Achieving financial success and building wealth often involves a mix of hard work, strategic savings, and wise investments. While each millionaire’s path is unique, there are common (and sometimes unusual) spending habits that many self-made millionaires share.
Here are six things self-made millionaires typically avoid wasting money on.
1. Sports Equipment
Contrary to what many might assume, the wealthy don’t always buy top-of-the-line sports gear for hobbies or fitness. David Ciccarelli, founder and CEO of Lake, an online vacation rental platform, mentions that he doesn’t invest in sports equipment he rarely uses. “I have a golf bag that I won, and the clubs were either second-hand or also won at charity events,” Ciccarelli says. “I play golf just a few times a year, so I can’t justify the expense.”
2. Financial Advisor Fees
While financial advisors offer valuable insights, their fees can accumulate. “I never spend money on a financial advisor who charges asset-based management fees,” says Jim Wang, Founder of Wallet Hacks. Wang previously paid $4,000 annually to a financial advisor, amounting to $20,000 over five years. “The key benefit was portfolio feedback for long-term planning,” Wang adds. “But the funds were pricier than options like Vanguard or Fidelity. Now, we use a fee-only advisor paid hourly.”
3. Gym Memberships
Physical fitness is crucial, but some self-made millionaires find gym memberships unnecessary. “I’ve lost money on gym memberships and won’t do it again,” says Andy Hill, a podcaster and founder of MarriageKidsandMoney. Hill, who significantly grew his net worth by paying off his mortgage, saving aggressively, and investing, reached a net worth of $1 million in 2020. “I know my habits and prefer not to spend on a gym I rarely visit. Now, I run or use free YouTube workout videos,” Hill explains.
4. Hair Services
High-end salon visits can quickly add up. Even though self-made millionaires might afford these services, some opt to save the expense. “I don’t spend on salon visits since the average haircut for a Black woman is $200,” says Ange Matthews, a personal finance expert. She learned to style her hair using YouTube tutorials four years ago. “Initially, it was tough and time-consuming, but it became easier after a few months,” Matthews says.
5. Luxury Bags and Shoes
Despite the assumption that millionaires frequently buy luxury accessories, some avoid splurging on high-end bags and shoes, recognizing their high cost and limited functional value. “We don’t buy expensive fashion items,” say Brock and Becky Waterman of FIRE Travel Family. “Instead, we thrift shop and buy second-hand from garage sales and thrift stores.” Bernadette Joy, a debt-free millionaire, adds, “I used to buy luxury items to impress, but now I focus on quality items from lesser-known brands and consider my retirement investments my new luxury.”
6. Streaming Services
With numerous subscription services available, it’s easy to accumulate monthly fees. “I subscribe to a service offering Asian content unavailable in the US,” says Joy. “Otherwise, I use YouTube for entertainment.” Joy also practices “screen-free Sundays,” locking her phone away and avoiding TV, computer, or phone screens for the entire day. “It’s a great reminder of the real world’s beauty,” she says.
This article originally appeared on GOBankingRates.com: I’m a Self-Made Frugal Millionaire: 6 Things I Never Spend Money On