It’s one thing to be rich — and it’s an entirely different thing to stay that way. Thankfully, those who have wealth are always looking for ways to be smarter with their money. And one of those ways is figuring out how to save more.
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“Consumers are getting savvy — they know they need to save and invest their money if they want to make the most of it,” said Erika Kullberg, attorney and personal finance expert.
Below are some ways the rich are newly saving money and how they’re choosing to spend differently.
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Cutting Out Gym Memberships
“A trend I’ve noticed recently is more and more ‘rich’ people getting rid of their gym memberships,” said Jake Hill, personal finance expert and CEO of DebtHammer. “A lot of people — regardless of wealth status — end up not utilizing their gym membership enough to actually be getting the benefits out of it.”
However, he noted that wealthier individuals are often able to afford alternatives to gym memberships.
“At the same time, wealthier individuals are also more likely to have at-home gym equipment to use, eliminating the need for a gym membership.”
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Picking More Affordable Vacation Locales
While the wealthy traditionally enjoy numerous overseas vacations each year, Harrison Tang, CEO and co-founder of Spokeo, said there is now a distinct trend of picking more cost-effective options.
For example, the rich are starting to frequently choose neighboring sites over lavish international travel.
This frugality shows a cautious approach, Tang explained, as wealthier people try to reduce their financial risk and protect their assets.
Recognizing the significant impact that lengthy travel may have on savings is a big motivation for them, he said — which ultimately plays a big role in them considering more nearby destinations.
“This shift reflects a broader trend among the wealthy to prioritize financial prudence in the face of economic uncertainty, demonstrating a readiness to adapt.”
Reducing Luxury Spending
“Lately, I’ve been loving the TikTok videos where people share the luxuries they’re cutting back on to save money,” Kullberg said. “What I’m seeing a lot of wealthier individuals cut from their budget so they can make more financial progress is any kind of recurring cost that is a luxury, not a necessity.”
She said she’s observed this trend, especially in wealthier women.
“I’m seeing a lot of them quitting their regular manicure habit. With how expensive beauty treatments are these days — and factoring in tipping on top of that — it’s no surprise that many consumers are deciding that professional manicures and pedicures are not worth the money.”
Carter Seuthe, CEO of Credit Summit, has equally observed a change in spending habits.
“I have seen many wealthy people over the past year or so starting to cut back on discretionary or convenience expenses,” he said. “One big example of this is cutting back on, or cutting out entirely, a cleaning or dog walking service.”
Saving on Entertainment
“I’ve witnessed the same attitude about entertainment subscription services,” Kullberg said.
While many consumers choose to keep one or two of their favorite subscriptions, they aren’t keeping up with all these services anymore, she added.
“I feel like these are both great examples of lifestyle changes that can really move the needle. Any time you have a regular but non-necessary expense taking up room in your budget, you’re moving your money away from places that can help you grow your cash,” she said. “When you cut some expenses from your budget, allocate that cash to a high-yield savings account so you can watch it grow.”
Opting for Smart Tech Rather Than Home Remodels
“I’ve also noticed more wealthy people cutting back on home remodels/renovations,” Seuthe said. “Or focusing on smaller and more cost-effective projects for improving their homes. Financial uncertainty and inflation do impact everyone, even the rich, and cutting out some of the excess in their monthly budgets can help them hold on to more of their money.”
Rather than home remodeling investments, experts noted that rich folks are more inclined toward putting money in smart home technologies, which can bring down their long-term cost savings and provide better home service.
By implementing a smart home system, they can control the inside temperature before getting home, for example. Especially in winter, coming back to a cozy and warm place is especially convenient. Solar panels also help them bring a reduction in their long-term energy costs.
They’re Focusing on Emergency Savings
“Since the pandemic and the economic downturns that followed, us wealthy folks have realized even we can struggle if we don’t have emergency funds,” said Syed Lateef, business coach and CEO of SyedBNB.
“My own Airbnb business was hit hard during the lockdowns, but luckily, I had a solid business sense and an emergency fund to fall back on.”
Because of that experience, he said rich people are now actually focusing on replenishing and expanding their emergency funds.
“Honestly, it’s hard to grow your wealth if you have to dip into your investments for every unexpected cost, or even worse, use a credit card,” he said.
“Rich people are really good at setting up and keeping an emergency fund. Many financial advisors suggest having six months’ worth of expenses easily available, like in a savings account. But some of us millionaires go even further, saving up to 25% of our money for emergencies.”
They’re Prioritizing Giving Back
According to experts, rich people are becoming more mindful about saving money for charity and helping others.
“There’s a stronger sense of responsibility to give back nowadays,” Lateef said.
He observed that the COVID-19 pandemic, climate change and refugee crises from Ukraine and the Middle East have highlighted the urgency and shortcomings in charitable giving.
“As a millionaire, I’m personally involved in helping communities in India and Pakistan by funding clean water wells through organizations like Thaakat Foundation and Human Concern International. I’m saving for this because I feel it’s important to give back. This spirit of philanthropy not only benefits those in need but also helps me avoid financial hardship, as I believe that generosity generates positive karma.”
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