7 things successful people never pay for
Getty Images / Oli ScarffWealthy people live on a lot less than you think.
When you think of things rich people buy, you might picture fancy Masaratis, lavish homes and designer wardrobes. Yes, most wealthy people do have extravagant tastes, but many are actually quite mindful of their spending habits.
What's the main reason for all their excess cash? Generally speaking, successful people function differently than the average Joe. For one, they don't purchase, pay for or act on things they consider a waste of money. They also live on a lot less than you might think.
Here's a list of seven things you won't catch rich people forking over cash for — and why you should also drop these wasteful spending habits.
Rich people don't waste their money on ATM fees.
1. Bank fees
If you pay bank fees, you might as well just flush your dollar bills down the toilet. Successful,rich people are much too money savvy to waste precious dollars on fees that can often be avoided.
Like many businesses, banks charge fees for their services. For instance, many banks will charge monthly or annual maintenance fees for certain accounts. Avoid these fees by playing by the rules. For example, Bank of America's Core Checking account charges a $12 monthly fee, but you can get the fee waived if you meet one of several requirements, such as maintaining a daily balance of at least $1,500 or having direct deposit set up.
According to David Henderson, a certified financial planner with Client One Securities, another good tip is to "request an account review with a banker to see if you have the right accounts for your particular situation and to see if you can reduce or eliminate any fees on your accounts. If you are a good customer, many times they will accommodate your request to reduce costs,” he said.
Rich people say no to extended warranties.
3. Extended warranties
Somewhere along the line — such as when you bought your flat-screen TV — you were probably asked, "Would you like to purchase an extended warranty?” A financially successful person has a simple answer when asked the question — no.
Although people want the most value from purchased products, generally, extended warranties don't give you more bang for your buck. They more often than not put more money in the pockets of large companies.
People with well-endowed bank accounts want to hold onto their money as much as possible — so they do the research. According to U.S. News Money, manufacturer warranties are more than sufficient. Plus, extended warranties have many stipulations. So the next time a salesperson tries to sell you on that extended warranty, shut the conversation down fast.
Rich people don't give in to temptations.
5. Impulse buys
Have you gone into a store with your mind set on purchasing one thing but come out with a cart full of stuff? Maybe it was BOGO at the grocery store, so you snagged a few items — but whatever the case might be, this is definitely not a shopping practice of the wealthy.
Successful people are planners, and impulse purchases tend not to mesh with this quality. If you want to emulate their behavior, you'll have to be much more cautious with your money, said Leslie Tayne, a financial attorney at Tayne Law Group and author of "Life & Debt."
To avoid the urge, Tayne said you might want to consider going cash only to curb your spending. "Use the envelope system, bringing with you only a predetermined amount of money to spend at each store," she said. "This approach will help you stay on budget and curb any habits you might ordinarily have in impulse buying and overspending."
Just because you can afford it doesn't mean you need to buy it.
7. High-end brands
You might see a lot of designer labels on the red carpet, but most rich people don't choose designer labels for every purchase. Though rich people have the funds to splurge at luxury retailers, they understand that doesn't always mean they should.
"Financially successful people compare shop and understand the importance of both quality and cost," said Tayne. "They may go for a cheaper item or buy the higher quality item from a cheaper store in order to make the wisest financial purchase."
So the next time you want to buy $200 designer jeans, stop and ask yourself if it's really worth the investment — or will $30 Old Navy jeans do the trick? Just remember to always shop wisely and keep your budget and financial goals in mind.
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