One might assume that wealthy individuals have access to anything and everything,
primarily due to their financial resources. While this may be true to an extent, it doesn't
necessarily mean that the wealthy are careless with their spending. In fact, they are often
quite prudent. So, stick around as I'll tell you ten things the rich never invest in nor purchase.
#1: Tv packages and video games.
You know, we might assume that wealthy people have those huge TVs and all the
latest video games since they can afford it, but surprisingly that's not the case! It turns
out that wealthy people usually don't have time to indulge in those luxuries
as much as the middle class does. And this makes a lot of sense because I'm
pretty sure they got rich by focusing on their businesses, not by watching Netflix all day.
Research even shows that folks in households making under $25,000 a year actually spend way
more time watching TV, playing video games, or listening to the radio than those in households
making over $75,000 a year. You'd think that wealthier households would have more devices,
but it's interesting to see that lower-income folks use them more often.
In fact, according to The Daily Success Habits of Wealthy Individuals, 67% of "rich" people say they
don't watch much TV in order to focus on building wealth. And when it comes to TV subscriptions,
they usually just keep a good digital subscription on hand for occasional entertainment. So,
maybe it's worth reconsidering the next time you think about renewing that big digital package!
#2: Luxury items.
You know, it's kinda hard to believe that rich people don't always buy fancy
stuff for their daily lives. I mean, sure, splurging on designer clothes, handbags,
shoes, or cars might sound tempting, but that can really take a toll on your bank balance. You see,
it's totally fine to treat yourself to something nice every now and then,
but we should be mindful not to overspend on things we don't actually need.
Even though millionaires can afford the latest styles from top designers,
it doesn't necessarily mean they're always buying them. You might be surprised to find
out that a lot of wealthy people don't even own a single luxury item and might
even choose to wear clothes from a flea market while going about their day. And
by following their lead, we might save ourselves thousands or more each month!
#3: An overpriced home.
If you're looking for a new home and find one that's just a bit too pricey for your budget,
it's probably best to keep searching. You see,
there's no point in getting a house that's way more expensive than what you can afford.
If you didn't know, it costs a lot of money to maintain a home. All those extra improvements
and fancy interiors can really take a toll on your finances. Interestingly,
even wealthy folks shop around when buying a house. They want to make sure they're getting
the best deal and not being ripped off. I mean, they might be spending millions,
but they'll still try to haggle the price down like everyone else.
Some rich people even choose not to buy a super fancy house at all. And
there are those who still live in homes they bought ages ago because
they don't see the need to move into a more extravagant place.
Before moving on, I’d like to thank Skillshare for sponsoring today’s video.
Skillshare is for people seeking a self-paced learning environment. You see,
a Skillshare account gives you unlimited access to an abundant trove of courses
ranging from creative, lifestyle, business, and productivity that are fun and practical.
Skillshare strikes the ideal mix between the development of specialized skills
and aspirational knowledge to help members thrive in the real world.
What’s really cool about Skillshare is that it lets you dabble in new skills, and you
might even find some classes that challenge you in meaningful ways. Plus the videos are fairly short,
you can watch them in fits and starts, pausing and resuming the class as needed.
This structure making it possible to set your own pace.
One course that I really like is; Finding Success Online:
Grow Your Social Following into a Creative Business by Kate Arends.
What I like about this course is that , it shows you how can use social media to
identify new opportunities and ultimately, build a full-fledged business. It will teach
you how to hone your expertise, vision, and community, developing your content
pillars and channels, building a brand, growing your business and so much more.
So, join today and the first 1000 people to use
the link in my description will get a 1 month free trial of Skillshare.
#4 Investing only in intangible assets.
When people talk about investing, the first things that often come to mind is stocks and bonds. But
that's not always the best choice. You see, really wealthy folks tend to invest in things like land,
gold, private and commercial real estate, and even artwork. Real estate, for example,
is a popular asset class in their portfolios to balance out stock market volatility.
Now, smaller investors might avoid these tangible assets because they're less liquid
and come with higher investment costs. But the ultra-wealthy believe that owning illiquid assets,
especially those not tied to the market, can be really beneficial for an investment portfolio.
These investments tend to pay off in the long run and aren't as affected by market fluctuations. So,
if you're thinking about investing, I hope this gives you some insights
into how the wealthy approach it and helps you make more informed decisions.
#5: Things that don't last
It's fascinating how frugal wealthy people are, they make sure never to waste their
money on things they won't use for long or that don't provide much value. Even if they
can afford to replace worn-out or broken items, they tend to be more mindful of their spending.
Rich people understand that choosing the cheapest option isn't always the best choice. So,
they think about the long-term value of their purchases and weigh the costs and benefits.
Instead of splurging on extravagant vacations or the latest gadgets,
wealthy individuals might opt for a comfortable hotel stay or stick with the phone they already
have. They recognize the value of money and try not to spend it on fleeting items.
So, the lesson here is to consider investing in things that have long-term importance.
This mindset can help us save money and make wiser financial decisions in the long run.
#6: Late fees
One common mistake people make when trying to save money is forgetting
to make payments to their credit card companies. And sometimes,
the penalties can be quite steep. So to avoid those "extra" charges,
it's a good idea to keep a systematic record of when credit card bills are due.
Wealthy people really don't like paying those pesky late fees that come with forgetting to
pay a bill or other obligation. That's why they're so careful about setting
up automatic payments on all their accounts, like credit cards, insurance, and mortgages.
They do this because they know the late fees can add up to a significant amount over time.
#7: Only investing in the US and Europe
You see, while the European Union and the United States are often seen as the regions
offering the safest and the highest level of investment security, wealthy people actually
look beyond these regions to frontier and emerging markets all over the world.
Some of the top countries where the ultra-rich are investing include Singapore, Chile,
and Indonesia. It's a good idea for individual investors to do their own
research on emerging markets and see if they fit into their overall investment strategies
and portfolios. You see, it's important not to limit ourselves to just a few countries,
as there are plenty of opportunities waiting to be discovered in different parts of the world.
#8: Impulse buys
There's a saying that if you keep buying things you don't need,
eventually you'll have to sell the things you do need.
It's true, sometimes we're tempted to buy that shiny new car or the cashmere
sweater in the store window. But wealthy people rarely make impulse purchases. Sure,
they can afford luxurious items, but they usually think carefully about them
and their financial situation before opening their wallets.
So maybe it's better to resist that tempting jacket or the expensive perfume. A lot of folks
might not realize this, but impulse buying can actually lead to record-low credit balances. You
see, wealthy people could buy most of the things they want, but they choose not to because they
think about whether they really need it or not. That's something we can all learn from, and you
might be surprised at how much money you end up saving by being more mindful with your spending.
#9: Gambling
You see, gambling can be addictive and cause all sorts of problems, like job loss, debt,
failed relationships, and even mental health issues. That's why wealthy people,
generally don't see the need to gamble their money away.
Take Warren Buffet, for example. He's one of the richest men in the world and has openly criticized
gambling, saying it's like the government taking advantage of its citizens. He believes that it
shouldn't be easy for people to waste their money, like their social security checks,
on gambling. To teach his kids a lesson about the temptation of gambling, he even
put a slot machine in his house to show them how quickly they could spend their entire allowance.
So, it's clear that many wealthy individuals see the potential dangers of gambling and choose
to steer clear of it, focusing instead on more productive ways to grow and protect their wealth.
Teaching children about the potential dangers of gambling and the importance of managing
money responsibly is a valuable lesson for their future. Gambling can be tough to
control and may lead to severe financial losses if not approached with caution.
We can learn a lot from the way wealthy individuals handle their finances and
the things they choose not to invest in. Emulating some of their habits
and decision-making processes can lead to financial stability and personal growth.
As we continue our lives, keeping these lessons in mind and putting them into
practice can help us make wiser financial choices and ultimately improve our overall well-being.
Well, thank you so much for watching and staying with me till the end. If you have any
comments or thoughts you would like to share, please do so in the comment section below.
I am looking forward to hearing from you.
Lastly, remember to like and share this video with your family and friends. And
remember to subscribe to this channel if you haven't. Until next time, have a lovely day.