Hi there, money mavens! The ultra-wealthy are often seen living it large with private planes, designer clothes, and new supercars. But here’s the inside story: the rich don’t spend stacks on every new thing. They’re master tacticians, avoiding purchases that plunk into the tank the moment they take delivery. Their magic formula? A focused discipline to make and maintain money by evading depreciation’s hidden pitfalls.
While the rest of us may view a new luxury automobile as the ultimate flex, millionaires recognize it as a money pit. They’ve learned how to purchase high-end used, getting more bang for their buck and investing wisely. It’s not about being frugal it’s about being smart, prioritizing value rather than vanity. This philosophy is not reserved for the upper crust; it’s a template available to anyone to rethink expenditures and build wealth.
In this guide, I’m breaking down 14 surprising things the wealthy steer clear of buying new, from cars to kids’ gear, and why these choices are pure gold. Backed by expert insights and real-world examples, each point reveals how the affluent prioritize long-term financial health over fleeting status. Ready to channel their wisdom? Let’s dive into these savvy habits and transform your financial game!
1. Brand-New Luxury Cars
The rich understand that a brand-new luxury vehicle is an economic catastrophe in the making. The instant a BMW or Ferrari drives away from the showroom, it depreciates 20% in value, falling as much as 60% within five years. That’s a tremendous loss for something that’s more ego-driven than functional. Rather, they choose gently used cars, usually only a few years old, that retain premium features and warranties. The strategy saves tens of thousands and provides the same luxury experience. It’s a harsh lesson in valuing instead of the thrill of the new-car smell.
- Why They Avoid It: Depreciation is a wealth-killer, and millionaires refuse to take the hit. As Thomas Stanley notes in The Millionaire Next Door, most millionaires drive practical cars like Toyotas, not flashy status symbols.
- Real-World Example: A real estate mogul driving a five-year-old Prius once quipped, “I’d rather people think I’m broke than actually be broke,” proving function trumps flash.
This plan isn’t about not giving in to luxury it’s about indulging in it more intelligently. Through pre-owned purchases, the affluent avoid the steepest depreciation curve but still ride in style. They recognize that wealth isn’t about making grand impressions on strangers but about making decisions that keep capital intact. For anyone interested in accumulating wealth, this routine is a lesson in self-discipline: avoid the new-vehicle buzz and deploy the savings into assets that appreciate, not depreciate.
2. Blaring Logos on Designer Apparel
Skip blowing money on designer apparel with giant logos the rich favor understated, classic taste over screaming logos. New designer apparel with large logos comes with exorbitant markups that disappear after wear and tear. The rich view these purchases as less about admiration-seeking than about demonstrating refinement. They buy high-end consignment or sites like The RealReal, scoring gently used items for a fraction of the original price. This maintains their closets in top condition without the expense. It’s a smart play that mixes high-end style with frugality.
- Why They Avoid It: Consumer psychologist Kit Yarrow says, “True wealth doesn’t need to shout it’s confident in its subtlety.” The rich prefer quality and fit to logos that holler.
- Key Benefit: Purchasing second-hand enables rotation of luxury brands, keeping up a high-end aesthetic for less money.
This strategy creates a wardrobe that’s both stylish and frugal. The affluent value quality over Keeping Up with the Joneses, creating a style that stands the test of time rather than following temporary fashion trends. By steering clear of logo purchases, they avoid the expenditure of paying for status that will eventually pass on. For the rest of us, it’s a reminder: spend on pieces that showcase your sense of style, not a brand’s advertising.
3. New Jewelry & Flashy Watches
Luxury jewelry and watches directly from boutiques carry markups that disappear after the sale is made. The rich understand that, barring the individual being a collector after a rare piece, new bling is a dubious investment. They look for pre-owned or vintage treasures from authoritative sources such as Hodinkee, where history and craftsmanship are available at improved prices. A used Rolex, for example, can retain or increase in value, in contrast to new pieces that plummet immediately. This strategy provides prestige without the cost. It’s smarter to own classic pieces.
It’s not insecure; it’s smart.
- Why They Steer Clear: Forbes points out that antique jewelry appreciates, unlike brand-new jewelry that depreciates quickly. The wealthy perceive flashy new buys as insecurity, not wealth.
- Smart Move: Pre-owned purchasing provides exclusive designs and possible investment payoff, mixing style with strategy.
The rich’s style of jewelry is a masterclass in value for more than show. They understand that a $50,000 timepiece isn’t worth it if it’s $20,000 pre-owned with the same quality. In keeping pre-owned first, they indulge in luxury while keeping money for better uses. For those tempted to splurge on expensive jewelry, this habit shouts: shop the secondary market for bargains that blind without breaking the bank.
4. Luxury Furniture at Retail Prices
Showroom designer furniture comes with a premium the rich won’t pay for. Quality ones are made to last and develop character over the years, so new acquisitions are never necessary. They hunt estate sales or high-end resale stores for the likes of Herman Miller at rock-bottom prices. These are higher quality and classic designs without the retail price tag. It’s furnishing homes with sophistication without breaking the budget. The wealthy understand that luxury is not required to have a full-price price.
- Why They Steer Clear: Architectural Digest reports that antique furniture can increase in value, so it’s a double victory for fashion and investment. Fresh showroom purchases tend to depreciate quickly.
- Practical Advice: Estate sales provide vintage classics for pennies on the dollar, allowing the affluent to design thoughtful, timeless rooms.
This practice builds homes that are intelligent and cost-effective. Not buying trendy, high-priced furniture, the wealthy avoid the debt of continuing redecorating. Their homes show timeless taste, not passing fancies. For the rest of us, it’s an invitation to find high-quality secondhand pieces that make your home shine without eating up the budget, demonstrating luxury can be intelligent and sustainable.
5. New Art from Galleries
Collecting art may shout wealth, but the wealthy do not purchase new works at gallery prices. Those are high markups, and unknown works are a risk not to be taken. They shop instead at auction houses such as Sotheby’s or private collections for established works with transparent market value. These acquisitions provide provenance and possible appreciation at fair prices. It’s a smart investment that mixes cultural prestige with fiscal prudence. The rich amass impressive collections and invest strategically.
They don’t invest here because:
- The secondary market gives value and transparency, unlike gallery prices artificially inflated by buzz. Established pieces are better bets to appreciate.
- Best Benefit: Auctions enable the rich to acquire art with provenance, typically for more reasonable prices than new gallery works.
This method is a masterclass in intelligent collecting. By circumventing gallery markups, the affluent build collections both beautiful and profitable. It’s not flaunting but selecting works that retain or increase in value. For wanna-be collectors, the message is simple: venture into auctions or private sales to create a collection as shrewd as it is breathtaking.
6. Brand-New Boats/Yachts
A new yacht may appear to be ultimate extravagance, yet the rich consider it a money pit. Yachts depreciate 20-30% their very first year, making them one of the worst new purchases. Clever multimillionaires look for well-maintained used boats that offer the same luxury at a fraction of the price. The same principle applies to other high-ticket items such as private aircraft, where depreciation is hardest. It’s about living the luxury without drowning fortunes. Boat International refers to the used market as a goldmine of savings.
- Depreciation renders new boats a bad investment. Old yachts provide the same performance with fewer dollars of pain.
- Intelligent Strategy: Pre-owned purchase guarantees luxury without the huge loss of value, leaving money to invest in more valuable things.
The rich’s boat-purchasing trend is a masterclass on putting value first. They’re familiar with the excitement of a new boat not being worth the cost when similarly performing used models are available. By opting for used, they get to live life as usual while keeping capital intact. To anyone considering a major buy, this shouts: shop secondhand to live like royalty without draining wealth on the markup.
7. Expensive Children’s Toys & Infant Equipment
Even for their children, the affluent bypass costly new toys and baby equipment. Strollers, cribs, and designer toddler clothing are quickly outgrown, so full-price purchases are a temporary drain on funds. They buy gently used, high-end items from consignment stores or online websites. These options are equally safe and effective but for much lower prices. It’s a money-smart decision that minimizes waste. Parents Magazine applauds second-hand equipment for its financial and environmentally beneficial advantages.
- Why They Shun It: The transience of children’s possessions makes repeat buys wasteful. Exceptions are heirloom-quality items that retain their value.
- Real Insight: A millionaire may laugh at $450 Fendi shoes for a child, understanding they’ll become too small in a few months.
This strategy is smart saving, not pinching pennies. The affluent spend on long-lasting, shareable things or save for larger goals such as education. By sidestepping overpriced baby equipment, they set an example of frugality while still fulfilling children’s requirements. For parents, it is a reminder to go second-hand for treasures that provide quality without cost, allowing them to invest in what really counts.
8. Stylish Kitchen Gadgets
Glossy new air fryers or “smart” juicers entice many, but the rich look beyond the trend. Most of these devices lose their attraction after some uses and turn into expensive dust machines. Millionaires keep their kitchens simple, spending money on long-lasting basics or having meals prepared by chefs to save time. They shun faddish appliances that are not worth the investment, concentrating on timeless tools. It is a decision that simplifies their room and wallet. This mentality is based on need over whim.
- Why They Steer Clear: Trendy gizmos never pay in the long run, and the expense is more than their worth for sporadic use.
- Practical Tip: The rich settle on quality essentials or expert services, cutting costs and kitchen mess.
This is a reflection of an even larger principle: don’t allow marketing influence your expenditures. The rich understand that a $200 machine isn’t worth it if it is used only twice annually. By avoiding fads, they retain money available for more intelligent investments. For the rest of us, it’s an appeal to measure gadgets for actual usefulness, so each purchase has a purpose above a passing trend.
9. Premium Economy Flights on Short-Haul Trips
Springing for premium economy on a short flight is a luxury, but the affluent consider it wasteful. The marginal convenience on a two-hour flight is not worth the price when coach is sufficient. Efficiency is paramount optimal flight times, nonstops over transient luxury. Business class would be worthwhile on extended flights for work purposes, but short flights are about value. It’s a pragmatic approach that conserves wealth. The affluent don’t splurge to impress on a business-class dash.
- Not Enough: The cost-benefit ratio for short-haul upgrades is low, providing little concrete value for the money.
- Smart Move: Pinching pennies on short flights leaves dollars available for worthwhile investments or improved travel elsewhere.
This field emphasizes the rich’s consideration of utility rather than ego. They recognize that a little larger seat isn’t worth hundreds on a short ride. For opting for coach, they stay grounded and their bank accounts brimful. For passengers, it’s a lesson: measure the true value of upgrades and reserve your extravagances for where it matters, such as long-haul luxury or high-end destinations.
10. The Latest Gadgets Every Year
New wearables and smartphones fall each year, yet rich folks don’t change based on a new model being released. Yearly technology refreshes are a scam, with devices depreciating quickly and providing only marginal benefits. They wait until their existing tech slows them down or an added feature really makes a difference in their life. Warren Buffett’s vintage flip phone is a prime example function over flash. This saves thousands on devices that don’t add meaningful value. It’s a disciplined stance against consumer hype.
- Why They Avoid It: Rapid depreciation and minimal upgrades make annual tech buys a poor investment for little gain.
- Key Lesson: The rich prioritize reliable functionality, only upgrading when it solves a real problem or boosts efficiency.
This strategy is a lesson in fighting marketing FOMO. The rich understand that pursuing every new toy depreciates wealth without providing commensurate rewards. By waiting, they invest in things that are more significant. For tech aficionados, it’s an incentive to hold on to devices longer, prioritizing utility over the temptation of the “newest and best.”
11. Fancy Home Decor Trends
Social media pushes trendy decor like “coastal grandma” or minimalist fads, but the wealthy don’t bite. Constant redecorating to chase trends is a financial sinkhole with no lasting payoff. They invest in timeless, high-quality pieces that endure, creating spaces that reflect personal taste. Designer Darryl Carter says luxury lies in items you’ll love forever, not what’s hot now. This avoids the churn of fleeting aesthetics. It’s about building a home, not a showroom.
- Why They Steer Clear: Trend-based decor depreciates quickly and requires frequent updates, draining wallets with no long-term satisfaction.
- Savvy Strategy: The rich opt for timeless designs that retain beauty and financial value, providing long-term attractiveness.
This practice designs homes that are both high-end and eco-friendly. By bypassing buzzed-about makeovers, the affluent cut costs and keep areas that are personal, not performative. For homeowners, it’s an invitation to value authenticity over trends, finding items that impact your area for years, not a moment, while staying within budget.
12. Expensive Wellness Trends
From $15 green juices to crystal water bottles, wellness trends shout luxury but have little to offer. The wealthy are skeptics when it comes to such fads and instead opt for tried health practices. They spend money on quality nutrition, trainers, or chefs for actual results, not hype products. Dr. Tim Caulfield dubs wellness a status symbol founded on weak science. This is budget-friendly and sustainable health. It’s a disciplined option over trendy gimmicks.
- Why They Steer Clear: Most wellness products have little evidence, providing little benefit at great expense and temporary appeal.
- Practical Step: The wealthy emphasize sleep, exercise, and proper meals effective, inexpensive habits that beat out fads.
This is a results, not appearance, mindset. The rich understand that a $200 water bottle isn’t going to make you healthier than a good diet and exercise regimen. By steering clear of wellness hype, they save and spend on what works. For health-minded people, it’s a reminder to stick to science-driven fundamentals, avoiding the expensive trends that overpromise and underdeliver.
13. Extended Warranties
Electronics or car extended warranties appear to be wise protection, yet the rich always turn them down. The plans are full of loopholes and don’t often pay out, they help the seller more than the buyer. Having the money to pay for repairs, millionaires self-insure and bypass expensive add-ons. Millionaires understand the chances of requiring a warranty are low in relation to its cost. It’s an intelligent risk that cuts expenses without forfeiting safety. It’s an assertive step based on wealth.
- Why They Shun It: Warranties tend to be overcharged with minimal real-world applicability, particularly for those who are financially flexible.
- Key Insight: Insuring one’s self against minor failures is more cost-effective and convenient for those who are well-financed.
This behavior is an indication of the affluent’s ability to trim unnecessary expenses. They have faith in their own capacity to absorb surprises rather than paying for “peace of mind” that is more profit than cover. For consumers, it’s an encouragement to avoid warranties if the risk is low, channeling those dollars into savings or investments with actual returns.
14. Timeshares
Timeshares guarantee vacation luxury, but the rich consider them money traps. Exorbitant maintenance fees, little flexibility, and terrible resale value make it a losing proposition. Millionaires favor true travel freedom or home ownership with appreciation potential. They eschew tying up capital in assets that cost more to own than they provide. It’s a refusal of restrictive, depreciating obligations. This option values and loves flexibility over promoted “luxury.”
- Why They Shun It: Timeshares weigh owners down with recurring expenses and bad resale opportunities, conflicting with wealth-building values.
- Smart Alternative: The wealthy prefer varied travel or value-growth properties, guaranteeing liberty and financial prudence.
The rich’s disdain for timeshares is a lesson in avoiding long-term financial drains. They prefer experiences and investments that deliver real returns, not limiting obligations. For vacation enthusiasts, it’s an invitation to discover rentals or investments that aren’t bound by you, leaving your wealth available for opportunity that actually adds to your life.
The wealthy’s spending habits are a masterclass in financial discipline: it’s not about flashy purchases but strategic choices that preserve and grow wealth. By avoiding new items that plummet in value like cars, gadgets, or timeshares they focus on quality, longevity, and investment potential. Adopt these 14 lessons, and you’ll shift from chasing status to building lasting financial security. Your wallet will thank you!
