near Apple stores when a new version of the iPhone is about to see the light of the day? Well, tell you what? You’re unlikely to meet a millionaire in this crowd (and not only because they can pay other people to line up for them). Rich people have very practical reasoning when it comes to expensive things.
First of all, they ask themselves whether a purchase is worthwhile, and only after that, they decide whether they’re going to buy it. Interestingly, millionaires aren’t gadget-crazed. They can easily use old phone and laptop models as long as they work well.
Besides, even if they do buy expensive state-of-the-art gadgets, that’s most likely not because they feel the need to follow the trend. Are there any things you never buy? If so, write about them in the comment section below and mention why you avoid spending money on them! Remember to rate this article “These are 13 Ways poor people waste money but rich people don’t” and share it with your friends!
Credit: Brgiht Side