The Rachel Cruze Show - 6 Purchases Quiet Millionaires Never Make

Starting point is 00:00:05 Wealth building's all about habits. So sometimes it's really helpful to examine what quiet millionaires are and aren't spending money on. So here are six purchases wealthy people never make and why. Plus, where exactly that money should go instead. Be sure to like, subscribe, and share this episode with a friend. Number one, extended warranties. So in the rare case that $50 toaster breaks and you're going to need the warranty, honestly, is probably slim.

Starting point is 00:00:32 Let's be honest. because not only is it probably not going to break, but also it's 50 bucks. And so for a lot of wealthy people, they have enough control of their money where they're able to have a spare $50 in order to do that. Now, having money set aside, yes, is a luxury. It's wonderful, and that's one thing you want to work towards. That's why an emergency fund is so, so important. So having $1,000, then when you're out of debt, you can bump that up to three to six

Starting point is 00:00:55 months of expenses. Number two, endless subscriptions. So instead of paying hundreds of dollars a month for that little $14.99, you know, streaming services here and then a bundle box here and then all of these. I mean, you look up and there's so many subscriptions, but quiet millionaires are very picky with subscriptions. Some people do an annual kind of auto pay audit to make sure that they're using the actual membership and subscription that they are signed up for because that eliminates so much when it comes to monthly costs because these are things that can just churn out your money.

Starting point is 00:01:30 And so a lot of subscriptions are crazy. And there's some like, I don't know. I heard about a bunch of people and they were doing this like BMW subscription where they were like, oh yeah, you get to like basically like leasing, like drive a BMW, but it's a subscription and all of this stuff. And majority of people you talk to, they don't waste their money on that. So whether it's something like really luxurious like that or a thousand streaming services that you sign up for, whatever the deal is, look at those and save yourself some money. Number three is sale clutter. So wealthy people don't buy things just because it's 25% off. Instead, they make a list, they know what they need, and they plan for it, and they buy it.

Starting point is 00:02:06 Like, it's pretty much that simple. They don't let marketing tactics sway their spending. And so they're not looking, again, probably because they're wealthy, but the 25%, they're like, okay, great for them. But if I don't need the item, I don't need the item. But sometimes we can get in a cycle of, oh gosh, if it's a sale, then that's a great deal. So we need to get it. Wealthy people don't. They plan, and they know what they want to spend their money on. So part of planning when it comes to your monthly expenses, use every dollar. It's an amazing budgeting app. This is what Winston and I use, and we love it. But one thing that can clutter up your budget is overpaying to be underprotected by your health insurance plan. And this is why I love Christian

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Starting point is 00:03:18 Number four is using a credit card for the points. So if you feel like you are constantly having to change, you know, what credit card are to get the rewards or the points or whatever it is, listen, it's not a flex that you need. Let me just tell you. You know, if you have to keep up again with all the monthly payments, all the million, you know, credit card perks that are here or there, and it's just like you don't know what you're getting and is it cashback, isn't this or this, listen, it takes so much mental calories to do that where a lot of wealthy people, they just pay for their stuff,

Starting point is 00:03:51 you know? I mean, like, they just say, okay, I'm going to just live life in the moment and pay for the things. They don't get sucked into all these traps because usually what you find is people that are somewhat desperate or aren't able to get X, Y, and Z. They go into debt for those things. But when you look at Quiet Millionaires, a lot of them live below their means. So there's no need to be chasing all these rewards or airline points or whatever it is.

Starting point is 00:04:14 They just say, yep, I'm going to save up and pay for it instead of throwing their money away when it comes to interest. Number five, designer logos as wealth symbols. So Quiet Millionaires usually do not prefer. loud external signals that what they have is nice. So when you see all these like big brands and even luxury brands, right, with their big logos and all of it, a lot of wealthy quiet millionaires, they just say, yeah, I just want like a great purse. It doesn't have to have a big logo on it. I just want it good quality. And so we find that a lot more today than we ever have, which is so interesting. And instead of spending all their money and all that stuff, too,

Starting point is 00:04:52 they actually look at what is going to make them money. So it's not that they don't enjoy their money, but they also have a priority of using their money to actually make more money, and that's where investing comes in. So investing 15% of your income into retirement, paying your house off early, again, putting your money towards things that are going to make you money in the long term, that's where wealthy people really prioritize. Number six, newly launched tech. So if you are building lasting wealth, again, this idea of getting the greatest new tech trend, they don't care that their phone is like three generations behind, you know, what the other phone is. Like, they'll upgrade it eventually, but again, they're not

Starting point is 00:05:28 on trend with all these stuff because for a lot of these tech companies, they know that a lot of people will be scrambling to get the new greatest thing where, again, a lot of wealthy people, they don't put their mind, their mental capacity, and their money towards that. They just use what they have till it works and they're not distracted by all the marketing tactics or flashy new things that are happening. They stay the course. Okay, are you seeing a trend here? Yeah, a lot of wealthy people are not biding at the bit to get the new latest and greatest of every single thing, even if they have the money for it. Again, they're being so smart. They plan and they know to use their money towards things that are going to help them long term. Not that's going to just in the

Starting point is 00:06:06 present make them feel good or worry about what other people are doing. They put the blinders on and they really do focus on what's important in their life. And so I love to see it. Again, they're not flashy. They may not even look wealthy, but they're the ones that are building true wealth. So if you want more of this, make sure to check out my episode, why you should spend like no one is watching. You can click right here to watch it, or I'll put a link down below if you're listening on podcasts. All right, you guys, remember to take control of your money and create a life you love.

The Rachel Cruze Show - 6 Purchases Quiet Millionaires Never Make

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