Five things the rich never spend money on: experts advise adopting this experience

It can be difficult to realize that you are in the company of a truly rich person. Contrary to stereotypes, rich people are much more thrifty and stingy when it comes to spending money. Often the "buy this for life" mentality plays a big role in how they manage their money. Following this philosophy means investing money where it will pay off, the publication writes. Go Banking Rates.

Photo: IStock

So, five things rich people will never spend money on.

Car loans

James H. Lee, founder of StratFI, said he spent more than a decade working in a high net worth individual (HNWI) multifamily office. It is a specialized financial institution that provides comprehensive wealth management, investment management and other aspects of financial life to several wealthy families. These offices target high-net-worth clients and offer a broader range of services than traditional financial advisors.

According to Lee, his wealthy clients only took out car loans if they could get 0% financing. Otherwise, they paid in cash, which Lee said provided an immediate return on investment.

On the subject: Who is considered poor in the USA: the consumer basket and the standard of living of Americans

Store credit cards

How many times have you been shopping and seen offers to sign up for store credit cards or pay with buy now pay later (BNPL) options? No matter how tempting it may sound, pass it by. Grant Gallagher, one of the top managers at Affinity Federal Credit Union, assured that the rich are not falling for such offers.

“These proposals contain overly confusing terms, contracts with a lot of fine print and exclusions that are more hassle than they are worth,” Gallagher explained. “If wealthy people want to get coverage or take out a loan for a purchase, they already have access to better loans than those offered in stores.”

Extended Warranties

Based on their experience, both Lee and Gallagher argue that the rich are not wasting their money by buying warranties on individual products.

“They have broader personal property coverage policies that typically offer much better rates per dollar compared to an extended warranty on one specific item,” Gallagher elaborated.

Travel Insurance

It is not uncommon to receive a message when purchasing an airline ticket asking if you would like to purchase travel insurance for a small additional fee.

However, rich people never spend money on travel insurance. Gallagher said they would rather use a rewards or premium credit card that includes travel insurance in addition to other benefits.

You may be interested in: top New York news, stories of our immigrants, and helpful tips about life in the Big Apple — read it all on ForumDaily New Y

Impulse purchases

The next time you're having a rough day, think twice before you go shopping or spend money on lottery tickets to get your luck back.

Ryan Cullen, co-founder and CEO of Cullen Cioffi Capital Management, noted that impulse purchases quickly add up over time and can drain your finances. That's why rich people avoid buying things on impulse. If your goal is to get rich, making too many impulse purchases will push it away from you.

Read also on ForumDaily:

If you used Cash App, you can get up to $2500 in compensation

Sign Mysteries: History of the US Dollar Symbol $

How to get richer in an hour: seven amazing ways to save money

Do you want more important and interesting news about life in the USA and immigration to America? — support us donate! Also subscribe to our page Facebook. Select the “Priority in display” option and read us first. Also, don't forget to subscribe to our РєР ° РЅР ° Р »РІ Telegram  and Instagram- there is a lot of interesting things there. And join thousands of readers ForumDaily New York — there you will find a lot of interesting and positive information about life in the metropolis.