13 Ways the Wealthy Overspend (But Frugal People Know Better)

When it comes to spending money, frugal and wealthy people often inhabit entirely different worlds. Those with money to burn are likely to pay more for convenience and brand names, while those on a budget find ways to save without compromising on quality.

From DIY projects to shopping for clothes, paying more doesn't mean you end up with a better result than the pricier alternative. Here are 13 things wealthy people do that are often considered foolish ways to waste money by more frugal individuals.

When looking to save money, frugal travelers know to fly midweek, use travel points, and avoid travel on holidays and during holiday seasons. Wealthy travelers, on the other hand, are likely to book whenever they want to travel and opt for premium options without looking for a bargain.

There's a ton of sales you can hold out for beyond Black Friday, and if there's an item a frugal shopper wants, it's a bargain. Some stores can offer up to 40% off on big-name appliances on Labor Day, for instance, which makes a big difference to the final price.

Americans spend an average of $44.50 per month on takeout coffee, totaling $534 a year. A home-brew coffee averages 26 cents or $94.90 a year if you make one every day, which is over 20% cheaper and something frugal people choose instead.

Fast food meals used to be a budget-friendly option, but now they cost an average of $11.56. If you buy lunch every day, it soon adds up. Frugal people are more likely to bring a homemade lunch to work as opposed to buying a prepared meal every day.

If there's something you use all the time that goes on sale, it's much better to purchase in bulk and make the most of the discounts. Wealthy people might purchase convenience-sized items from their nearest store, rather than shopping for a bargain and buying them only when needed, regardless of the cost.

When so many things require subscriptions these days, it can be easy to lose money without even realizing it. Frugal people are careful with their money and are likely to audit their spending, which can help them identify big price hikes. A recent FinanceBuzz study found that Netflix costs have risen 94% over the last couple of years.

Wealthy individuals, on the other hand, may not notice the small recurring charges or even worry about them.

Frugal people cook meals at home instead of dining out all the time. Many wealthy individuals regularly eat out or order takeout instead of cooking a healthy meal. This can soon add up to hundreds and even thousands of dollars. The average household spends around $500 a month on groceries, whereas a meal out for two can range from $30 to $200, depending on the location.

Instead of calling a repair person to make minor tweaks at home, frugal people look for online instructions and teach themselves. A bathtub faucet handle, for example, might cost around $13 and can be replaced in just 30 minutes.

Wealthy individuals often outsource work, even if it's something simple that can be done quickly.

As long as a car is reliable and has the features you need, why pay more just for a newer model? Frugal people tend to drive older vehicles long past their typical trade-in point.

Wealthy people often lease or buy new models every few years, even if their current car is in perfect working condition.

From online marketplaces to thrift stores, you can find bargains when shopping second-hand. Frugal shoppers often purchase second-hand items for a fraction of the price, whereas wealthy buyers tend to opt for brand-new, top-of-the-line goods instead. Buying used furniture, for example, can save you up to 70% as opposed to purchasing brand new.

From groceries to clothing, frugal people tend to opt for generic or store-brand products, while wealthy shoppers tend to stick to high-end or designer labels. Often, these items are manufactured in the same factory or contain the same ingredients, but they're marketed differently.

Cashback and discount codes are something frugal shoppers look for to save extra cash on purchases. Wealthy buyers, on the other hand, may not take the time to look for deals and just buy items at the current price.

Instead of purchasing new books, frugal people borrow books and audiobooks from their library. In recent years, those with Kindles can do this remotely. Less money-conscious individuals typically buy books brand new, even though they might just read them once before they gather dust on a shelf.

Wealthy people often enjoy brand-new goods and the convenience of outsourcing tasks. But frugal shoppers usually get the same results (if not better) and manage to get more bang for their buck.

It's important to remember that living frugally isn't about being cheap. It's about being intentional and resourceful. Most of the habits in this list don't just cut costs; they also encourage self-sufficiency, creativity, and the ability to withstand economic downturns with greater resilience.

Whether you're tightening your budget or inspired to rethink your spending habits, learning to live more frugally can be a really smart financial move.