Here’s something interesting.
In our Real Money Talk series, we ask Australians from all walks of life about how they manage their money.
We comb through the data and look for trends so we can help you level up with your money.
We shone a space laser on the millionaires of our Spaceship community and that’s when we noticed: they tend to be in on the following six spending secrets.
(We’ve changed their names for privacy.)
1. Millionaires research their purchases
How much do you research your purchases before deciding to buy? These millionaires research a lot.
“In particular, I'll spend a bit of time researching products before purchasing, because I'm also an advocate for paying for quality, so if it means spending a bit more, but we get a better product, then that's what we go with,” said Landon, who has a $2.16 million net worth.
“For big things such as cars, farm equipment etc I usually do the research and try to make good decisions,” said Gil, who has $1.2 million net worth, with $3 million in a family trust.
“I can sometimes be a little loose with meals out and hobbies.”
Benny, who’s worth $1.3 million, researches his purchases “Carefully.”
“I generally research items I am looking to buy and the best sale prices and wait until I can get close to or better than that,” Benny said.
Marty researches investments before he jumps in. He’s worth $1.2 million.
“Yes, I am mindful of costs. However I am more loose with investment money. Happy to take a bet on a wide variety of investments and asset classes (after well considered research of course!)”
2. Millionaires make purchases that align with their values
If you find yourself with some extra money, you might find yourself spending it on places and experiences that align with your beliefs – like these millionaires do.
“I'd say I'm fairly conscious most of the time, peppered with splurges of cocktails and good eating,” said Joy, who has a $3 million net worth, not including companies.
“I'm not overly consumerist and try to avoid buying too many products, and if I do I always look for second hand options!”
Amado, who’s worth $2.16 million, makes family decisions only after interrogating a purchase’s long-term value.
“We're pretty careful as a couple/family with our decisions.
Any expensive item (let's say over $250) usually goes through the ringer on whether we truly need it, will it make us happy, will it not just end up in the bin in six months etc.
And if we're satisfied it meets those requirements, we'll make the purchase.”
For Jennifer, who’s worth $1.1 million, it’s more of a case of utility.
“I'm usually very careful with purchase decisions, basically any money that isn't being used to make more money or used on experiences needs to be a need and not a want.”
Wes, who’s worth $1.9 million, has a different way of prioritising.
“I’m as loose as they come. I can spend $2,000 on having a good time with mates but I can't bring myself to spend $200 on jeans. Priorities.”
Theodore values the cost per use of an item.
“I consider what my motivation is for the item, how much use am I going to get out of it etc.
If I believe I can get it down to a $1 a use or less, I will probably buy it,” he said. He’s worth $1.1 million.
Edmund asks himself the classic question of whether a purchase is a want, or a need. He’s worth $1.4 million.
“Yes I always think about what I’m buying and if it is really what I need.”
3. Millionaires buy with the future in mind
Deana’s worth more than $1 million, and even though she has what she needs, she still makes mindful purchases.
“I don't need much, but if I want something I try and buy good quality so that it will last,” she said.
4. Millionaires have different rules for small and big purchases
Some millionaires find themselves deliberating harder over bigger purchases.
“I have a splurge account that I can use to buy what I like but sometimes I might dip into the daily expenses a little bit,” said Alvin.
“For the bigger spending I aim to build the ‘smile’ account up which provides a good goal.”
Alvin’s worth $987,000 and has $221,000 of NFTs (he wasn’t sure if he could include the NFTs in his net worth.)
Ronda, worth $1.5 million, puts her potential purchases through the wringer.
“Purchases over $250 or so tend to have heaps of deliberation.
For example, our refrigerator had no door handles for about 8 years before we replaced it.
That said, we almost never spend over our budget.
I do a lot of online window shopping, see my cart is $500+ and walk away. If I'm still dreaming of something a month later, I'll ask my partner what they think about the purchase. Usually I get it at that stage. If I don't think about it again, I've saved myself $500+!"
Beryl, who’s worth $4 million, can agonise over purchases, but “Just for big depreciating items, not for small items.”
5. Millionaires have budgets and money rules
Many millionaires rely on money rules to help them manage their money.
Like Dorothea, who’s worth $3.84 million.
“I vacillate. I stick to my monthly spend but that allows for small bursts of spontaneity (like going to a bookshop which I loooove doing and buying a book or two without consideration).”
Sid’s family is similar.
“We have a rule, fairly loose under a certain value, and decisions made together over that value.”
He has a $1.49 million net worth.
6. Millionaires are deliberate with their choices
All in all, millionaires put thought into their money choices.
Abe, who’s worth $7 million, is
“Pretty careful, we seldom splurge out and when we do so, think hard about it, not spur of the moment decisions.”
While Lincoln, who’s worth $1.3 million, says that
“Every big purchase is carefully looked at before we jump in.”
So... how can you spend like a millionaire?
At Spaceship we’re here to help you build your fortune. So how can you spend like a millionaire? Ask yourself these questions.
- Am I confident I’ve done my research, and I understand and really need what I’m buying?
- Does this purchase align with my values? Does it help me live the life I want to live, or be the person I want to be?
- Have I thought about how this purchase might impact me in the future?
- Have I put the required amount of thought into this purchase, with respect to how big or small it is?
- Have I followed my budget and my money rules?
- Is this a deliberate choice I’m making?
For more support, you can check out our Spaceship Learn blog.
Many of these millionaires invest with Spaceship Voyager. Download the Spaceship app to see it for yourself.
