Four Things You Should Never Waste Money On

There is a plethora of content — ranging from social media posts and videos to actual television shows — detailing what wealthy people do with their money. While it can be fascinating to see how the rich spend their money, it can also be beneficial to see what they don’t spend money on, and why.

TikTok’s popular “Old Money Aesthetic” trend sheds light on some of the luxurious lifestyles showcased by the rich while also mixing in feedback from some who grew up with money, but commit to living more modestly (or spending strategically).

Here are 4 things TikTokers say the rich don’t usually spend money on:

In one example, Madison Elsewhere — a popular TikToker who grew up in an affluent neighborhood — posted a viral video about the “weird” messages about wealth and status she witnessed (and internalized) as a child.

Madison said kids in her community went to therapy and boarding school, and she remembers her mother saying her therapist had “made it” because she drove a Range Rover. Madison shared that while wealthy people do buy nice cars, one thing they don’t buy is handbags with logos on them.

According to Madison, flaunting logos is perceived as tacky and can even give off a “trying too hard” vibe. A commenter under the video chimed in with support and said, “All accurate in CA. The people with REAL money never wear logos, ever.”

In another TikTok video, Madison also touched upon the topic of makeup and skincare. She mentioned that heavy makeup seems to be frowned upon in wealthy circles. In her video, she stated, “For skincare and makeup, it’s a flex to not need it.”

This perspective highlights an interesting point about natural beauty and self-care. Instead of amassing a vast collection of makeup and skincare products, she suggested that the wealthy individuals she grew up around would often invest in quality essentials from the drugstore — but not overdo it.

Taking a different approach via TikTok, Max Tornow — a successful business consultant and coach — shared an interesting piece of advice he received from his mentor when discussing how many people seek to buy luxury goods with money earned from their jobs.

“What you should do instead is buy luxury goods only with the money from your assets and investments, because only then it’s bought with money that you made out of nothing.”

Tornow’s underlying advice is for people to focus on strategic investments. Rather than splurging on luxury items with hard-earned cash, the wealthy prefer to use the passive income generated from their investments. By doing so, they ensure that their spending does not deplete their primary sources of income, thereby securing their financial future.

Your Rich BFF, another TikTok personality, provided insightful advice on minimizing tax burdens. She explained that wealthy individuals often leave their loved ones assets like stocks and properties instead of cash. This strategy helps them avoid paying more capital gains taxes when they receive their inheritance.

This method of wealth transfer is not only tax-efficient, but also ensures that the inherited wealth continues to grow. By leaving assets that appreciate over time, the wealthy can secure the financial future of their heirs while minimizing tax liabilities.

Understanding the nuances of tax laws and inheritance planning can significantly impact your financial health, but it’s always best to speak with a tax professional and/or financial advisor to discuss the details of your unique situation.

Source: GOBankingRates