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The Worst Expenses You Might Need to Avoid As a Millionaire

Millionaire Expenses

The path to becoming part of society’s 1% can be difficult and gruelling, but far too few place an importance on staying on this path. It’s far too easy to burn through money, and with the state of the world’s economies, it’s going to be just as difficult to recoup any losses. 

If there’s one equalizing fact here, it’s that nobody wants to spend money unnecessarily. With this in mind, we have to be able to discern what things are okay to splurge on, and what aren’t. Sure, you may have money, but we’re pretty sure you don’t want to be wasting any of it. So, on that note, what are some of the expenses you might need to avoid as a millionaire?

Renting Out a Luxury Apartment

Luxury Apartment

Renting out a luxury apartment can be very, very expensive, and since it’s only something temporary it could be easily considered a waste of money because you’re essentially paying to borrow something.

A luxury apartment doesn’t increase your net worth and it can easily become a money pit when you compound the expenses such as rent and city services. It is a recurring expense that you’d be better off without. In fact, you’re much better off just buying your own home.

Gifts for Other People

luxury gifts

It’s easy to justify giving gifts to other people as a show of gratitude or appreciation, but the reality here is that more often than not, the people you buy gifts for aren’t going to use what you give them, or worse, they aren’t going to take good care of your gift. This is essentially the old adage about giving a man some fish, versus teaching him how to fish. Anything that is given freely has no inherent value.

Adventurous Sports

superbike

Whether it’s scuba diving or motorcycle racing, extreme sports are going to be a bad expense if you’re not already skilled at the craft. This is because you’d be paying to endanger yourself when you should be doing the opposite. This is especially true for motorcycles.

It’s never a question of whether or not you’d fall, but rather it’s a question of when. Motorcycle accidents have a high fatality rate. In fact, many motorcycle passenger injuries are life-altering and will require a lot of money to treat. 

Ridiculously Expensive Jewelry

graff jewelry

This is separate from gifts because they do not serve any functional purpose other than to beautify or to show off wealth. No person in their right mind would spend hundreds of dollars on a trinket that is essentially a glamorized rock. 

Fancy Restaurant Meals

Molecular Gastronomy

It may seem appealing to be able to enjoy a meal that only a few people will ever experience, but the truth is that these meals aren’t worth the time and money they cost. In fact, more often than not, the time spent during the tour of these meals could be spent actually enjoying your day or earning more money.

Sure, a few hundred dollars for a good meal is fine, but spending four hours on having food explained to you is something that’s as absurd as it sounds.

Sports Cars

sports cars

Sports cars are a status symbol that you’re likely to see rich people flaunt, but the truth is that most people who are truly rich don’t care much for sports cars. Not only are sports cars expensive to buy, maintain and repair, but it’s easy to hurt yourself and others if you lack the discipline to drive them reasonably. 

”Boring” cars are a more practical purchase, especially when you’re mature enough to recognize that cars are merely tools to help you achieve the things you need to get done in a day.

What Should I Spend Money On?

Millionaire Expenses 2

Now that you know what you shouldn’t spend money on, it’s only natural that you inquire about the purchases you should make. We won’t specify things you need to buy as these differ between people, but a general rule is that a good purchase will always be something that helps you earn more.

Things like an education or revenue-generating assets like real property or a profitable business are all investments that you’d be better off spending your hard-earned money on.

A common misconception about getting rich is that you’ll be able to spend your money on anything you want. This is far from the truth, given that holding onto your money is just as important as earning it in the first place.

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