Rich individuals are advised to quit ridiculous money habits like overspending on luxury items.

From Yahoo Finance: 2025-06-28 12:01:00

Rich individuals often engage in ridiculous money habits, like owning luxury cars that sit unused, costing up to $150,000 in maintenance. Instead, experts recommend investing in appreciating assets like real estate or index funds for higher returns. Another mistake is leaving millions in a savings account earning minimal interest, losing money to inflation. By moving funds into high-yield savings and bonds, clients can earn 5-7% returns annually.

Wealthy clients also make hasty property purchases without research, costing hundreds of thousands in taxes, maintenance, and missed opportunities. Advisers suggest thorough research, calculation of all costs, and renting before buying. Overspending on designer items is another issue, with clients advised to limit luxury purchases to 5% of income and invest excess funds for passive income generation.



Read more at Yahoo Finance: 4 Ridiculous Money Habits the Rich Need To Quit