In my experience as an entrepreneur and observer of wealth-building strategies, I’ve noticed that a significant difference between wealthy individuals and others is how they manage expenses, not just their income levels. Adopting their disciplined spending behaviors has saved me $28,000 in one year, and my aim is to help you understand how to cut wasteful purchases and redirect those savings toward meaningful goals.
Wealth isn’t about penny-pinching, it’s about ensuring every expense serves a purpose. People who build and preserve wealth focus on value, not trends, and they question whether every dollar spent aligns with their priorities. Let’s break down five surprising areas where the wealthy choose not to spend unnecessarily and how making similar choices can economically transform your life.
Five Things Wealthy People Never Waste Money On
1. Lottery Tickets and Gambling
From a mathematical standpoint, gambling is one of the worst investments someone can make. Data from the National Council on Problem Gambling shows that average annual lottery spending for households in the U.S. is $752. Wealthy individuals rarely engage in gambling because they understand the odds and the psychology behind such habits.
Instead of gambling, they invest their money where returns are probable, index funds, real estate, or startups. Redirecting the money you might spend on lottery tickets into even a modest investment portfolio could add up to thousands over time, thanks to compound growth.
2. Cheap, Low-Quality Goods
Buying cheap often means buying twice, or, even worse, paying more to maintain or replace subpar products. For wealthier individuals, value and longevity matter more than upfront cost. Research by Consumer Reports highlights that it’s smarter to spend slightly more on durable items than to replace low-quality ones frequently.
For example, shifting from fast fashion brands to sustainable, high-quality clothing may initially increase your costs, but the savings from durability balance out quickly. In one year, cutting purchases of low-priced, disposable goods saved me $3,000.
3. Fad Diets and Trendy Health Products
Spending on diet hacks, wellness powders, or gym fads may feel worthwhile, but these often lack measurable results. A Global Wellness Institute report indicates that while the wellness industry is growing rapidly, many products fail to demonstrate real health advantages.
Wealthy people focus on sustainable, evidence-based habits, whole foods, consistent exercise, and regular checkups. Making the switch means skipping flashy vitamin subscriptions and investing time in building a simple, healthy routine that’s free from trends.
4. Unnecessary Refining and Repairs
We’re talking about buying “budget” cars or tools, only to spend large amounts fixing them repeatedly. Research from NerdWallet states that the first year of owning a car accounts for up to 20% depreciation, which also impacts repair value. Purchasing reliable used products and maintaining them correctly can eliminate unnecessary costs.
Wealthy people avoid frequent repairs by choosing reliability upfront. I learned this after switching to a three-year-old vehicle from a reputable brand. It came with quality checks and saved me from paying over $5,000 in avoidable mechanics’ fees this year.
5. Subscriptions You Never Use
We live in a subscription-filled world, from streaming platforms to software services. The average consumer wastes over $300 annually on forgotten subscriptions, according to a CNBC study. Wealthy individuals consistently audit such expenses, questioning whether a subscription adds measurable value to their lives.
Using tools like Truebill or Mint, you can consolidate billing, cancel unused subscriptions, and retain only what’s necessary. My annual review cut down on seven unused subscriptions, saving roughly $900 immediately.
How to Start Cutting the Waste
1. Monitor Expenses Actively: Use an app or, better yet, an old-school spreadsheet. List everything you spend money on for a month to reveal patterns.
2. Establish Value Filters: Ask yourself, “Will this add to my life in a measurable way?” If the answer isn’t clear, reconsider the purchase.
3. Adopt Incremental Changes: Avoid shock cuts; take gradual steps to reduce spending in the five categories above. Mark your wins along the way.
4. Redirect Savings into Investments or Debt Reduction: Once you stop making unnecessary purchases, transfer those amounts immediately into saving or reducing high-interest loans.
Common Mistakes to Avoid
A. Focusing Only on Small Wins
Avoid becoming so obsessive about small savings (like coffee) that you ignore major financial inefficiencies like high-interest loans or bad investments.
B. Chasing Trends in Savings
Don’t buy into “quick-fix” hacks that claim you can save without effort. Everything in this process requires sustained discipline.
C. Ignoring the Big Picture
Many people cut expenses but then fail to reinvest savings. Whether it’s stocks, building an emergency fund, or starting your own business, those redirected dollars can pave the way for greater security.
Final Thoughts
When I started tracking these five habits, I initially felt overwhelmed. How could trimming unnecessary spending lead to significant results? A year in, the answer became clear. I saved $28,000 by saying no to items that didn’t fit my goals and yes to habits that aligned with my lifestyle, values, and ambition.
Whether you’re a freelancer growing your revenue streams, a startup founder navigating tight budgets, or simply someone seeking financial independence, adopting these habits is a step toward building a more purposeful life and bottom line. Remember, wealth grows most effectively when you stop wasting what you already have.
FAQ
1. How do wealthy people view spending money?
Wealthy individuals focus on ensuring every expense serves a clear purpose and aligns with their financial goals, emphasizing value over trends. Read more about disciplined spending
2. Why do wealthy people avoid gambling and lottery tickets?
From a mathematical standpoint, gambling is seen as a poor investment due to the slim odds of winning. Instead, wealthy people invest in areas with predictable returns, like stocks or real estate. Learn about the psychology of gambling
3. Why do wealthy people prioritize high-quality goods over cheap items?
They believe that low-quality items tend to incur higher costs over time due to repairs or replacements. Investing in durable and reliable products typically saves money in the long run. Explore consumer behavior on quality
4. Do wealthy people invest in fad health products?
No, they favor evidence-based health habits like whole foods, consistent exercise, and regular checkups rather than wasting money on unproven wellness fads that promise quick results.
5. How do the wealthy avoid high repair costs?
By investing in reliable and well-maintained products, such as certified pre-owned vehicles, they minimize recurring repair expenses. Discover the benefits of used vehicles
6. Why do wealthy people avoid unused subscriptions?
They regularly audit recurring expenses and eliminate unnecessary subscriptions to align their spending with their needs. Tools like Truebill help manage these costs. Manage subscriptions better
7. Is buying brand-new cars a priority for wealthy individuals?
No, they often buy slightly used cars to avoid the steep depreciation of new vehicles, saving significant amounts. Learn about car depreciation savings
8. Do wealthy people believe in extended warranties?
Generally not. They find extended warranties are often a poor value compared to saving for unexpected repairs through emergency funds. Understand the pitfalls of extended warranties
9. How do wealthy people ensure value-based decisions?
They actively question if each expense adds measurable value or aligns with their long-term goals, avoiding impulsive or trend-driven purchases.
10. What’s the key to adopting financial habits of the wealthy?
The key lies in disciplined spending, active expense monitoring, and regularly redirecting savings to meaningful investments. Find out how to cut wasteful spending
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.