I’m a Self-Made Frugal Millionaire: 6 Things I Never Spend Money On

Achieving financial success and accumulating wealth is often seen as a combination of hard work, strategic savings and smart investments. While every millionaire’s journey is unique, there are common (and unusual) spending habits that many self-made millionaires share.

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Unsurprisingly, saving plays an important role in their wealth building strategies. Here are six things self-made millionaires never waste money on.

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1. Sports equipment

Many may assume that the rich will buy the best sports equipment for hobbies or fitness routines. However, David Ciccarelli, founder and CEO of Lake, an online vacation rental platform, says he doesn’t buy sports gear he probably won’t use often.

I won a golf bag that I use and the clubs were either secondhand or again, items I won at charity golf tournaments, Ciccarelli said. I only golf a few times a year if that’s the case I can’t justify the investment.

2. Financial Advisor Fees

While financial advisors can provide valuable insight and guidance, fees are often associated with these services which can add up.

I never spend money on a financial advisor that charges an asset below the management fee, said Jim Wang, Founder of Wallet Hacks.

Wang worked with a financial advisor who paid $4,000 a year. After five years, he paid $20,000 in management fees.

The biggest benefit was having someone look at our portfolio and give us feedback on different allocations for long-term planning, Wang added. But the funds themselves were more expensive than something like Vanguard or Fidelity, and we now use a fee-only financial advisor that we pay hourly.

3. Gym memberships

Physical fitness is important, but for some self-made millionaires, that doesn’t mean paying for a gym membership is necessary or necessary to stay in shape.

I’ve lost money on gym memberships and won’t do it again, says Andy Hill, a podcaster and founder of MarriageKidsandMoney. Hill used to work in sales, and he and his wife were able to grow their net worth significantly over the course of 10 years by paying off their mortgage, saving aggressively, and investing consistently. They reached the net worth of $1 million in 2020.

I know my habits and that I don’t tend to visit the gym more than a few times, so I prefer not to spend money, Hill said. Today, I prefer to go for a run or exercise for free with Bully Juice’s YouTube videos.

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4. Hair services

Regular visits to high-end salons can add up quickly. Self-made millionaires may have more room in their finances to pay for these services, but some surprisingly choose to skip the cost altogether.

“I don’t spend money going to the hairdressers because the average haircut for a black woman is $200,” says Ange Matthews, a personal finance expert and wealth strategist for The Method of Happy Investors.

She says she started learning how to style her hair from YouTube videos four years ago.

If I saw someone with a style, I’d ask what it was and Google the tutorial online, Matthews said. At first it was really hard and took hours, but after a month or two it got easier.

5. Luxury bags and shoes

While it may seem like millionaires are constantly decked out in luxury accessories, some self-made individuals avoid overspending on high-end bags and shoes. They understand that these items often come with high prices and offer little functional value beyond their brand name.

We don’t buy clothes, shoes, jewelry, bags or other expensive fashion accessories, say Brock and Becky Waterman of FIRE Travel Family. Instead, we buy thrift and usually second-hand clothes at garage sales, thrift stores, and from friends and family.

I actually bought luxury bags and shoes before I pursued financial freedom, but I only did it to look impressive, says Bernadette Joy, a debt-free millionaire and founder of Crush Your Money Goals. Now, I only buy good quality items from lesser-known brands and consider my retirement investments my new luxury handbags, Joy said.

6. Streaming Services

It’s easy to rack up multiple subscriptions these days, each costing a monthly fee.

I have a subscription to a service that specifically offers Asian content that I can’t get in the US, says Joy. Otherwise I use YouTube just for fun.

Joy also recently started the habit of screen-free Sundays, where she locks her phone in my car and challenges herself to go the entire day without looking at TV, computer or phone screens.

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It was a great reminder that there is so much to see in the real world, she said.

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