Personal Financeoverpriced expenses
May 28, 2024 06:03 PM EDT
It's simple to picture the things you would purchase for yourself if you were a millionaire. However, you quickly learn from speaking with genuine billionaires that no one becomes a millionaire or maintains a million dollar portfolio by living carelessly.
These are the things that he and the other four self-made millionaires claim they never buy.
Jonathan Sanchez, a self-made millionaire and founder of Parent Portfolio, maintains a low clothing budget by keeping his wardrobe simple and timeless. He avoids overthinking his outfits, opting for blue jeans paired with a T-shirt or polo for casual wear and a suit and tie for formal events. This approach helps him resist the temptation to spend on flashy new outfits or cheap, disposable fashions. Sanchez only buys new items when he needs to replace clothes that have worn out.
Steve Adcock, who shares financial tips through his Millionaire Habits newsletter, advises against purchasing extended warranties on household appliances and electronics from big-box stores. He believes these warranties are often unnecessary and primarily add profit for the stores. Instead, Adcock recommends contributing a small amount to an emergency fund each month to cover potential repairs. This way, if an item breaks, the funds are available, and if it doesn't, the money can be used for other expenses.
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Jim Cramer was raised by frugal parents who wouldn't let the kids order sodas at a restaurant until the food arrived to avoid charges for refills. As an adult, Cramer takes a similarly thrifty approach to adult beverages, seeing them as a fleeting expense. He finds spending $500 on a bottle of wine wasteful, suggesting that the money would be better spent on something lasting, like a beautiful cashmere sweater.
Why invest in pricey workout clothes when free alternatives work just as well? This is the mindset of Bernadette Joy, founder of Crush Your Money Goals. The popularity of athleisure has made gym visits feel more like fashion shows than fitness routines. Joy opts to wear free T-shirts from conferences and events to her yoga dance classes instead of splurging on designer workout apparel.
Instead of spending money on leisure activities, consider finding ways to earn while enjoying them. Baldwin rarely spends on dining out or movies because he works as a "secret shopper." This role allows him to get paid for dining, grocery shopping, seeing movies, and even staying at hotels and casinos in exchange for providing feedback on the services and products he experiences. He often waits for a mystery shopping opportunity before going out with friends, ensuring that he can enjoy these activities for free while also earning money.
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