8 Expenses Successful People Will Never Waste Their Money On

When you think of things successful people buy, you may picture fancy Maseratis, lavish homes and designer wardrobes. Yes, the wealthy do have extravagant tastes, but many are actually quite mindful of their spending habits. Most wealth isn’t earned through luck. Instead, it’s earned through making wise financial decisions long-term.

What’s the main reason for all their wealth and assets? Well, generally speaking, successful people function differently than the average Joe. For one, they don’t purchase things they consider a waste of money. They’ll try to avoid material things they don’t need and they are cautious of other unnecessary expenses.

Here are 8 expenses successful people will never waste their money on:

1. Credit Card Interest

A credit card can be similar to eating from a tub of ice cream. You may feel a little guilty for over indulging afterwards, but it’s just too stinking convenient. Sure, it’s easy to swipe plastic money, but you won’t catch wealthy people accruing high credit card interest because it’s a waste of money.

So what can you successful people do? One option is they transfer or consolidate their debt to a card with 0% introductory APR. Another option is to consolidate any non-deductible debt into a second mortgage or home equity line of credit (HELOC) which may be deductible depending on your particular situation. In my personal case, I have never had a credit card before and I make sure to use debit for everything.

2. Gambling, Lottery And Get-Rich-Quick Schemes

Successful people do not rely on luck. They know that hard work can give you better results. Relying on games of chance are sure enough to waste your money and to take up hours of your time. Avoid unnecessary disappointments and expenses by working for what you want instead of hoping for it.

3. Bank Fees

Bank fees such as fall-below fees and maintenance charges can be avoided if you know the conditions under which they are not charged. For example, if your bank charges $5 as fall-below fees for your savings or current account, you can avoid that by ensuring that the account always has the minimum required amount.

Credit card annual fees can be avoided if your annual spends go over a certain amount. If not, always make sure that you call up the bank to get the amount waived, unless there is a good reason to pay the fee. Go with a bank that meets your needs because there is absolutely no reason for you to pay unnecessary fees for a bank account.

4. Expensive Clothing, Footwear And Jewelry

Not all successful and rich people spend exorbitant amounts of money on how they look. They recognize that to look good, it is not necessary to buy expensive things. While they are working towards their journey to wealth, they obtain the bare necessities they need to survive. When they obtain massive amounts of wealth, then they may splurge a bit.

5. Investments With Low Returns

Successful people don’t just work hard themselves, they make their money work hard as well. When you invest your money, research and find out which options will give you the best returns. Putting large amounts of money on low-return products such as savings accounts and fixed deposits are not really worth it.

6. Extended Warranties

Manufacturer warranties are sufficient more often than not to cover a product. You’ll probably be able to buy the same item again after using it for a few years rather than adding to your cost with an extended warranty.

Quite often, these warranties have a lot of conditions attached that might prevent you from claiming their benefits anyways. So, the next time a salesman tries to coax you into buying an extended warranty for a purchase, think again.

7. Upgraded Flights

Upgrades flights are popular among wealthy people but the problem with doing so is that someone might end up paying about three to five times more money for first class travel than for a regular economy seat. At the end of the day, you’re going to the same destination and most flights are for a handful of hours. Unless you can really afford it, you should try and save as much money as you can when traveling.

8. Addictions

Be it cigarettes, alcohol or drugs, you will not find too many successful people who have been addicted to substances. Successful people stay away from addictions of any form. They know that they will not continue succeeding when they engage themselves in various types of addictions. As much as they can, they avoid to be addicted, stay sober and save a lot of money.

Conclusion

Successful people do not pay for expenses such as stated because they don’t provide any return on the actual spend. If anything, they require that you spend more on making these purchases. None of them really involve investing or thinking about the future. Successful people spend their money wisely and into worthwhile investments. In this post, I shared with you 8 expenses successful people will never waste their money on.