10 Things Rich People Never Waste Money On (But the Middle Class Can’t Resist)

callie rich neal frugal happy pocket full of money middle class wealthy habits Jul 05, 2025

When it comes to money habits, the difference between the wealthy and the middle class isn’t just about how much they earn; it’s about how they spend. Contrary to popular belief, many truly wealthy individuals are surprisingly frugal in key areas where the middle class often overspends.

Here are 10 things rich people rarely waste money on, but the middle class finds hard to resist:

1. Brand-New Cars

Middle-class families often see a shiny new vehicle as a status symbol. Meanwhile, wealthy individuals understand that a new car loses up to 20–30% of its value in the first year. Instead, they buy used or certified pre-owned vehicles, or lease strategically to preserve cash flow.

2. Luxury Fashion for Everyday Wear

The middle class often stretches their budget for designer bags, shoes, or logos to “look successful.” But most rich people? They invest in timeless, high-quality basics and spend on tailoring, not trends. Billionaires like Mark Zuckerberg and Warren Buffett are famous for wearing the same simple outfits every day.

3. Giant Homes They Don’t Need

McMansions are tempting for the middle class trying to “prove” they’ve made it. But truly wealthy people buy what they need, not what inflates their ego. They know that more square footage means higher taxes, maintenance, and heating bills; not higher happiness.

4. Extended Warranties and Protection Plans

Retailers love upselling protection plans; and many middle-class consumers buy them “just in case.” But the wealthy usually self-insure. They understand that most extended warranties are unnecessary and profit the seller, not the buyer. It's important to pick the extended warranties that make sense; the expensive washer and dryer? Probably a great idea to get the warranty. The $50 blender? probably not.

5. Frequent Tech Upgrades

The middle class lines up for the latest iPhone, smartwatch, or gaming console — even if last year’s model works fine. The rich? They prioritize ROI over novelty. Unless a new device boosts productivity or efficiency, they wait until it’s truly necessary.

6. Expensive Coffee Every Day

Yes, it’s a cliché, but it’s still true. Many middle-class consumers spend $5–$10 daily on lattes, while the wealthy brew at home or use business meetings to justify dining out. It's not about deprivation; it's about choosing where money matters most.

7. Over-the-Top Weddings

The average wedding costs over $30,000 (over in the 6-figure range) and most of that comes from middle-class couples. Wealthy individuals often opt for intimate, meaningful celebrations and focus more on investing in their marriage than the wedding day.

8. Designer Baby Gear

Many new parents in the middle class go into debt buying brand-name strollers, cribs, and baby monitors. The rich? They often reuse or buy quality secondhand items, knowing babies outgrow gear in months, not years.

9. Keeping Up with the Joneses

The middle class often competes with neighbors: new landscaping, fancy grills, kitchen remodels. But the rich? They don’t care what others think. Their spending is driven by strategy, not comparison.

10. Monthly Subscription Overload

Streaming services, subscription boxes, gym memberships, apps; the middle class signs up and forgets. Wealthy individuals track every recurring charge and cancel anything unused. They’d rather invest the $50–$200/month most people waste.

Wealth Is Built on Intentionality

Here’s the uncomfortable truth: most millionaires didn’t get rich by acting rich — they got rich by thinking long-term.

It’s not about being cheap. It’s about being strategic. The middle class often spends to feel wealthy. The truly wealthy spend to stay wealthy.

If you want to shift into financial freedom, start asking yourself the same questions the rich do:

Will this purchase increase my income, time, or joy long term?
Am I buying this for me, or to impress others?
Could this money be invested instead?

Small shifts create massive results. Cut the waste, grow your wealth, and think like the rich — even before your bank account says you are.

Want more financial mindset shifts?
Check out my Millionaire Mindset program or subscribe for weekly tips on building freedom from the inside out.

Stay connected with news and updates!

Join our mailing list to receive the latest news and updates from our team.
Don't worry, your information will not be shared.

We hate SPAM. We will never sell your information, for any reason.