Looking at the spending habits of other rich and well-known millionaires however shows that there is a fine balance between enjoying the fruits of your labor and going bankrupt within a decade.
To the poor and not quite wealthy, achieving financial success offers the chance to have the best things that money can buy.
That often includes what rich celebrities buy; the biggest houses in the most affluent neighborhoods, the flashiest cars in a showroom full of cars, a six foot yacht at the most exclusive marina and shopping trips that are every consumer’s dream come true.
Smart people who have built up their success and wealth may enjoy all of those things too, but they know that wealth can only grow when it is managed wisely. Whether that means investing, saving, putting capital into new business ventures or even giving back to charity, the more money they have, the more money they can make.
But of course, not everyone has the foresight and mindset to keep and grow that wealth. A look at some of the spending habits of the very rich shows that every millionaire has their own ideas of wealth.
The Good: Millionaires Who Live Below Their Means
A prime example of successful millionaires who live modest lives is Warren Buffet. Listed as #2 on Forbes 400, #3 Billionaires and #20 Powerful People, Buffet is one of the country’s most well-known investors, philanthropists and entrepreneurs. But despite bringing in profits that reach into the billions, he lives a modest life that many would consider frugal.
He takes a meager personal salary, and has kept his simple 5 bedroomed home rather than splashed out on mansions, holiday homes and compounds. As a result, his wealth continues to accumulate at a far faster rate.
The Bad: Millionaires Who Live Large and Party Large
One of the problems with becoming rich in the modern online era is that money is far less tangible. Things on the hand are a tangible sign of money, and it is this trap that many rich folk fall into.
Rich celebrities and Sports stars such as Shaquille O’Neal are a perfect example of this ‘live and spend like there is no tomorrow’ lifestyle. O’Neal is reaching the end of his highly lucrative career, but instead of being savvy and planning for the future, his spending habits involves indulging in a vehicle collection that costs a small fortune. His collection includes dozens of rare, limited edition and almost priceless cars, many of which sit in his private showroom without being driven.
Cars, property and other items may suffer fluctuations in the market, which means that their investment value is not always guaranteed.
The Ugly: Teenage Millionaires and the Instant Success Generation
Teenage millionaires and other young self-starters are on the rise around the world, either inheriting their wealth from their parents or achieving huge success and wealth early in life.
These are the teens you see on programs such as My Super Sweet Sixteen, and the young celebrities you read about in the papers such as Kim Kardashian.
This notorious spender has taken the Paris Hilton route, with the launch of her own fragrance and other related businesses. However, her over the top spending knows no bounds. In many ways, wealth becomes abstract when you reach that much-coveted level of fortune.
This is one of the early danger signs of falling into massive debt too – spending virtual money in credit cards, accounts and other credit, when you know that there is always more than enough is the quickest way to lose track of your wealth. And without any idea of how to manage that wealth, it is not a far jump to end up losing much of it.
What these is to learn from these spending habits of the rich that no matter how much you seem to have, you cannot ensure that you will always have it. Money is not just something to be made – it is something to grow and manage carefully, not to mention use wisely. Curbing those crazy spending habits may just help you stay rich when you finally make it to the top.