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Achieving millionaire status may be more attainable than before, yet adopting a certain mindset can assist an ordinary individual in reaching that financial milestone. Surprisingly, many millionaires exhibit frugality, often avoiding unnecessary expenditures.
Contrary to the lavish lifestyles depicted in media, numerous millionaires prioritize wealth accumulation over luxury. To gain insight into the characteristics of millionaires, I consulted ChatGPT about what they avoid wasting money on.
Avoiding Lifestyle Upgrades
The Global Wealth Report by Swiss Bank UBS reveals that approximately 10% of adults in America are millionaires. Many of these individuals refrain from high-maintenance lifestyle upgrades such as larger homes or expensive cars—preferences highlighted by ChatGPT.
According to AI insights, millionaires do not invest in extravagant lifestyle enhancements since such upgrades result in ongoing expenses. Wealthy individuals prefer to allocate their resources for investments that contribute to long-term wealth growth rather than superficial extravagance.
Steering Clear of Status Symbols
Moreover, millionaires tend to avoid “flashy status symbols” such as designer watches or luxury vehicles. Instead, they often value privacy and freedom more than superficial displays of wealth.
Avoiding High-Interest Debt
In addition, millionaires work hard to steer clear of high-interest debts, including credit card interest or “Buy now, pay later” schemes. A study by Northwestern Mutual highlighted that 69% of millionaires in America opt for financial advisors to manage their wealth—much higher than the one-third figure reported in the general population.
Mindful Spending on Convenience
While many consumers relish convenience, millionaires remain cautious about these expenditures. ChatGPT points out that they often forgo overspending on services like DoorDash or UberEATS, choosing instead to save and build their emergency funds.
Investing Wisely
When it comes to investments, millionaires are not tempted by trendy options or get-rich-quick schemes. They focus on stable, proven investment avenues instead. According to The Currency, almost 47% of millionaires invest in stocks, holding an average portfolio worth approximately $949,248.
Opting for Quality Over Quantity
Lastly, millionaires prioritize quality purchases over low-cost items that need constant replacement. They invest in durable products rather than “cheap shoes,” low-quality electronics, or disposable appliances.
By adopting these financial habits, individuals can enhance their budgeting strategies and move closer to achieving their financial goals. Interested in improving your financial situation? MoneyLion, a partner of GOBankingRates, is offering a cash giveaway of $2,000 daily until January 24, 2026. Sign up today to discover if a financial boost is in your future.
