I used to think becoming financially comfortable meant simply earning more money. It wasn’t until I started looking closely at how truly wealthy people live that I realized something important: they don’t necessarily earn heaps more money—they spend differently.
Last year, I decided to try their strategies for myself, cutting out just five things from my budget. The result? I saved an incredible $28,000 in just one year. Here’s exactly what I stopped buying—and why.
1. Brand-name clothing
Have you ever paused to wonder if that designer label really adds anything substantial to your wardrobe beyond a fleeting sense of prestige?
Wealthy people often avoid splurging on brand-name clothing unless there’s genuine quality that justifies the premium. According to a 2023 survey by YouGov, affluent individuals frequently prioritize functionality and longevity over flashy logos.
I swapped my designer jeans for quality but label-free alternatives, and honestly, the comfort, durability, and style remained unchanged. Not only did I slash my clothing budget dramatically—I saved roughly $4,000 annually—but I also discovered a deeper sense of confidence by wearing clothes for their quality, not the label.
2. Brand-new cars
“If it depreciates, lease it. If it appreciates, buy it.” This quote from billionaire investor J. Paul Getty stuck with me, especially regarding cars.
New cars lose significant value the moment they leave the dealership—about 20% in the first year alone. That’s a heavy loss for the brief thrill of that new-car smell. Wealthy individuals typically avoid new cars, opting instead for lightly used models that offer the same benefits at a fraction of the cost.
By choosing a two-year-old vehicle, I saved over $10,000, avoided steep depreciation, and still felt the satisfaction of driving a reliable, stylish car.
3. Daily café habits
Here’s something I once never questioned: buying coffee from a café every single morning. It seemed harmless until I did the math. At around $5 per cup, I was blowing roughly $1,825 per year on something easily replicable at home.
The truly rich don’t waste money on daily conveniences when there’s an equally satisfying alternative at home. I invested in a high-quality espresso machine for around $400, which paid for itself within three months.
Not only did I save around $1,400 annually, but I also enjoyed the ritual and satisfaction of creating my perfect morning brew at home.
4. Extended warranties
“Extended warranties are like betting against yourself,” a financial advisor once told me, and I found this remarkably accurate.
Retailers often push warranties as an easy upsell, playing on fears of product failure. However, Consumer Reports found that consumers typically spend more on warranties than they ever recoup through claims. Wealthy individuals sidestep these because they understand it’s more economical to maintain an emergency fund for unexpected repairs.
Once I stopped automatically agreeing to these warranties, I noticed an immediate saving. Across electronics and appliances, ditching warranties saved me about $800 annually.
5. Unused subscriptions
Have you ever scrolled through your bank statement and spotted charges for services you rarely use or completely forgot about?
Affluent individuals are surprisingly meticulous about subscription management, trimming unused or unnecessary recurring payments regularly. A 2022 survey from CNBC found the average consumer wastes nearly $350 annually on subscriptions they no longer use.
When I conducted a thorough review, I was shocked. I found monthly subscriptions for streaming services, magazines, apps, and memberships that I rarely touched. Canceling or consolidating them immediately saved me nearly $900 a year.
Final thoughts
Changing spending habits isn’t just about being frugal—it’s about shifting your mindset to value quality, utility, and long-term benefit over temporary satisfaction. When I cut out these five purchases, I didn’t feel deprived. Instead, I felt empowered.
Real wealth isn’t about what you can buy—it’s about the financial freedom you create. By emulating how truly wealthy people approach spending, you can not only save thousands each year but also build habits that serve your long-term financial health.
Give these changes a shot, and you might find yourself not just richer financially, but richer in peace of mind as well.
