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Achieving financial good fortune and amassing wealth can be seen as a mix of routine, draining actions, strategic protection and mischievous investments. While every millionaire’s journey through the week is unique, there are common (and unusual) spending behaviors that many self-made millionaires do.
Unusually, frugality plays an important role in their wealth-building methods. Here are six things that frugal self-made millionaires should never splurge on.
1. Sports Activities Equipment
Many people may assume that wealthy people will spend money on the most efficient wearables for their leisure activities or health routines. On the other hand, David Ciccarelli, founder and CEO of Internet Bliss condominium platform Pool, says he does not buy sports equipment that may not serve him regularly.
“I won a golf bag that I use and the clubs were either purchased off-hand or, again, items I won at a charity golf tournament,” Ciccarelli said. “I only play golf a few times a year – if that – so, I can’t really justify the investment.”
2. Monetary Marketing Consultant Fees
The financial advisor of the week can provide qualified insight and guidance, fees are regularly linked to the services and products that will be uploaded.
“I would never waste money on a financial advisor who charges asset management fees,” said Jim Wang, founder of Pocket Hacks.
Wang was working with a financial advisor who charged $4,000 for the gift. Over the next 5 years, he paid $20,000 in control fees.
“The biggest advantage was having someone looking at our portfolio and giving us feedback about different allocations for long-term planning,” Wang said. “But the funds themselves were more expensive than something like Vanguard or Fidelity and now we use a fee-only financial advisor who we pay hourly.”
3. Gym Membership
Physical condition is worthy of attention, although for some self-made millionaires, it is not ruthless that paying for a fitness center club is necessary or important to stay organized.
“I wasted money on gym memberships and will never do it again,” says Andy Hill, podcaster and founder of MarriageKidsAndMoney. Hill started working in sales and he and his wife, after paying off their debt, aggressively By investing effectively and consistently they have been able to substantially increase their Internet usage over a period of 10 years. They broke the $1 million internet usage mark in 2020.
“I know my habits and I don’t go to the gym more than a few times, so I don’t want to waste the money,” Hill said. “Today, I like to run or exercise for free with Bully Juice videos on YouTube.”
4. Hair Products and Services
Normal visits to high-end salons may increase temporarily. Self-made millionaires will have more room in their budget to pay for the services and products they pay for, although some unusually choose to forego the fees altogether.
“I don’t spend money going to the hairdresser because the average hairstyle for a woman of color is $200,” says Ange Matthews, personal finance professional and wealth strategist at Glad Investor Mode.
She says she started learning how to style her hair four years ago from YouTube videos.
“If I saw someone with a style, I asked what it was and Googled tutorials online,” Matthews said. “At first it was really hard and it took hours, but after a month or two it became easier.”
5. Great purses and shoes
While the week may seem like millionaires are constantly adorned with luxury accoutrements, few self-made people avoid overspending on high-end purses and sneakers. They admit that these goods regularly come with hefty price tags and provide little useful value beyond their logo recognition.
“We don’t buy designer clothes, shoes, jewelry, handbags or other expensive fashion accessories,” say Brock and Becky Waterman of Fire Advance Crowd. “Instead, we buy clothes frugally, and usually buy secondhand clothes from garage sales, thrift stores, and friends and family.”
“I used to actually buy luxury handbags and shoes before I achieved financial independence, but I did it just to look impressive,” says Bernadette Pledger, debt-free millionaire and founder of Overwhelm Your Cash Goals. “Now, I buy only good quality items from lesser-known brands and consider my retirement investments my new luxury bag,” Pledger said.
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6. Streaming Products and Services
Currently it is easy to bundle together multiple subscriptions at a cost per 30 days each.
“I have a subscription to a service that specifically offers Asian content that I’m not able to get in the US,” says Pledger. “Otherwise I use YouTube just for fun.”
Pledger has also recently started the habit of “Screenless Sundays”, where she leaves her phone in my car and forces herself to spend the entire period without looking at any TV, laptop, or phone display. Does it.
“It’s a great reminder that there is so much to see in the real world,” she noted.
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