Does splurging on high-dollar items make you rich? 🤔 According to a financial planning expert, it doesn't! The super-rich don't spend their money on the bougie things you think they do. At least not all the time. 🥳
They do still buy the occasional super yacht, and hey…maybe if you *did* splurge on those Gucci loafers, they'd let you aboard?! 🚢 Anyway, we've got the list of what to skip if you want to truly be a baller.
Here’s five things you shouldn't spend your paycheck on:
- 👜Impulse Purchases - You don't *really* need those lottery tickets at the gas station. Or that pack of gum. Even though treating yourself every now and then is good for the soul, too many impulse buys over time really add up. Muster up some willpower and skip those last minute purchases. Your budget will thank you.
- 🏘️Rent - While homebuying isn't in everyone's cards at the moment, owning a home is a more economical choice over time than renting. When you invest in a home, you build equity and own an asset. You can also pass your property to your kids or sell it later on to boost your retirement funds. If you're sitting on a chunk of change, consider investing in other real estate properties to really start building wealth.
- 💍Luxury Items - Those high-end status symbol purchases might create the illusion of wealth, but they're just that - an illusion. Buying expensive clothing, jewelry, and cars when you can't afford them can drain your finances real quick. Instead of trying to keep up with the Kardashians, stick with good-quality items that won't break the bank.
- 🤑Expensive Financial Products - You might be tempted to invest in a fancy high-fee mutual fund or insurance policy, especially if it comes with a promise of high returns. However, the higher the fees are, the less returns you're actually banking. Instead, keep things simple. If you want to invest in the stock market, pick low-cost index funds or exchange-traded funds (ETFs). They'll give you good exposure to the market and are way cheaper than the fancy guys.
- 📈High Interest Debt - Paying down debt is a major key to long-term wealth. High-interest debt from credit cards and personal loans can be a real Debbie Downer and dig you into a massive hole real quick. If you carry a credit card balance from month to month, make it a priority to pay that sucker down ASAP.
🔥Bottom line: Now, we're not saying every rich person avoids these purchases. The main takeaway is to be smart with your cash, no matter what you're buying. Long-term wealth building is a marathon, not a sprint, and every choice you make has an impact on your journey. Wondering why gas prices are higher than Willie Nelson during the summer? Head here!
Got any wealth-building tips of your own?
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