Since 2004, I have been studying the daily habits of rich and poor people. I collected a large amount of data about these two groups, which has been reported by the media in 27 countries around the world.
The habits of rich people are not exactly what you think. In my books, Rich Habits, Rich Kids, Change Your Habits, Change Your Life, Rich Habits, Poor Habits, and Easy Wealth, I share many of the little-known habits of rich people.
One of the categories I found eye-opening was their spending habits. Here are a few of the unusual spending habits of wealthy people from my book:
- 8% shopping at Goodwill stores
- 20% used coupon
- 64% said they lived in modest, middle-class households
- 28% of people mow their lawn to save money
- 44% only buy used cars
- 19% manage their investments themselves – they don’t hire a financial advisor to save money
- 60% say they spend money frugally
- 81% use credit cards that offer bonus dollars. so they can get something for free
- 41% spend less than $3,000 on annual leave
To me at least, some of these spending habits are shocking because they seem incongruous. Such as shopping at a Goodwill store, or using coupons, or just buying a used car. Why bother with these things when the rich have more money than they can spend in a lifetime?
The answer is because habits are hard to break.
Even Warren Buffett admits that he is frugal with his money. He prefers to eat at home every night because it is much cheaper. The frugal spending habits of self-made millionaires were developed before they became wealthy. And the habit of frugality will continue.
This is true even for wealthy people who no longer need to be frugal.
