Often Times Rich People Seem to Be Spending Foolish Amounts of Money on Garbage but Is It Garbage Really?
There is an age-old aphorism that shows how rich people save and grow money, introduced by Percy Bysshe Shelley in his book, “In A Defence of Poetry”.
It claims that the rich keep getting richer and the poor keep getting poorer. And Aluxers, we’ve touched on this concept throughout several articles.
What do rich people do that helps them save money and keeps enabling them to grow their wealth?
Today we look at 10 ways rich people accumulate more wealth.
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If you would also like to save some time, we’ll give you one way to do that too. Here’s our YouTube video on this interesting piece:
With that sorted, let’s jump straight into the article and check out the first way rich people save tons of money:
1
Fine Art
Art seems like a strange thing to spend money on. Art can’t be drank or lived in, consumed or worn. But on the contrary art can bring you status, wealth, and … oh the credit it buys you!
Since 2016 art secured loans jumped 40% to total $21 billion globally according to a 2019 report by Deloitte.
It seems that banks AND the rich have an appetite for art as a fast way to create available capital. And people are just not aware that art-based financing can be a fast route to capital,
Of course if you want to understand this more, Alux has you covered with a whole video on 15 REAL Reasons Why RICH PEOPLE Buy ART
2
Energy Efficient Home Improvements
The reports are mixed as to whether the rich actually DO save energy. But they certainly have access to every energy saving device to save them on their electrics bill. More recently, wealthy households are doing more than anyone else to reduce their electricity bills. Despite these efforts though, wealthy households still burn through the most energy, but it still costs them less then what they would originally pay.
In many countries adding energy efficient devices or design leads to rates savings, and there are also tax incentives for spending on home improvements. So, by adding energy efficient systems into the home, the rich not only save money on their power costs, they also get a nice tax deduction come tax season.
3
Whiskey and Wine
Saving for a rainy day doesn’t have to mean putting your pennies in a piggy bank. You could also invest in your home cellar. Whether whisky or wine is your poison, both mature in flavour and value with age. That’s why you’ll find some millionaires collecting them in their shelves.
Not only will your friends appreciate your collection, your bank manager will also raise an eyebrow if you get the right bottles in your collection. Recently auction houses have seen the hammer fall on some ludicrous prices for a bottle of plonk.
A bottle of whisky from 1926, The Macallan Valerio Adami fetched £700,000. It was one of only 24 bottles made. So sure, you might not get your hands on one of these rare bottles, but there are plenty of great bottles out there.
Why not start by buying your kids a good bottle of red wine the year they are born. Store away for a rainy day and in 60 years you might have amassed them a small fortune.
4
Collectables
Rich people save tons, all thanks to their love for charity auctions. While they support the cause, they also save big because collectables are a great investment, and you can pick up some good finds that appreciate in value. You might not be able to find yourself an antique Ty Cobb, but if you can get your hands on rookie cards of anyone like Kobe Bryant, or LeBron James you might be in the front row seats in years to come. Here’s a free tip, young NBA star Luka Doncic’s rookie cards are set to increase in value, see if you can rustle up a few and put them away for your retirement.
Rare baseball and basketball cards are a good way to have something fun to collect and see growth in value. Stamps and coins are also a solid investment. Thanks to online forums collector numbers are growing. Both stamps and coins are being phased out thanks to digital alternatives, so they will increase in value as they become rarer.
5
Personal Trainers
If you think personal trainers cost a lot then let’s do a little math. How much does an average gym subscription cost? Work out the cost of a year. Now divide this total by how many times you go the gym in a year? Be honest.
If you’re the kind of person who often cancels going to the gym for a stop at Taco Bell on the way home, then you might be surprised at how much you are paying per session.
Rich people save money by hiring a personal trainer. It is a set appointment, the person literally rocks up at your house, so you can’t exactly cancel. A trainer is after results, their reputation relies on it. They ensure you stick to a solid routine, don’t just go to gym and sit on a bicycle for 40 minutes and scroll Instagram without breaking a sweat.
In other words, when you hire a personal trainer, you get what you pay for: a good exercise routine. The same can’t always be said for the money the average person gets from paying a gym subscription.
If a personal trainer can’t make you work with the weights, we don’t know what will. Wait a second, maybe we do… check out 10 Celebs Who Inspire Us To Hit The Gym.
6
Buy Right Once
Fast fashion can be tempting, but it’s just that: Here today, gone tomorrow. When you add up the money you spent on that massive wardrobe of yours, it will probably run into the thousands of dollars, if not tens of thousands.
The sad reality is that you probably stare into your closet sometimes and feels as if you STILL don’t have anything to wear. This is where the rich often get it right. Instead of buying at fast fashion outlets they are drawn towards classic lines, and neutral colours that blend together to make well put together and classy looks.
When you’re spending upwards of a few hundred dollars on an item, you can spend a minute checking it fits and considering if it is really worth the price tag. Whereas when we swing into H&M on the way home, it seems inconsequential if the dress is a perfect fit when its buy 2 get one free so you grab them and go without trying them on. But the truth is that its buy 2 get none free if you don’t end up wearing any because they look like a sack of floral on you.
The wealthy don’t waste their money buying cheap junk that breaks and they have to replace again next season. Whether it’s golf shoes or a wallet, often in the time you had 6 or 7 of something, a wealthy person will have had one of a status brand and it still looks great.
It pays to buy right, once, and not have to replace until you want to as opposed to HAVE to.
But wealth isn’t only what you spend your money on, it’s also about what you DON’T spend. But stick around to our bonus to see what I am talking about.
7
Invest in Real Estate
Real estate is a safe investment and rich people to save money. Even if your value goes down, if you ride it out it will increase again which can’t be said for any other investment. You can also increase a value of your property by yourself by upgrading your property or changing its purpose to something more lucrative. Like turning a factory into lofts. Plus, the more you upgrade your property and more homes you create, the more tax breaks you receive in most countries. Basically, it’s a no brainer, and you can create a passive income for your life.
If you’re hungry for more property business advice watch our video: 15 Reasons Why Real Estate is the Best Investment
8
Health
The saying goes: HEALTHY, wealthy, and wise.
You are your greatest asset, and that means a healthy you. The rich know that investing in their health saves them money in the long run. Not only do they avoid preventable illness where they can, they supplement their health with daily medication, treatments and health foods that lead to longevity.
Another sure-fire way to save your wealth is to avoid unforeseen expenses, and that’s why the rich invest in a good health insurance. Knowing that you won’t have to shell out hundreds of thousands unexpectedly in the case of an accident or illness makes up for the planned monthly expense of private health insurance.
Something few people know is that with most premium and private credit cards you also get free travel health insurance, so be sure to check your benefit before you pay for travel insurance when you can finally jet-set again Aluxers.
9
They Fix Leaks Fast
The rich don’t like to lose money. Retaining money is what keeps the rich…well, rich.
The rich don’t pay high interest on overdrafts while they are only getting low interest on their savings. They don’t pay off low interest loans early if they would need to get expensive credit elsewhere to maintain their lifestyle.
You won’t catch a wealthy person waste money on late penalties, unnecessary banking or transaction fees if they can get the same service for free by paying on time or by switching to another bank. They know that their business is worth more to a bank than losing them, so they shop around and will happily up and move if they aren’t getting good rates. This is the total opposite to the average person who is so scared of the banks that we pay more than we should for keeping our money at their establishments.
It might be time to be savvier when it comes to your bank charges and make your bank work for you rather than the other way around.
10
The Rich Don’t Waste Money on Sh*t and Frivolous Spending
You won’t often find the mega rich people in a mall, that’s one good way to save your bank. Not only are malls just tacky to them, but also because the rich know that malls are designed to make people part with their money. This is something rich people don’t like to do.
They aren’t trying to keep up with the Joneses, they don’t even know any Joneses. They are more concerned about the Rockefellers,’ Murdoch’s, Opperheimer’s and Bezos type wealth. Which is more about paper wealth than what Nikes you are wearing, or if you’ve got the latest iPhone or airpods.
If you want to bat in the big leagues, look beyond how you can spend our money, and look into how you can retain your wealth. Which is exactly where we are heading for our bonus fact, so I am glad you stuck around.
Question:
What is the biggest way you waste money?
How are you going to start saving today?
