10 Things Wealthy People Never Waste Money on (And Neither Should You)

Building wealth isn’t just about having a high-salary job or inheriting wealth. It’s about getting ahead financially by holding onto the money that comes your way. Wealthy people with money in the bank know how to manage their cash flow.

While the rest of us are more myopic in our daily spending — “It’s only $5” is a common refrain — the wealthy have a big-picture mentality. They avoid financial waste and don’t spend money on things that don’t align with their long-term financial wellness.

Here are 10 things wealthy people do with their money that everyday people can emulate.

Wealthy people aren’t trying to get ahead financially by purchasing lottery tickets. The odds are slim to none, and they know they’d be better off putting funds earmarked for the lottery into just about anything else — even a low-yield savings account.

Of course, a high-interest savings account, CD, IRA, or health savings account (HSA) would be better. Channel your funds into long-term financial solutions, not quick-fix flash and glitz.

While there are many aspirational credit cards designed for the world’s wealthiest people, the truth is that many of the world’s richest people don't flash their American Express Centurion cards.

Mogul investor Warren Buffett has an American Express card (probably because he owns a good chunk of the company) but rarely uses it. Instead, Buffett prefers to pay in cash, which he does 98% of the time.

Wealthy consumers who do use credit cards do so for rewards or travel points and pay off the balance in full each month. If they can’t pay for it outright, they wait until they can.

Wealthy people may dress well, but they don’t feel the need to flaunt designer labels. Many prefer “quiet luxury” labels that boast impeccable quality without flashy logos. The designer may be recognizable to the trained eye, but the branding isn’t apparent.

Buying well-made, timeless pieces can provide far more lasting satisfaction than the costly pursuit of fleeting #trends made from questionable materials.

While it might seem like wealthy people have multiple cars, this isn’t the case for most. Not every tycoon collects vehicles, like comedian and actor Jerry Seinfeld, who owns more than 150 luxury automobiles valued at $100 million.

Ludacris drives a 1993 Acura Legend. Comedian and “Daily Show” writer Hasan Minhaj drives a Honda Odyssey minivan around New York City. And billionaire Warren Buffett, despite being the planet’s sixth-wealthiest person, still drives a 10-year-old Cadillac DTS.

Whether it’s the latest tech gadget, fashion trend, or Instagrammable vacation, the wealthy aren’t easily swayed by fads. Beanie babies, pet rocks, and Ed Hardy hats are examples. These crazes look dated and cringe now, and buying in was a big money sink.

Wealthy people spend money intentionally, investing in items that have lasting relevance and align with their long-term needs and goals. So take a cue and don’t waste your money on tomorrow’s played-out trends.

Subscription fatigue is real. With so many digital services available, it’s easy to forget how many you’re paying for.

While everyone struggles to keep up with all their monthly streaming services and subscription fees, wealthy individuals often take a more hands-on approach with their money and are more likely to cancel an underused membership.

The wealthy know that paying fees for basic banking services is entirely avoidable. They seek out no-fee checking and savings accounts with high-yield interest rates. Most big-box banks charge monthly fees and pay minimal interest, if any.

Even when an account is “free” with direct deposit, they get their pound of flesh through heavy-handed fees for overdrafts, NSFs, card replacements, account “maintenance,” minimum balance violations, and dozens more.

While you may not have Warren-Buffett-like money to stash, the best free bank accounts for consumers offer generous sign-up bonuses and high-yield interest rates.

While insurance is essential, wealthy people understand the importance of not over-insuring. They avoid doubling up on policies that provide the same coverage, which can lead to unnecessary expenses.

Instead, they streamline their insurance plans, ensuring they have the right protection without paying for redundant policies. This approach frees up cash that can be reinvested elsewhere. Take a closer look at your insurance policies, or talk to a financial planner.

While not cooking dinner is enjoyable, it’s better to keep it an occasional indulgence and not a daily habit. Eating out or ordering takeaway can quickly erode your budget. Cooking meals at home saves money and can provide better control over nutrition and portion sizes.

Wealthy individuals enjoy traveling, but they plan ahead to get the best value. Sure, you can find last-minute packages, but rich families usually prefer to do things with careful, intentional planning. Look for deals by traveling with a group or avoiding the peak season.

Many work with an agent to customize a trip that ticks off all the boxes. If you’re planning ‌an exotic destination, you ‌don’t want to be penny-rich and experience-poor.

Smart, wealthy people don’t pay full price for travel and don’t mistake price for value. You can also use top travel credit cards to earn miles and save even more.

Building wealth isn’t just about the number on your paycheck. Plenty of people earning $150,000 or more are flat broke. It’s about wisely managing the money you do have, whether it’s $100 or $1 million.

Skipping unnecessary fees, resisting trends, and focusing on long-term value can keep your finances in check. And remember, it costs nothing to boost your bank account by skipping that drive-thru coffee or a Powerball entry.