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4 Things Millionaires Don’t Spend on — and Where They Invest Instead
Where millionaires splurge (hint: it’s not on the latest iPhone).
You’d think millionaires splurge without a second thought, but the reality is often far different. While some spend recklessly, many are more mindful, investing deliberately where it matters most and avoiding unnecessary expenses that don’t add real value.
Adopting principles that build long-term wealth is beneficial regardless of income or net worth, as these habits focus on control, growth and stability. And who better to learn principles of wealth building than the financially successful? By understanding how they spend — and more importantly, what they avoid — you can apply the same strategies to grow your wealth.
Here’s what they cut from their budgets and the smarter choices they make instead, so you can learn from their example.
4 things millionaires avoid spending money on
I asked financial advisors, Certified Financial Planners (CFPs) and other money experts about the smart spending and saving habits of millionaires and compiled their insights into the most common spending habits millionaires avoid — plus the smarter alternatives they choose.
1. Luxury vehicles
Among the most frequently cited expenditures that millionaires consciously avoid are new and luxury vehicles. Why? Millionaires know that vehicles are depreciating assets that lose value significantly as soon as you drive them off the lot.
“The biggest surprise for most people is how many millionaires drive older, reliable cars rather than luxury vehicles,” says Ali Dhanji, Financial Advisor at Raymond James.
Instead, millionaires tend to drive reliable, used cars that last and maintain their value, often holding on to them for years instead of frequently trading them in for upgrades.
“I have clients worth $5-10 million driving 8-year-old Toyotas because they view cars as depreciating assets, not status symbols.”
2. Extended warranties
Extended warranties generate massive revenue in the US. In 2024, consumers spent an estimated $48.4 billion on protection plans for items such as vehicles, electronics and appliances.(1)
However, many financial experts advise against purchasing these warranties in most situations.(2),(3) They’re often overpriced and rarely provide value.
Filip Telibasa, CFP, owner and planner at Benzina Wealth, notes that millionaires avoid extended warranties because “[m]ost know these are high-margin offerings meant to prey on emotion, not logic.”
3. New trendy gadgets
From the latest smartphone to must-have smart home devices, trendy gadgets can be tempting — but they often lose value quickly and offer only marginal improvements over previous versions. Many millionaires resist the urge to upgrade with every product cycle.
“A lot of them avoid constantly upgrading their phones or buying the newest gadgets just because they are trending. That kind of spending just is not exciting to them,” says Andrew Gosselin, CPA, personal finance expert and Senior Contributor at Save My Cent.
Think millionaires are splurging on the latest gadgets? Think again. Many prefer to use their tech until it truly needs replacing, focusing their spending on tools and devices that have a tangible impact on productivity, security or quality of life.
4. Small daily purchases that add up
Millionaires are mindful of the small, everyday expenses that can accumulate over time. While it’s fine to indulge occasionally, they prioritize purchases that deliver long-term value instead of draining money on fleeting conveniences.
Niya Dragova, licensed financial advisor and CEO of Candor, explains, “[T]hey invest in durable items that save them money over the long run.”
Instead of a daily Starbucks coffee, “[m]illionaires would rather buy the coffee machine and save per cup. Everything is a form of optimization. They buy less, but they buy durable items that have incremental savings.”
“They also skip the daily convenience stuff that adds up fast,” says Raoul P.E. Schweicher, Managing Partner at MSadvisory.
“Food delivery apps, expensive coffee runs and impulse buys at checkout? Nope. They see these as money traps that drain wealth without adding real value.”
By focusing on smarter, high-impact spending rather than habitual small purchases, millionaires make their money work harder for them over time.
9 areas where millionaires focus their money
While millionaires are careful about what they avoid spending on, they’re equally intentional about where their money goes — focusing on areas that deliver lasting value, growth and happiness.
“Millionaires consistently invest in three areas: education, health and time-saving services,” says Dhanji.
“They’ll pay premium prices for executive health programs, hire personal trainers and purchase continuing education without hesitation. They also spend significantly on housekeeping, meal prep services and business-class flights — anything that buys back time they can use to generate more wealth.”
- Health. Concierge medical services, personal trainers and chefs to boost energy and longevity.
“I’ve worked with clients who won’t blink at paying for a personal chef, a concierge medical service or travel that keeps their family connected. These aren’t indulgences to them — they’re strategic investments in quality of life,” says Chris Heerlein, CEO of REAP Financial. - Continuing education. Courses, certifications and coaching to keep skills sharp and adaptable.
- Time-saving services. Housekeeping, meal prep and virtual assistants to free hours for higher-value activities. “If I can pay someone $50 an hour to clean my house while I focus on a deal worth $50,000, that’s an easy choice,” says Dhanji, quoting a wealthy client of his.
- Relationships. Memorable experiences with friends and family that strengthen personal bonds. “A lot of them are happy to spend on travel or meaningful experiences with family because they see that as a better return than buying another thing to sit on a shelf,” says Gosselin.
- Professional services. Financial advisors, attorneys and accountants to protect and grow wealth. “Quality professional relationships become profit centers rather than expense categories. Attorneys protect their wealth through estate planning and liability shields, accountants identify tax savings that compound annually, and financial advisors structure investments that generate returns exceeding their fees,” says Michael Schmied, Senior Financial Analyst at Krediteschweiz.ch.
- Philanthropy. Charitable giving to causes they care about, often for impact and legacy.
- Real estate. Properties that appreciate or generate rental income.
- Quality essentials. Durable tools, clothes and appliances that offer longevity and performance.
- Opportunities for their kids. Funding education or seed money for small businesses. “I’ve seen a trend toward giving kids $5,000 to $25,000 to launch small businesses at 18. It’s an investment in mindset and independence. If they fail, they learn a lot,” says James Hargrave, CFP, Founder of Pillar Financial Planning.
Money traps millionaires avoid
While many people fall into common financial pitfalls, millionaires tend to sidestep these traps through disciplined spending and strategic decision-making. By recognizing and avoiding these common money traps, you can adopt habits that align with long-term financial success.
Lifestyle creep
As your income grows, it’s easy to let your spending follow suit — upgrading homes, cars or habits until you’re saving noticeably less. This slow drift toward a more expensive lifestyle, even without realizing it, is known as lifestyle creep. Millionaires resist this by aligning spending with their long-term goals instead of letting purchases become comfort-driven defaults.
“Just because income goes up doesn’t mean spending should. They resist upgrading everything when they get raises, that’s how people end up living paycheck to paycheck at any income level,” says Schweicher.
Buying depreciating assets
Depreciating assets — like most vehicles, boats and gadgets — lose value over time and don’t generate income. While they’re useful, they don’t contribute to wealth building. Millionaires focus on acquisitions that appreciate, provide returns and preserve value over the long term.
Bottom line
Millionaires don’t just earn wealth — they protect and grow it through smart spending and investing habits. They avoid unnecessary expenses like new, luxury vehicles, overpriced extended warranties, trendy gadgets and small daily purchases that quietly add up. At the same time, they focus on areas that deliver lasting value, such as health, education, experiences, professional guidance, philanthropy and quality assets.
“The common thread is intentionality — every dollar has a purpose aligned with their larger financial goals,” says Dhanji.
The lesson for everyone, regardless of income, is clear: Building wealth isn’t about how much you make, but how intentionally you spend and invest. By being mindful about what to avoid and prioritizing what truly matters, you can put your money to work for long-term growth and financial security.
Ready to take control of your financial future? Start by evaluating where you can cut unnecessary expenses and invest in what truly matters.
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