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How Do the Wealthy Budget Differently?

How the Wealthy Budget Blog

Keen to know how wealthy people manage their money?

Turns out, it’s less about having heaps to spend and more about making smart choices. They focus on what matters, avoid wasting money on things that don’t add value, and prioritise growing their wealth.

Let’s see how millionaires budget differently and what we can do to level up our own finances...

1. Needs vs Wants

  • Millionaires: Keep essentials to 25%, spending mindfully on basics without overspending.
  • Average Person: Needs take up 40%, often rising with debt or lifestyle creep, squeezing savings.

2. Keeping Wants in Check

  • Millionaires: Only 10% goes to wants, choosing things that add value.
  • Average Person: Around 55% goes here—dining out, gadgets, etc.—limiting room for growth.

3. Prioritising Investments

  • Millionaires: Invest 65%, focusing on wealth-building in shares, property, and business.
  • Average Person: Just 5% goes to investments; even a small start can grow wealth over time.

Key Takeaways for Growing Wealth

  • Watch Lifestyle Inflation: Direct some “wants” money to investments.
  • Invest Consistently: Even small amounts compound over time.
  • Set Priorities: Focusing on needs and investments builds a strong foundation.

Extra Read: The Millionaire Next Door by Thomas J. Stanley explores how most millionaires live modestly, budget wisely, and control wants to build wealth.

Want to find out more? Simply give Mark Jones a call on 0800 404 202 or send him a message

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