Individuals well-versed in amassing wealth generally avoid purchasing these 12 items:
In the pursuit of financial independence, wealthy individuals often adopt a mindset that prioritizes sustainable wealth building over immediate gratification. Here are twelve common practices that these individuals avoid:
- Loud designer logos: Instead of flashy brands with big logos, the wealthy prefer understated, low-key luxury that doesn’t advertise wealth overtly.
- Overdecorated homes: Wealthy homes tend to have more restrained, intentional design focusing on comfort and meaning rather than ostentation like gold-plated fixtures or overly ornate décor.
- First-class flights: Rather than paying premium prices for first-class tickets, wealthy people often leverage points or other strategies to reduce travel costs.
- Luxury cars: They often choose reliable, practical vehicles or less conspicuous types of transportation.
- Trendy gadgets: Wealthy individuals avoid constantly buying the latest technology trends that quickly depreciate or become obsolete.
- Designer clothes: Similar to logos, they prefer simple, durable, versatile clothing over high-cost designer pieces.
- Expensive meals: Opting out of frequent upscale dining helps wealthy people maintain control over spending.
- Impulsive shopping: Avoiding purchases made on impulse helps preserve wealth and focus on meaningful investments.
- Cheap goods: Instead of buying low-quality items that wear out quickly, wealthy people invest in quality that lasts.
- Lottery tickets: They view lottery spending as a poor use of money that doesn’t build wealth.
- Time wastage: The wealthy value their time highly and avoid activities or purchases that waste it, seeing time itself as a valuable asset.
- Visible status symbols: Overall, wealthy individuals avoid overt displays of wealth that seek validation through possessions, focusing instead on financial plans and assets that grow wealth over time.
These preferences reflect a mindset that prioritizes sustainable wealth building and financial independence rather than immediate visible signs of success or gratification.
In terms of investments, sustainable wealth builders focus on steady investments in broad-based index funds, real estate, or businesses they understand, which have strong historical track records over decades. They avoid shortcuts such as get-rich-quick schemes like cryptocurrency speculation, penny stocks, or multi-level marketing opportunities.
Moreover, Americans spend an average of $200-$250 monthly on subscriptions, with studies suggesting that 10%-15% go entirely unused. Regularly auditing recurring expenses and cancelling services that don't provide clear value is a common practice among the wealthy.
Lastly, a home-cooked meal typically costs $4-$10 per person, while restaurant dining averages $25-$35 per person, resulting in a 3x-5x markup for dining out. By cooking at home, individuals can significantly reduce their food expenses and contribute to their long-term financial freedom.
By adopting these practices, individuals can take a step towards financial independence and sustainable wealth building.
[1] https://www.forbes.com/sites/forbesfinancecouncil/2018/09/27/10-habits-of-the-wealthy-that-you-should-adopt-today/?sh=486e375a546a [2] https://www.investopedia.com/articles/personal-finance/071815/10-things-wealthy-people-dont-do.asp [3] https://www.cnbc.com/2019/06/05/wealthy-people-dont-buy-these-10-things.html [4] https://www.inc.com/jessica-stillman/the-10-habits-of-the-wealthy-that-you-should-adopt-today.html
- Sustainable wealth builders, motivated by financial independence, often invest in broad-based index funds, real estate, or businesses they understand, focusing on proven long-term investments rather than speculative ventures like cryptocurrency, penny stocks, or multi-level marketing opportunities.
- In an effort to maintain financial stability and reduce excess expenses, wealthy individuals regularly audit their recurring expenses and cancel unused subscriptions, following the averaged savings of $200-$250 per month that studies suggest Americans spend on subscriptions.
