Let’s discuss the question: what would a millionaire spend a million dollars on. We summarize all relevant answers in section Q&A of website smartinvestplan.com in category: Millionaire. See more related questions in the comments below.
Today, we’re going to look at what I learned from my first 100 interviews with millionaires.
And now we can talk about money! Yay!
After I had done a few interviews, a reader suggested that I ask millionaires what they like to buy with their money. After all, we need to spend some of the money we earn, save, and invest.
So, starting with Millionaire #38, I added this question:
What is your favorite way to spend money? What is your guilty pleasure?
And we’ve had some GREAT responses!
Before we get into the details of what we found, here are the main points:
55 millionaires answered the question, though not everyone did, and some of those who did said things like, “I don’t really spend.”
There were 92 references to what millionaires like to buy or how they like to treat themselves.
There were 22 different things that were mentioned 92 times. As we’ll see in a moment, several millionaires mentioned the same things.
The top five were talked about 75% of the time.
Even more so, the top two were mentioned 57 percent of the time.
I guess they all spend their money on the same things.
Here, in order, are the top five:
This was by far the most popular answer, with 60% of millionaires mentioning it. It was also mentioned 36% of the total number of times.
Most people, especially those who have read the series, won’t be surprised by this result, since it happens so often.
Still, I didn’t think it would win by this much.
But it makes sense. Most people like to travel, and millionaires have plenty of money to do so.
Let’s find out why millionaires like to travel and spend money on it.
From Millionaire 50, we’ll start with this:
We’d rather give each other experiences than gifts.
Last year, our big splurge was to fly to Colorado, land at the country’s highest airport, Leadville, and spend a week with friends in Breckenridge hiking and biking.
Then, we flew to Torrington, Wyoming, for the day to see the total solar eclipse. In one trip, you can check off two things from your list.
Sounds like fun, right? Colorado is great, and Breckenridge is my favorite place there.
Here’s another millionaire 70 question:
My big splurge is a trip.
Every three months, I go on vacation. When I do, I like to stay in really nice hotels in Mexico, the Caribbean, and Hawaii.
I won’t cut back on my vacation time or where I stay.
I can really relate to what you said about quality. I’d rather take one nice vacation than two where I had to stay in a hostel.
I don’t have to stay at the Ritz, and I wouldn’t want to, but I do like it when the place we stay is nice.
Here’s what millionaire 77 has to say:
I love traveling. I spend about $45,000 on trips every year.
I love going to a new country, learning about a new culture, meeting interesting people, and of course, the beautiful beaches!
I myself love a good beach!
I might be able to spend up to $45k on travel one day, but I’m more likely to stop at $20k.
Here’s another way to look at Millionaire 78:
We love going on cruises. The header image on my website is a picture I took of the ocean while we were on a cruise. I did say, though, that we’re naturally cheap, and that comes into play when we go on cruises.
We don’t just choose one and leave. We look around for a great deal, but we always end up with a balcony (once you’ve had a balcony, you can’t go back!).
We’ll find a cheap flight and spend the night before at a cheap hotel. We don’t buy any upgrades for the ship, and we don’t buy much in the ports either. But we love the experiences and will go to restaurants in the ports and eat and drink as much as we want.
We’ve found a good balance, and we never feel like we’re missing out. It might not work for everyone, though, and that’s fine… Chacun à son goût!
This combines the desire to travel with the desire to get a “good deal,” which I fully support.
We’ve gone on three cruises and really like them. I think we might be getting a fourth one soon.
And one last thing from Millionaire 95:
Vacations. I probably spent between $20,000 and $50,000 a year on family vacations over the last 15 years. My children have been to more than 35 countries on 5 different continents.
Wonderful times, events, and memories.
The memories can’t be bought. Our trips are always some of the things our family talks about the most.
2. Food/going out to eat
This one surprised me a bit, but it seems that millionaires like to eat good food.
The words “food” and “eating out/restaurants” were mentioned together by 35% of the millionaires, making up 21% of all the times they were mentioned.
This answer could be said in a few different ways.
Millionaires sometimes meant to eat out, and sometimes they meant to eat at home. I’ll show you examples of each.
Here is what millionaire number 59 has to say about eating out:
We both like to eat good food out at restaurants. When it comes to “wants” vs. “needs,” this is the one thing that costs us the most. There is a cost to hedonism.
Another example from Millionaire 68:
As I said, our food budget has never been looked at closely. It’s something I really care about too much to give up.
We eat out too much and buy too many groceries, but I don’t mind.
The last one is from Millionaire 81:
We also like to eat gourmet food. I don’t think twice about spending $250 per person on a meal every couple of months, but I think $60 for 4 hamburgers is a waste.
For $250 per person, that must be some really good food.
Let’s talk about people who like to spend money on food they eat at home:
Here’s millionaire 53’s comment:
Spending money on food is by far our favorite thing to do.
My wife is a great cook, and it’s a lot of fun for us all to try out new recipes.
We also like our pressure cookers and cookbooks (America’s Test Kitchen).
Millionaire 63 has a similar one:
Food and wine are the only things we don’t skimp on.
In our kitchen, there are always meats, cheeses, seafood, fresh fruits and vegetables, red wine, and a lot of dark chocolate.
Yum! I want to go there and see it for myself!
We’ll talk about wine soon…
It seems like a given that millionaires love their cars, doesn’t it?
But this answer is a big step down from the two before it. Only 15% of millionaires talked about cars.
Let’s start by saying what most people would say when they hear the words “millionaire” and “cars.”
Here are some of millionaire 39’s thoughts:
I have a Ferrari, a Porsche, and an old Corvette.
My philosophy is to enjoy my cars now, because when I retire, I’ll get rid of the expensive ones (but keep the old Corvette) because they raise my monthly costs.
Another example from Millionaire 58:
I really like German cars, and I always keep two for myself.
I don’t know what people do with more than one car. Different days to drive them? At the moment, I only drive my car about once a week.
What good is money if you can’t spend it on yourself? From millionaire 67:
Also, after driving a small import for about 14 years, I just bought my dream car with cash: a convertible sports car made in the United States.
Lastly, here’s another thing ESI Money readers would expect from a millionaire car owner: a great car that was bought well and kept in good shape. From millionaire 99:
Luxury cars … I buy them used because I keep them for a long time.
My rule of thumb is to buy a car that is between 3 and 5 years old for about half of what it cost new.
I own a 16-year-old luxury SUV and a luxury car right now (11 years old). They are still worth about $30,000 all together.
I usually pay cash for my cars, but because the rate on this one was 1.49 percent, I took out a loan for 5 years (paid it off this year).
Most likely, my next car will be a used Tesla, and I will probably only have one car.
I like nice cars, but I don’t think I’d want to own one. I’d worry that someone with an old car like mine would scratch it.
As promised, let’s talk about wine now.
Some people say it’s hard to have a good meal without a good wine, so you might expect this to be near the top.
However, only 9% of millionaires said that wine was a thing they spent money on.
Millionaire 48 said the following about it:
I have a secret desire to have a big wine cellar. That can become a very expensive hobby, but we are trying to keep it in check by limiting ourselves to one bottle a week and a few special occasions a year.
Our secret treat is good food and wine.
Millionaire 49 collects wine:
About 50 bottles of wine are mine (nothing too expensive, I bought all of this while visiting wineries during our travels).
And finally, millionaire 85 gives a more thrifty answer:
I like the taste of good wine, and sometimes I spend a lot on a bottle.
I also like to put it in my full-size wine refrigerator and let it age.
Saving, letting it age, and looking forward to it is part of the fun. It also keeps me from drinking it too often, which is good for my health and my wallet.
Even though I don’t drink wine, I’m sure a lot of you can relate to these ideas.
Are you shocked by this one? I’m not sure if I was ready for this one or not.
Only 7% of millionaires talked about clothes, so it wasn’t a big part of the answers.
Millionaire number 41 wrote the following:
I also spend more than I should on clothes. This is partly because I work in management and partly because I like cute shoes.
And millionaire 79 agrees:
I love getting new clothes, especially when I’ve lost weight and need them. It’s exciting to go to work in a new suit, shirt, and tie.
We’ll have to agree to disagree, then.
I don’t find it exciting to wear a suit and tie anywhere, but I also wear shorts and athletic gear most of the year, so take what I say with a grain of salt.
Many other things were brought up, but they didn’t make the top five.
Here is where we can see how different and unique the millionaires are.
All the other things on the list are:
- Art/art supplies
- Black chocolate
- Outdoor gear
- Events in sports
What do most millionaires spend their money on?
For more than 200 years, investing in real estate has been the most popular investment for millionaires to keep their money. During all these years, real estate investments have been the primary way millionaires have had of making and keeping their wealth.
How much does an average millionaire spend?
Millionaires in the $1–1.99 million range spend $417 per month on groceries. Millionaires in the $2–2.99 range spend $27 less, or $390 per month. Millionaires in the $3–3.99 range spend $361 per month. Millionaires in the $4–4.99 range spend $388 per month.
Billionaires VS Millionaires: What Do They Spend In A Day
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Do millionaires have a million dollars?
A millionaire is someone whose net worth is equal to one million (or more) units of currency, usually the U.S. dollar. To know whether a person is a millionaire, you typically take their net worth into account.
What do most millionaires do?
What Do Most Millionaires Do for a Living?
|Under 50 Years Old||50 – 70 Years Old||Over 70 Years Old|
|4. Consumer & Business Services||4. Technology||4. Real Estate|
|5. Real Estate||5. Manufacturing||5. Food and Beverage|
What do millionaires do all day?
Almost all self-made millionaires report sleeping seven or more hours every night, and nearly half wake up at least three hours before their workday begins. A significant percentage of self-made millionaires do 30 minutes or more of aerobic exercise every day, like running, jogging, walking, or biking.
Do millionaires put their money in the bank?
Many millionaires keep a lot of their money in cash or highly liquid cash equivalents. They establish an emergency account before ever starting to invest. Millionaires bank differently than the rest of us. Any bank accounts they have are handled by a private banker who probably also manages their wealth.
Do millionaires buy new cars?
81% of millionaires purchase their vehicle and only 23.5 percent actually buy new cars. They understand that cars are depreciating assets, especially brand new ones. Most of the millionaires surveyed said they never spent more than $65,000 on an automobile.
Do millionaires use credit cards?
Millionaires use credit cards like the Centurion® Card from American Express, the J.P. Morgan Reserve Credit Card, and The Platinum Card® from American Express. These high-end credit cards are available only to people who receive an invitation to apply, which millionaires have the best chance of getting.
What age can you retire with $3 million?
|Annuity Purchase Date||Annual Income At 65|
What is a good net worth by age?
Average net worth by age.
|Age of head of family||Median net worth||Average net worth|
What should my networth be at 35?
At age 35, your net worth should equal roughly 4X your annual expenses. Alternatively, your net worth at age 35 should be at least 2X your annual income. Given the median household income is roughly $68,000 in 2021, the above average household should have a net worth of around $136,000 or more.
What do billionaires do for fun?
Philanthropy is the most popular hobby among billionaires, according to Wealth-X’s 2019 Billionaire Census. Sports, boating, and travel are also popular pastimes among the richest people in the world, according to Wealth-X.
Do millionaires have debt?
They don’t owe anything to the bank, so every dollar they earn stays with them to spend, save and give! Debt is the biggest obstacle to building wealth.
How I spend my $1 million income. (as a millionaire)
Images related to the topicHow I spend my $1 million income. (as a millionaire)
What field has the most millionaires?
1. Financial Services. The financial service industry has created the most number of millionaires since modern times, according to the Wealth Report. A lot of money is made in the business of money.
Do millionaires watch TV?
Millionaires don’t watch TV
Only 23% of millionaires watch more than an hour of TV a day, compared with 77% of everybody else. That leaves time for wealthy folks to do other things that broaden their financial horizons.
What is the first thing rich people do?
Wealth Habit #1: Save systematically and automatically.
Since earning more than you spend is essential to wealth building, you can increase your financial success by saving first. Prioritize saving and if you can, automate it so that saving happens without any action necessary.
Do billionaires sleep?
Having a set morning routine can help jump-start your day — it even works for billionaires. Both Jeff Bezos and Warren Buffett prioritize sleep and aim to get eight hours per night.
Does millionaire include House?
Note well that to be considered a millionaire by the standards of wealth research, a household must have investable assets of $1 million or more, excluding the value of real estate, employer-sponsored retirement plans and business partnerships, among other select assets.
How much is too much in savings?
Another red flag that you have too much cash in your savings account is if you exceed the $250,000 limit set by the Federal Deposit Insurance Corporation (FDIC) — obviously not a concern for the average saver.
How do millionaires live off interest?
Examples of cash equivalents are money market mutual funds, certificates of deposit, commercial paper and Treasury bills. Some millionaires keep their cash in Treasury bills that they keep rolling over and reinvesting. They liquidate them when they need the cash.
What kind of car does Jeff Bezos drive?
Bezos’ Honda Accord comes with a 2.2-liter 4-cylinder engine that makes 145 hp. Honda also equipped the Accord with automatic transmission, power locks, and air conditioning.
What does the average millionaire drive?
But for the majority of America’s wealthiest people, the popular trend is to go with a mainstream car. According to Dave Ramsey, about 61 percent of America’s wealthiest people actually drive Hondas, Toyota, and Fords.
Are BMW owners rich?
2. BMW 328. Along with the Mercedes-Benz, the BMW is another nameplate that discriminating drivers of high net worth insist upon when they want reliability and luxury. So it’s not surprising that the 328 is a favorite among the residents of some of the nation’s wealthiest zip codes.
How do very rich people spend their money?
Financial advisor Mark Scribner says rich people waste money on luxury cars and household staff. Millionaires also spend too much money treating their friends and family to expensive dinners.
What do the rich do for fun?
- Skiing. Skiing is a favoured pastime of the rich and famous. …
- Flying. …
- Car racing. …
- Polo. …
- Owning a vineyard. …
- Sailing. …
- Owning exotic pets. …
SPENDING $1,000,000 IN 24 HOURS!!
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How much do billionaires spend on vacation?
There’s a reason they’re called the leisure class. A new study found that American millionaires plan to spend an average of $13,429 on leisure travel and will take six vacations this year.
How much money do you get in a lifetime?
But that small amount adds up over time. Given that the average person will touch over $2.2 million dollars over their lifetime, and a high-income earner will touch over $6.7 million, it pays to spend a bit of time creating a solid system to manage income and spending.
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