While the media gobbles up stories about how much Kimye’s wedding cost or how tech tycoons blow massive sums, they rarely highlight wealthy individuals who choose modest lifestyles.
We’re referring to those in the top 1% who continue to hunt bargains, clip coupons and refuse to pay full price for anything.
To dig into how they amassed and preserved their fortunes, the New York Times interviewed a group of millionaires next door, whose net worths range from a few million up to $10.86 million. Below are some common practices those individuals shared.
They Treat Saving as Nonnegotiable
The millionaires profiled accumulated their wealth through disciplined saving and investing rather than inheritance, although many earned solid paychecks.
“They’ve come from the middle class, the working class, and they still believe they’re part of the 99 percent, no matter what, because that’s how they identify themselves,” Paula Polito, chief client strategy officer at UBS Wealth Management Americas, told the Times.
These self-made affluent people developed frugal routines over the years. Even after achieving financial comfort, they stuck to those prudent money behaviors.
Numerous interviewees drive affordable cars for extended periods, reside in modest-sized homes, purchase clothes on sale and even darn their own socks.
They Focus Their Spending
Although several of the millionaires recounted indulgent buys, they stressed that they deliberately spent on things that mattered most to them.
For instance, one pair bought the vacant lots adjoining their property to preserve privacy. Another couple said they pick up artwork when they travel. In fact, many admitted they don’t regret splurging on vacations.
By being intentional with where they allocate funds, these former members of the 99 percent propelled themselves into America’s wealthier ranks.
Curious for more? Read the full account of their thrifty ways in the New York Times.
Many of these habits mirror the kind of simple, cost-conscious approaches promoted by outlets like frugal celebrities clip coupons and guides about frugal living in the poorest states.
Your Turn: Which financial habits would you keep if you became a millionaire? Or would you be ready to live extravagantly?
