5 Frugal Habits Wealthy People Don’t Bother With

Is a penny saved really a penny earned? Many wealthy people don’t believe so.

Instead of using common frugal habits to save a little money here and there, they take a different approach. On the surface, it might seem they’re missing savings opportunities or being cavalier with their money, but there’s often more to it.

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The Wealth Mindset

“For individuals with significant financial resources, the pursuit of minor savings through tactics like using cash-back apps or driving farther for cheaper gas prices can inadvertently contribute to a scarcity mindset,” said Khwan Hathai, CFP, CFT, founder and financial therapist at Epiphany Financial Therapy. “This is a psychological frame where the focus is on what you don’t have or could lose, rather than on abundance and growth.”

She said this inner turmoil can be costly. “This could create internal barriers that hold people back from pursuing larger opportunities for wealth generation,” she said. “So, it’s not just about the nominal value of the money saved, but also about the psychological cost, the missed opportunities and the misalignment with an abundance mindset.”

Therefore, wealthy people have a lot to gain by not directing their energy toward small savings.

“For those who are financially secure, redirecting focus from minor savings tactics to bigger growth strategies can not only enhance financial well-being but also contribute to a healthier, more balanced psychological relationship with money,” she said.

Ready to find out exactly what frugal habits the wealthy aren’t wasting their time on? Here’s a look at five money-saving activities they’re not doing.

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Chasing a Deal

It’s not uncommon for people to spend hours searching for rock-bottom prices online or even driving out of their way to find a deal. However, this deal-chasing mentality isn’t as prominent among the wealthy.

“The hours spent tracking down coupons or the extra driving time for cheaper goods could instead be allocated toward activities that are not only financially more rewarding but also personally fulfilling,” Hathai said. “The very act of prioritizing small savings over substantial financial or personal growth can send a message to the subconscious mind that conserving, rather than expanding, is the primary financial goal.”

Trying To Do It All

They might be rich, but that doesn’t mean wealthy people need all the power in their lives.

“Many wealthy individuals are control freaks, but once wealth reaches a certain level, handling day-to-day affairs just prevents you from doing [things] that could further grow your wealth,” said Collin Plume, founder and CEO of Noble Gold Investments. “That’s why delegating specific tasks to experts is essential.”

On a professional level, he said wealthy business owners tend to hire marketing experts, a competent HR manager and a reputable publicist to assist with day-to-day operations. This gives them more time to focus on running their company.

“By focusing on data and asking the right questions to receive the right answers, you can make decisions that directly impact business and investment growth,” he said.

Of course, this approach can also be used in their personal lives. For example, they might hire a party planner to manage a dinner party, so they can sit back and enjoy their guests.

Sacrificing Time Over Savings

Many wealthy people firmly believe that time is money.

“When choosing between saving time and saving money, the preference will always be to save time,” Plume said. “While money can be saved and earned, time cannot.”

For example, he said if a wealthy person is given a choice between a cheap hotel 20 miles away and a more expensive one right around the corner, they’ll likely choose the latter. “Avoiding traffic and not having to leave the hotel early allows for accomplishing more tasks,” he said. “That will more than compensate for the cost difference.”

He said these people have a keen understanding of their yield per hour. “This understanding allows one to recognize what is being sacrificed for every minute away from work,” he said.

Jay Zigmont, PhD, CFP, founder of Childfree Wealth, agreed that wealthy people value time much like money.

“For example, paying for household help such as housecleaners and landscapers frees up time that can be used elsewhere,” he said.

While some of these choices might look like a splurge, he said they might actually save money.

“For example, for many wealthy people, it may be cheaper to pay for their own private chef to prepare meals in their home than to go out for dinner,” he said.

Of course, he noted that all wealthy people don’t share this mindset. “I have worked with people with tens of millions of dollars who still clip coupons,” he said. “It can be a challenge to change the behaviors that helped you to become wealthy.”

Using Cash-Back Apps

Popular cash-back apps often allow users to receive around 2%-10% cash back on their purchases. To the average person, remembering to use a cash-back app can provide a nice monetary bonus.

However, this isn’t enough to motivate most wealthy people to go through the hassle of downloading a cash-back app and clicking through it to make a purchase.

Focusing on Price, Not Quality

There’s a common mindset that cheaper is always better, but the wealthy don’t necessarily believe that. Instead of spending a minimal amount on a pair of jeans, shoes or even a home repair, they tend to focus on quality.

Of course, they can afford to do so, which makes a huge difference. However, they’re also abiding by the thought process of “buy nice or buy twice.”

Essentially, they know quality products and services are designed to last. Therefore, paying a little extra will likely mean they won’t have to shell out more cash for the same thing again anytime soon.

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This article originally appeared on GOBankingRates.com: 5 Frugal Habits Wealthy People Don’t Bother With

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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