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Ever notice how some people with seven-figure portfolios drive 10-year-old Toyotas while others making $50,000 a year lease luxury cars they can barely afford?

This paradox haunted me during my years as a financial analyst. I’d watch clients with modest wealth throw money at things that genuinely wealthy individuals wouldn’t touch with a ten-foot pole. Meanwhile, the truly rich clients? They’d haggle over a $5 ATM fee.

After nearly two decades analyzing investment portfolios and spending habits, I discovered something fascinating: Wealth isn’t just about how much you earn. The real difference between the wealthy and everyone else lies in what they refuse to buy.

Here are eight things the truly wealthy avoid spending money on that middle-class folks waste cash on constantly.

1) Extended warranties on everything

You know that moment at the electronics store when they ask if you want the extended warranty? Most middle-class shoppers feel that twinge of fear and fork over the extra cash “just in case.”

The wealthy? They skip it almost every single time.

During my finance days, I watched a client worth $15 million buy a high-end laptop and flatly refuse the warranty. When I asked him about it later, he said something that stuck with me: “That warranty costs 20% of the product price for maybe a 5% chance I’ll need it. Those are terrible odds.”

He was right. Extended warranties are profit centers for retailers, not consumer protection. The wealthy understand that self-insuring through their emergency fund makes more financial sense than buying peace of mind for every purchase.

2) Brand-new cars

Want to know the fastest way to lose $10,000? Drive a new car off the lot.

The wealthy know this. While middle-class families stretch their budgets for that new car smell, wealthy individuals buy cars that are 2-3 years old, letting someone else absorb the depreciation hit.

I learned this lesson the hard way. Fresh out of college with my first analyst bonus, I bought a brand-new BMW. Five years later, it was worth less than half what I paid. Meanwhile, my wealthiest clients were buying certified pre-owned vehicles or keeping their reliable cars for a decade or more.

Warren Buffett drove a 2006 Cadillac DTS for years. That tells you everything you need to know.

3) Premium gas when regular works fine

Here’s something that might surprise you: Unless your car specifically requires premium gas, you’re literally burning money.

Middle-class drivers often fill up with premium thinking they’re “treating” their car better. The wealthy? They read their owner’s manual once and never think about it again. If the manufacturer says regular is fine, regular it is.

One client explained it to me this way: Paying an extra 30 cents per gallon when you don’t need to is like voluntarily increasing your tax rate. Would you ever choose to pay more taxes than required?

4) Storage units for stuff they never use

Americans spend $38 billion annually on storage units. Think about that. We buy so much stuff we don’t need that we pay monthly rent to store it somewhere else.

The truly wealthy operate differently. They practice what I call “ruthless minimalism” with possessions. If something hasn’t been used in a year, it gets sold or donated, not stored.

After leaving finance, I discovered I was paying $150 monthly to store old furniture and boxes I hadn’t opened in three years. That’s $1,800 annually to avoid making decisions. The wealthy make those tough calls immediately rather than paying indefinitely to postpone them.

5) Expensive coffee drinks daily

Before you roll your eyes at another “skip the latte” lecture, hear me out. This isn’t about denying yourself small pleasures. It’s about unconscious spending versus intentional choices.

Wealthy people enjoy good coffee. But they invest in quality equipment at home rather than spending $7 daily at coffee shops. A $500 espresso machine pays for itself in three months if you’re a daily fancy coffee drinker.

I tracked my coffee spending one month and nearly fell off my chair: $186. Now I make my oat milk lattes at home and save that money for things that actually matter to me, like my trail running gear.

6) Bank fees of any kind

Overdraft fees, ATM fees, maintenance fees, wire transfer fees. The average American pays about $250 annually in bank fees. The wealthy? Zero.

They structure their finances to avoid every possible fee. They maintain minimum balances, use in-network ATMs, and negotiate with their banks for fee waivers. More importantly, they’ll switch banks without hesitation if fees can’t be avoided.

A former colleague worth several million once drove 10 minutes out of his way to avoid a $3 ATM fee. When I laughed, he said, “It’s not about the $3. It’s about the principle. Why would I ever pay for access to my own money?”

7) Trendy clothes that won’t last

Fast fashion is expensive when you factor in cost-per-wear. That $30 trendy top you wear twice costs more per wear than a $150 classic piece worn 50 times.

The wealthy build capsule wardrobes with quality basics that last years, not seasons. They might own fewer clothes, but what they own is versatile and durable.

After analyzing my own spending, I realized I was buying new clothes monthly but always felt like I had nothing to wear. Now I invest in a few quality pieces annually and actually spend less while looking more put-together.

8) Subscriptions they don’t actively use

How many subscriptions do you have right now? Streaming services, gym memberships, apps, delivery services, subscription boxes? The average American has 12 subscriptions, and most can’t even name them all.

Wealthy individuals audit their subscriptions quarterly. If something hasn’t been used in 30 days, it’s cancelled immediately. They treat recurring expenses like vampires slowly draining their wealth.

I once discovered I was paying for three different streaming services I hadn’t used in months and a gym membership for a gym in a city I’d moved from a year earlier. That was $95 monthly flying out the window.

Final thoughts

After spending years surrounded by wealth, then walking away from that world to find my own version of success, I’ve learned something crucial: Building wealth isn’t about earning more. It’s about being intentional with what you have.

The truly wealthy don’t waste money on things that don’t add genuine value to their lives. They question every expense, avoid lifestyle inflation, and understand that every dollar wasted on something meaningless is a dollar that can’t work for them in investments.

But here’s what’s even more important: This isn’t about becoming cheap or denying yourself joy. The wealthy absolutely spend money, sometimes lavishly, on things that matter to them. The difference is they’ve eliminated the mindless spending that plagues the middle class.

Start by picking just one item from this list. Track how much you spend on it this month, then cut it out next month. You might be surprised by how little you miss it and how much you save.

Remember, wealth is built one decision at a time.

 

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