Who knew?
So how do the rich stay rich? Apparently, by acting like they’re not. High net worth individuals and $100,000+ earners Fortune spoke to said they try and keep their discretionary spending as minimal as possible, preferring the impact it has on their finances.
While their friends might enjoy eating out a couple of times a week, they choose to cook for themselves—in fact, they even buy frozen groceries because they’re cheaper than fresh.
Some choose not to own cars, mend their own “capsule” wardrobes and find some of their children’s toys on Facebook marketplace.
….
For the individuals Fortune spoke to, these habits are already second nature. And having lived the underconsumption life for most of their adult years, their bank balance is reaping the rewards.
Wealth comes from earning, saving and investing. Wealth does not come from spending money on “stuff”.
Many in the U.S. today have no idea how to live a reduced expenditure lifestyle. On the weekend, look at the open garage doors with boxes piled high inside with “stuff” they are not using. Visit most any big box store and look what is being sold – and what many are buying. It’s “stuff” that is a “want” not a “necessity”.
Today’s lives, for most, resemble what would have been luxury just 50-60 years ago.
Related: Discover How To Spot Stealth Wealth: 8 Secret Signs Of Millionaires – most of the wealthy drive Toyota, Ford or Honda cars, shop at Coscto and Walmart, likely do their own home repairs, and pack a lunch from home. They avoid taking on debts (except for specific business or investment purposes). They steadfastly avoid “lifestyle creep” – which is when income rises, so to do expenses as people tend to increase their spending.
That most rich people don’t live ostentatious lifestyles seems odd to many. Yet these quiet rich view money as a way to reach “freedom” rather than as a “status symbol”. Social media creates many fake rich – who do not have much money but create an appearance of having money. Many of those live a life based on credit and debt, “buy now, pay later” – and have little or no significant savings. When money runs out, they blame “billionaires”, the economy, politicians or something like “our generation has it tough”.
