Let’s get straight to it.
Groceries.
On average, most Americans spend more money on groceries than millionaires. Yes, on groceries! The average monthly grocery expense for millionaires is $412, while a comparable non-millionaire American family spends $582.1 That means non-millionaires spend about 30% more on groceries than millionaires. Now, let that sink in for a minute.
It’s a common belief that millionaires splurge their money and cash just floods from their fingertips and wallets. But that’s just myth, born out of what we see in Hollywood and the entertainment industry. The truth is, you’ll find more millionaires that penny pinch on everyday things like some of us ‘normies’, and that includes on things even like groceries.
Would it be hard for you to believe that millionaires shop with coupons and live on budgets? If it’s hard for you to understand, you should revisit what it means to be financially literate and think about the habits and skills people without “big breaks” and inheritance may need to become a millionaire and maintain that status.
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- 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.
- And millionaires whose net worth is over $5 million spend the most: $505 per month.
Those with a net worth of over $5 million spend only $88 more than those worth $1 million. Even the millionaires with the highest net worth are spending less than the average American family. It looks like millionaires make more money, save more money and spend less money. Do you think the average American should do the same? Or should we make more money to spend more money?
Now, let’s take a look at the second thing we spend more on than millionaires.
Eating Out.
You may have thought millionaires only spend less than the average American because they eat out more often. Good guess, but that would be false.
On average, Americans spend $3,365 every year on eating out at restaurants.2 Open up the calculator and you’ll find that it turns out to be more than $280—almost $300 per month! Guess what? The average millionaire spends $267 per month on eating out.
Summary
You may have learned to rethink what you assume about the lifestyles of average millionaires. We hope you learned that saving money is very important when it comes to personal finance and how you budget your money on a monthly basis is key.
The average millionaire worked hard to get where they are financially by using the best practices of the financially literate. You can do the same even without a trust fund. All you need is to learn how to make your money work for you through budgeting and investing.
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