Home Billionaires 10 Things Rich People Refuse to Waste Money On—And Why You Should Too

Billionaires

10 Things Rich People Refuse to Waste Money On—And Why You Should Too

Julie Ann September 9, 2025

Many assume the wealthy indulge in endless luxury, but research shows their financial habits are more practical than flashy. Rather than splurging on every whim, rich individuals strategically avoid wasteful expenses, focusing on choices that preserve and grow their wealth. True financial success often comes from disciplined decision-making, not extravagance. This list explores ten things the wealthy deliberately avoid spending on—and how adopting these habits can benefit anyone aiming for financial freedom.

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1. Brand-New Cars

Image Source: Photo by Ildar Garifullin on Unsplash

Wealthy individuals often steer clear of brand-new cars because they depreciate rapidly—losing up to 20% of their value in the first year alone. Instead, they prefer certified pre-owned vehicles, which offer reliability without the steep initial loss. In contrast, the average buyer who purchases new often sacrifices thousands in value the moment they drive off the lot. This smart approach helps the rich preserve capital for more meaningful investments.

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2. Trendy Fashion

Affluent individuals often avoid wasting money on fleeting fashion trends, opting instead for classic, high-quality wardrobe staples that last for years. Rather than chasing every new style, they invest in timeless pieces like tailored blazers or well-made shoes. This approach not only ensures a consistently polished look but also reduces unnecessary spending. The wealthy prioritize value and longevity over the constant cycle of fast fashion, sidestepping the financial pitfalls of ever-changing trends.

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3. Extended Warranties

Wealthy individuals usually pass on extended warranties, recognizing that most products rarely break within the warranty period. Instead, they rely on self-insurance, saving money that would otherwise go toward unnecessary add-ons. In contrast, many consumers purchase extended warranties out of fear, despite their limited coverage and low payout rates. Extended warranties often offer little real value, making them a common expense rich people avoid to preserve their wealth.

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4. Lottery Tickets

Wealthy people rarely buy lottery tickets, recognizing them as a losing proposition with astronomically low odds of winning—often less than 1 in 292 million. Instead of spending money on games of chance, they focus on investments with predictable returns. Despite the allure of quick riches, many average consumers spend hundreds annually on tickets, hoping for a windfall that rarely materializes. The rich understand that sustained wealth is built through strategy, not luck.

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5. Expensive Coffee Runs

Many wealthy individuals skip daily trips to premium coffee shops, opting instead to brew quality coffee at home. This simple habit can save thousands annually—an expense that adds up quickly for daily buyers. Making coffee at home can cost just a fraction of what consumers spend at major chains. For the rich, enjoying great coffee doesn’t require a daily splurge; it’s about smarter, more mindful spending.

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6. Overpriced Tech Upgrades

Wealthy individuals often resist upgrading to the latest smartphone or gadget every year, prioritizing functionality over trendiness. They recognize that new tech devices rapidly lose value—smartphones can depreciate by up to 50% within the first year. Rather than chasing every new release, the rich maximize the lifespan of their existing devices, ensuring better value retention and smarter financial management. This habit helps protect their net worth from unnecessary tech spending.

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7. First-Class Flights (for Personal Travel)

Contrary to popular belief, many wealthy people avoid paying for first-class seats on personal trips, recognizing that the price premium rarely justifies the incremental comfort. Instead, they often travel in business or economy class, using airline miles or points for occasional upgrades. This practical approach helps them save thousands per flight. The truly wealthy tend to reserve first-class splurges for business needs or special occasions, not routine personal travel.

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8. Unused Gym Memberships

Wealthy individuals often avoid wasting money on unused gym memberships, instead opting for pay-per-use facilities or investing in home fitness equipment. This approach prevents the common financial pitfall of paying for services that go unused. Millions are wasted annually on unused memberships. Smart spenders track their habits and adjust accordingly, ensuring their health investments actually provide value rather than becoming a recurring, forgotten expense.

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9. Lavish Parties

Many rich individuals favor intimate, meaningful gatherings over extravagant parties that cost a fortune. Instead of hosting opulent events to impress, they focus on creating memorable experiences and nurturing genuine relationships. This approach not only saves money but also deepens social connections. The wealthy increasingly value authenticity and thoughtful hosting, demonstrating that true luxury lies in quality time with loved ones—not in flashy, showy celebrations.

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10. Impulse Purchases

Wealthy individuals are known for steering clear of impulse purchases, preferring to research and reflect before making significant buys. This disciplined approach contrasts with the average consumer, who often succumbs to spontaneous spending—a habit that can quickly derail budgets. By delaying decisions and prioritizing needs over wants, the rich ensure their money goes toward meaningful investments rather than fleeting desires, helping them maintain and grow their wealth over time.

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Conclusion

The common thread among these habits is intentionality and a focus on the long term. By making thoughtful choices and avoiding wasteful spending, the wealthy consistently grow and preserve their wealth—practices that anyone can adopt. Reflecting on your own financial decisions can reveal opportunities to save and invest more wisely. Building lasting wealth is about discipline, not deprivation. For further reading, explore Mediums’s psychology behind smart spending.

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