8 Things Rich People Don’t Spend Their Money On (YouTube Script)

HOOK: Hi everyone! Today, we will look at 8 Things Rich People Don’t Spend Their Money On. What do rich people buy? Many of us think that wealthy people buy luxury things only, and try to copy them, therefore straining our income. Stay tuned as we give you some eye-openers on the things rich people don't bother with.

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Some things speak to a person’s financial wealth. Usually, they are things like fur coats, fine jewelry, and expensive watches. Some poor people are ready to save their money for years or even take out loans to be able to buy these things. However, rich people around the world have gradually stopped indicating their social status this way. There are still many people who haven’t realized this yet.

1. EXPENSIVE CLOTHING

Oftentimes, even very wealthy people are indifferent to branded clothing and wear ordinary, mass-market jeans and sweaters that are basic items in their wardrobe and their everyday life. In one of his interviews, Bill Gates outlined that the watch on his wrist cost $10, even though he could afford millions of watches from the most famous brands. Instead of shopping, rich people try to explore the other pleasures that life has to offer, like entertainment and travel. This means more to them than a brand new bag.

2. FLYING IN BUSINESS CLASS

Rational people around the world want to travel modestly, even if they have the financial ability to pay more. For example, the founder of IKEA, Ingvar Kamprad, believes that flying business class is an unnecessary luxury. That's why all IKEA employees, despite their level, fly in economy class and stay in inexpensive hotels.

However, many people with a moderate income are ready to overpay for a trip in business class, although prices for air tickets continue to rise and business class tickets have seen the highest increases. Thanks to the existence of expensive business class fares, airlines can keep affordable fares for economy class. When we know about this fact, business class flights stop looking so attractive.

3. GADGETS

Have you ever upgraded to the latest model even when your older phone was working just fine? Most of us even take out loans or sell something to come up with cash for a brand new super cool gadget.

Rich people didn’t amass their fortune sitting around staring at a phone or TV all day. That’s why they don’t waste money on jumbo TV packages or the latest video games. According to 2015 data from Nielsen, adults in households with annual incomes below $25,000 spent considerably more time-consuming media (through TV, video games, or radio), compared to adults in households with annual incomes over $75,000.

So why just seem richer and more trendy, and in doing so, waste money and time you can't afford. Yet many wealthy and successful people stick to regular phones and devices for several years and feel great while doing it.

4. HIGH-TICKET PROPERTIES

Penthouses, mansions, luxury villas so many people are ready to take out a loan and pay for it for the rest of their life.

Although their home-buying budget is considerably higher, rich people still look for deals. They want to feel like they’re getting the most value for their dollar and not like they’re getting ripped off. Yes, they might be spending millions, but they’re going to try to bargain with the list price like anyone else.

Wealthy people prefer to buy promising real estate, for little money, to make a profit when it grows in price. For example, billionaire Warren Buffett still lives in the same modest house that he bought in 1958. His cozy house in Nebraska state only cost him $30,000, today it’s estimated to be worth $650,000.

A Mexican billionaire whose fortune is estimated at $50 billion, also lives in a modest house that was bought long ago and avoids expensive things. Amancio Ortega, the founder of the Zara clothing store chain, also didn’t let his success infatuate him — he and his wife live in an ordinary house in Spain. A professor at Stanford University, David Cheriton, who owns $1.3 billion in Google shares, once said in his interview, “These people who build houses with 13 bathrooms and so on, there’s something wrong with them.”

The middle class, in contrast, is mainly driven by the saying, “Every man should plant a tree, build a house, and give birth to a son.” That’s why the life of many people starts to center around the construction of a big house, which sometimes doesn’t stop until the kids grow up. It takes a lot of money, time, and energy, while the expenses for maintaining the house itself and its territory take a big part of their income.

Some wealthy individuals even go so far as not to purchase an extravagant home at all. According to U.S. News and World Report, Warren Buffett may be the third-richest man in the world, but he still lives in the home he bought in 1958 for $31,500.

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5. EXPENSIVE EDUCATION

Millionaires know that free education doesn’t differ much from an expensive one, while success in life is obtained by discipline, determination, and perseverance. Also, nowadays big international companies are ready to hire young people for work, if they have the necessary knowledge. This means that professional experience and real skills are becoming more important than a college diploma.

At the same time, many people believe that if they pay for education and get a diploma, they are buying a ticket to a successful life. As a result, young people take out huge loans to pay for their education, but after graduation, they have to work outside of their specialty for the next 5-10 years to pay back the loan to the bank, which means they spend the most precious years of their life doing this.

6. PLASTIC SURGERY

Earlier, plastic surgery was pretty popular around the world — everyone wanted to have a perfect body and a flawless face. Rich men would even offer to pay for the transformation of their “chosen ones,” while the girls didn’t mind at all. Today more and more celebrities and wealthy people are against plastic surgery and are promoting having a love for one’s body and wrinkles.

Meanwhile, many girls are still ready to cut back on a lot of things to save enough money for lip and breast surgeries, as well as other procedures that could help them look young and meet the current understanding of beauty ideals, which are fading into the past.

7. IMPULSE BUYING

Sure, it might be enticing to snag the cashmere sweater in the store window or the newest car on the lot. But purchasing on a whim is something you will never see a wealthy person do. “If you buy things you do not need,” billionaire investor Warren Buffet told Forbes, “soon you will have to sell things you need.” It doesn’t mean millionaires don’t buy lavish items, they just put thought into them and their bottom line before swiping their credit card.

Millionaires can afford the latest fashions from the top designers, but that doesn’t mean they’re spending their hard-earned money on high-end apparel. The founder of IKEA, Ingvar Kamprad, told Newsweek that he doesn’t wear anything that is not from a flea market to “set a good example".

Makes you wonder if those $750 new pair of shoes are worth it.

8. LUXURY CARS

Nowadays, wealthy people don’t buy new car brands if their car is in good condition and meets all their needs. Even Facebook owner, Mark Zuckerberg, drives a Volkswagen with a manual transmission and says he never cared about “looking” rich.

However, many people around the world use expensive cars to boost their self-esteem, and even not having the money to buy or maintain a vehicle like this doesn’t prevent them from getting one. They just take out car loans.

A little debt won’t hurt, will it? That’s how it starts. Debt feels free when you're swiping your card or signing loan documents, but this is an illusion. In general, you pay a price for the debt you create. That price comes in the form of interest. The higher the interest rate, the more you’ll end up paying for your debt. Also, the longer it takes you to pay off, and the higher your debt load, the more interest you’ll pay. And when you look back you've spent more money than you actually have just in a bid to look flashy.

Forbes-list millionaires can talk on a phone model released 5 years ago these days. Yes, rich people don’t buy what poor people want, and it’s not just phones! So here’re symbols of wealth that are not trendy anymore. There are still many people who haven’t realized this yet.

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Has this been an eye-opener to some unnecessary expenses you've been making? Tell us in the comment section and let's have a conversation.

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