Achieving financial success and accumulating wealth is often seen as a combination of hard work, strategic savings, and wise investments. While every millionaire’s path is different, there are some common (and uncommon) spending habits that many share. self-made billionaire share.
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Surprisingly, frugality plays a key role in their wealth-building strategies, and here are six things frugal self-made millionaires never waste money on.
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1. Sporting goods
Many people may think that the wealthy would spend money on the best sports equipment for their hobbies and fitness. However, David CiccarelliThe founder and CEO of online vacation rental platform Lake said he doesn’t buy sports equipment he might not use often.
“The golf bag was won and the clubs were hand-me-downs or won at charity golf tournaments,” Ciccarelli said. “I only play golf a few times a year, maybe a handful at most, so I don’t feel I could justify the investment.”
2. Financial Advisor Fees
Financial advisors can provide valuable insight and advice, but these services often come with fees that can add up.
“I would never waste my money on a financial advisor who charges me an asset management fee.” Wallet Hack.
Wang worked with a financial advisor who charged him $4,000 a year. After five years, he paid $20,000 in management fees.
“The biggest benefit is that someone can look at our portfolio and give us feedback on different allocations for long-term planning,” Wang added, “but the fund itself is more expensive than funds like those from Vanguard and Fidelity, and we currently use a fee-only financial advisor that we pay by the hour.”
3. Gym membership
While physical fitness is important, it’s not essential or necessary for self-made millionaires to pay for a gym membership to stay in shape.
“I wasted money on a gym membership and I’m never doing it again,” said the podcaster. Marriage, children, moneyHill, a former salesman, has been able to significantly increase his net worth over a decade with his wife through mortgage repayments, aggressive savings, and consistent investments, reaching $1 million in 2020.
“I know my habits and I don’t want to waste money on going to the gym more than a few times,” Hill says. “Right now, I like to work out for free by going for a run or watching Bully Juice videos on YouTube.”
4. Hair Services
Regular visits to high-end salons can add up quickly, and while self-made millionaires may have the financial means to pay for these services, surprisingly, some people don’t bother to pay for them at all.
“The average hairstyle for women of color is $200, so they don’t have the money to spend on going to the salon,” says Ange Matthews, a personal finance expert and wealth strategist. Happy Investor Method.
She says she started learning how to style hair from YouTube videos four years ago.
“If I saw someone with a style, I would ask them what it was and Google tutorials online,” Matthews said. “At first it was really hard and took hours, but after a month or two it got easier.”
5. Luxury handbags and shoes
While billionaires may seem to always be decked out in luxury accessories, some self-made people avoid overspending on luxury handbags and shoes, recognizing that these items often come with hefty price tags and little functional value beyond the brand name.
“We don’t buy designer clothes, shoes, jewelry, handbags or other expensive fashion accessories,” she said. FIRE Travel Family“Instead, we get our clothes thriftily, usually buying second-hand from garage sales, thrift stores or friends and family.”
“The truth is, before I pursued financial freedom, I bought luxury handbags and shoes, but it was just to look good,” says the debt-free millionaire. Achieve your money goals“Now I only buy quality items from lesser known brands and consider a new luxury bag an investment for my retirement,” Joy said.
6. Streaming Services
These days, it’s easy to get multiple subscriptions, each with a monthly fee.
“I subscribe to a service that specializes in Asian content that’s not available in the U.S.,” Joy said. “Other than that, I use YouTube for entertainment.”
Joy also recently started something called a “Screenless Sunday,” which is a challenge to lock my phone in my car and go an entire day without looking at a TV, computer, or phone screen.
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“It was a great reminder that there’s so much more to see in the real world,” she said.
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This article was originally published on GOBankingRates.com: How I became a frugal self-made millionaire: 6 things I never waste money on