Compared to other socioeconomic classes, having greater wealth comes with certain advantages that allow for more savings opportunities.
Higher-income individuals often have access to better financial resources, job stability and career opportunities. According to experts, all of this gives them an upper hand and contributes to their long-term savings.
The rich value their time and are willing to pay for convenience. They’ll often outsource tasks such as housekeeping, grocery shopping, or meal preparation, allowing them to focus on more lucrative endeavors.
On the other hand, the poor and middle class may see these services as luxuries and may not be willing to spend money on them, leading to time-consuming and tiring tasks that take away from more productive activities.
“If someone doesn’t like cleaning their home and can make $100 or more per hour at work, paying someone $30-40 per hour to clean makes sense,” said Bri Conn, investment advisor representative and co-host of the Childfree Wealth Podcast.
She says the same goes for grocery shopping, car maintenance, meal prepping, and many more household tasks.
“So, while we often think of saving money as DIYing everything, that isn’t always the case,” Conn added. “Saving money (and your mental health) may mean working more and outsourcing the things you don’t enjoy.”
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The wealthy prioritize their health and wellbeing, knowing that it is a vital aspect of their overall success and happiness. They invest in quality healthcare, nutrition, exercise, and self-care practices to maintain their physical and mental well-being.
On the other hand, the poor and middle class may see these expenses as unnecessary or too expensive and may not prioritize their health until it becomes a serious issue and ends up costing them big.
“Thanks to their ability to afford high-quality health insurance, the rich often save more money on medical bills than poor people,” explained Jake Hill, CEO of DebtHammer Consolidation.
He notes this is especially true when it comes to emergency situations, which often force poor people to take out loans to afford care.
“Since the wealthy can pay medical bills outright, they rarely face having to pay interest on loans for medical bills or struggle to make minimum payments on these debts.”
Buying in Bulk
According to Tim Connon, founder of ParamountQuote Insurance Advisors, buying in bulk is something rich people can afford to do while poor people cannot.
“Bulk purchases are usually discounted heavily but still require a higher upfront cost,” he said. “Poor people cannot afford these types of upfront costs for bulk items to save money the same way.”
Eating at Home
Shaun Martin, owner and CEO of We Buy Houses In Denver, says the number one thing that the rich save money on is eating out.
“While dining at fancy restaurants and trying new cuisines may be a fun experience, it can also drain your wallet,” he said, adding that the wealthy understand the importance of budgeting and saving, so they choose to cook their own meals at home most of the time.
“This not only saves them money but also allows them to have more control over their diet and health.”
Rarely Buying Luxury Items
The rich know the value of money and are not easily swayed by trends or material possessions, experts say. While they may splurge on a fancy car or designer clothing occasionally, they also know when to prioritize their spending on necessary items rather than indulging in unnecessary luxuries.
“In today’s digital age, it’s easy to get caught up in the convenience of subscription services,” Martin highlighted. However, he notes these monthly fees can add up quickly and eat away at your savings.
“The wealthy understand this and carefully select which subscriptions are worth their money.”
Resisting Impulse Purchases
Impulse buying is a common trap that many people fall into, especially when shopping online. Wealthy individuals know how to resist temptations and only make purchases that align with their financial goals.
Limiting Excessive Entertainment Expenses
Entertainment can be a significant expense, especially for families with kids, Martin noted. Instead of constantly going out to expensive events or buying the latest gadgets, he says the wealthy find more cost-effective ways to have fun like hosting game nights at home or going on outdoor adventures.
Avoiding Unused Gym Memberships
“Gym memberships can be costly, and many people end up paying for memberships they rarely use,” said Martin.
Conversely, the rich understand the importance of staying active and fit but find ways to do so without breaking the bank. He says they’re much more likely to invest in home workout equipment or finding free fitness classes in their community.
Access to Financial Services
“The wealthy have access to financial advisors and experts, which is one of the most significant [means] of saving money,” said Nathan Richardson, founder of Complex Search.
He says these professionals can help them make wise investments, manage their portfolios and find ways to reduce taxes — an important way to save money in the long run.
“Most people do not have access to this level of financial advice because they cannot afford it or do not know where to look for it.”
Another factor that enables the wealthy to save money, according to Richardson, is their ability to invest in assets that increase in value over time. “Real estate, stocks and businesses are all examples of this.”
A wealthy individual, he added, can afford to buy multiple properties as investments and profit from rental income and property appreciation. Someone with less financial means, on the other hand, may struggle to even buy a home for themselves, let alone invest in additional properties.
Networking and Relationships
The wealthy also understand the importance of building strong relationships and networking in various industries. They’re often willing to invest in memberships, events and other opportunities that allow them to connect with influential individuals who can help further their success.
The poor and middle class may not see the value in these expenses and may miss out on potential opportunities for growth, advancement and future savings.
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This article originally appeared on GOBankingRates.com: 12 Ways the Rich Save Money That Poor and Middle Class People Don’t