🌼4 Things People Who Are Good With Money Avoid Buying

🌼4 Things People Who Are Good With Money Avoid Buying

Big earners may not always be big spenders

Things People Who Are Good With Money Avoid Buying

People who are good with money don’t buy things according to price tags. They buy things that are worth their money.

That’s why being a millionaire is not a status or financial condition.

It is a mindset.

“All riches have their origin in mind. Wealth is in ideas — not money.”

~Robert Collier

Read also: 10 Common habits Highly Productive People Avoid At All Costs

People with such thinking don’t acquire things. They focus on creating and enjoying experiences. They know the difference between instant gratification and real pleasure.

“The Psychology of Money” made me aware of this perception of rich people. The book has helped me understand that rich people don’t think like the rest of us. They have a unique mindset that allows them to live a comfortable life without breaking the bank.

Based on research, here’s what I have learned.

#1. Extended Warranties That Don’t Make Sense

Extended warranty is a big money-making business. It’s a $25 billion industry.

For many retailers, they’re a major source of profit. And it’s no wonder why.

After all, who wouldn’t want to protect their purchase against unforeseen accidents or defects?

However, the truth is that extended warranties are largely a waste of money. Here’s why:

The majority of products don’t break during the warranty period.

If a product fails, it’s usually covered by the manufacturer’s warranty.

And if the manufacturer’s warranty doesn’t cover a product, chances are it can be repaired for less than the cost of the extended warranty.

And wealthy people are more likely to have the resources to deal with a repair or replacement.

Many experts believe that extended warranties are nothing more than a way for retailers to take advantage of gullible consumers.

So next time you’re considering an extended warranty, think twice. It might just be a case of the rich getting richer.

#2. Lottery Tickets Are Like Aiming In The Dark

Lottery Tickets: Things People Who Are Good With Money Avoid Buying

Most people believe that the only way to become a millionaire is to win the lottery.

While it’s true that winning the lottery can certainly help you achieve that goal, the odds of actually winning are pretty low.

The probability of winning will blow your mind away:

The lottery prize: 1 in 45,057,474.

The jackpot in EuroMillions: one in 139,838,160

Top reward for Set For Life: 1/15,339,390

The top prize in Thunderball: one in 8,060,598

Also, the chances of winning Powerball are 1 in 292 million, and Mega Millions are 1 in 302 million(according to a study).

For someone with a net worth of $5 million, that’s like throwing $28.57 away playing Powerball and $17.24 in Mega Millions.

Rich people very well understand this math.

So, instead of relying on chance, they invest their money in assets that will generate income and appreciate over time.

And while there’s no guarantee that their investments will pay off, the odds are certainly better than winning the lottery.

So if you’re looking to become a millionaire, ditch the lottery tickets and start investing your money wisely.

#3. Superfluous Memberships Are a Trap Rich People Don’t Fall For

When it comes to spending money, rich people are very picky.

They don’t just throw their money around on things they don’t need or want. You’ll never see a rich person paying for an extra membership.

A superfluous membership is defined as a membership that isn’t providing any value or isn’t being used.

For example, a gym membership that never gets used is superfluous. A premium subscription that’s not value for money.

The same goes for a library membership that never gets used or a magazine subscription that sits on the coffee table and collects dust.

Rich people understand that there’s no point in paying for something that doesn’t provide value. So they simply avoid superfluous memberships.

Instead, they focus their spending on important things that will improve their quality of life, such as certified courses, skill learning classes, etc.

#4. Gambling In Casinos Is a Mug’s Game

Gambling In Casinos: Things People Who Are Good With Money Avoid Buying

Gambling is often thought of as an activity for the wealthy.

After all, casinos are typically filled with expensive cars and well-dressed people, and high-stakes gambles can result in huge payouts.

However, many rich people actually avoid gambling.

While it can be tempting to get rich quickly through gambling, the odds are always against the player.

A study has proved that the house always wins in the long run, and even a lucky streak is no guarantee of continued success.

For example, one famous gambler lost $127 million over the course of two years, despite winning $40 million during one lucky streak.

As a result, many wealthy people steer clear of gambling, preferring to invest their money in ventures with a more predictable return.

Read also: 31 lessons I’ve learned about money

Final Thoughts

“Know what you own, and know why you own it.”

~ Peter Lynch

While there are many different things rich people don’t buy, the important thing to remember is that they find value in other areas of life.

They may not be interested in accumulating a lot of material possessions, but that doesn’t mean they’re living a deprived or uncomfortable life.

In fact, quite the opposite is often true.

So what are some of the things rich people don’t buy? Let me know in the comments below!

Contributed by Darshak Rana

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