Actual millionaires understand the importance of being intentional about their spending in order to grow and preserve their wealth. Many self-made millionaires have specific things they refuse to spend money on, even with funds to spare. For example, millionaire Todd Baldwin sees frugality as a game and enjoys the challenge of choosing not to buy something. Other millionaires, like Jonathan Sanchez, keep a low clothing budget by sticking to simple and timeless clothes that can be worn for various occasions. This approach helps them avoid the temptation of spending on flashy new outfits or fast fashion items.
One expense that self-made millionaire Steve Adcock avoids is extended warranties on household appliances and electronics. He believes that these warranties are often unnecessary and simply add to the store’s profit margin. Instead of purchasing extended warranties, Adcock puts money into his emergency fund each month to cover any potential repairs. This way, he is prepared for unexpected expenses without wasting money on warranties he might never use. This financially savvy approach is in line with Adcock’s overall goal of achieving financial independence and early retirement.
Another area where millionaires like Jim Cramer avoid overspending is on pricey alcohol. Despite having the means to indulge in expensive bottles of wine, Cramer takes a frugal approach and questions the value of spending large sums on something that is consumed quickly. He believes that the money could be better spent on lasting items like cashmere sweaters, rather than on an experience that is fleeting. By being mindful of where they allocate their funds, millionaires like Cramer are able to make conscious choices that align with their financial goals.
When it comes to workout clothes, Crush Your Money Goals founder Bernadette Joy prefers to save money by wearing free T-shirts received at conferences and events, rather than spending on designer athleisure. Joy recognizes the rise of the athleisure industry and the trend of expensive workout gear, but she chooses to prioritize financial responsibility over trendy purchases. This mindset reflects a common theme among self-made millionaires, who understand the value of making smart decisions with their money in order to achieve long-term financial success.
For some millionaires, like Todd Baldwin, finding ways to save money also means finding opportunities to earn money. Baldwin rarely spends on nights out with friends because he knows how to get paid for those activities as a secret shopper. By providing feedback on products and services in exchange for compensation, Baldwin is able to enjoy dining out, going to movies, and visiting various venues without having to spend his own money. This creative approach to socializing allows Baldwin to have fun with friends while also benefiting financially from his activities.
Ultimately, the habits and mindset of self-made millionaires when it comes to spending and saving money highlight the importance of being intentional and strategic with financial decisions. By refusing to spend money on certain items or activities, millionaires are able to prioritize their long-term financial goals and work towards building and preserving their wealth. Their frugal and practical approach to spending serves as a valuable lesson for anyone looking to achieve financial success and security in the future.
