8 Things Millionaires Invest Money on

It is a common misconception that millionaires and billionaires blow their money by splurging on ridiculous things and extravagances. 

While that may indeed be true for some of the most visible among the such rich, most wealthy people prefer to spend their money rather prudently on things that would enrich their lives. 

Make no mistake, most of those who have gained millionaire status do spend good money to live comfortable lives. After all, what use is all that money if not enabling a good life. But most people who have made good money, by sheer dint of hard work and perseverance, understand its value, and so, are prudent spenders.  

So, what exactly do millionaires and billionaires spend their millions and billons on? 

Education 
High quality education makes it possible to earn more. And once people have made big money, they want their kids to attend even better schools and colleges than they did. On average the rich spend significantly more money on education than do the middle and the lower middle classes, even if the proportion of their spends on education in relation to their incomes and net worths is much lower.   

An elite school or college gives a millionaire’s son or daughter access to a network of peers who are similarly already on the high table. This tends to help them immensely over the course of their working lives irrespective of whether they are working for a corporate or managing their own business.  

Retirement 
While they try and ensure their kids have a bright future, millionaires also try and make sure their spouses and themselves also have a comfortable retirement. In fact, there is a huge gap when it comes to retirement savings & investments of the affluent and the middle class. 

Unsurprisingly, high income earners invest a much higher proportion of their income towards retirement. This helps them build a solid nest egg for their golden years.  

Pets 
Over the past couple of decades, as people have seen their incomes and net worths grow, a large number of Indians have begun adopting exotic pets, including expensive breeds of dogs and cats. This has been true of almost all such societies that have seen a rise in income levels and a new breed of HNIs coming up.  

In pre-liberalisation India people mostly either adopted local Indian dog and cat breeds or even mongrels or at best one could find Pomeranians or Indian Spitz that were relatively cheaper to maintain. Now, across the country it is common to see wealthy households adopting such expensive foreign dog breeds as Saint Bernards, Chihuahuas, Huskies, Dalmatians, Cane Corso, German Shepherds, Dobermans and Labradors, just to name a few.     

Experiences and Events 
HNI families typically spend lavishly on entertainment and sporting events as well as social events such as wine tasting, food shows, fashion shows, horse racing, concerts, museums etc. The wealthy, both old money as well as the nouveau riche typically tend to spend significantly more than middle and lower middle classes on such experiences and events, which are often used to network with other people in their peer groups. Even when at such events, the wealthy can be seen in exclusive enclosures that have either been paid for from their own money or they have acquired passes for such places by leveraging their networks. 

Vacations
HNIs typically spend considerably more on vacations than people lower than them in the economic strata. On vacations the wealthy typically spend on travel, luxury hotels, good food and drink, entertainment, partying and such like. Spends on vacations had come down substantially during the pandemic, but have since risen back to near pre-pandemic levels again. 

High quality products and services
HNIs typically indulge in buying high quality and high-end products be they clothes, footwear and other personal accessories, electronic gadgets including phones, laptops, tablets, household appliances or for that matter cars and bikes.  

Even when it comes to availing of services, HNIs typically go for the best. So, they would rather fly business class than economy as it is more comfortable, and saves them time since they get priority check ins and even concierge services at the airports and at hotels, pick and drop services as well as other forms of secretarial assistance. Whether travelling for work or pleasure, they typically tend to stay at high end hotels that offer them the best possible services.  

HNIs also prefer living in exclusive high end gated communities that offer them all the basic amenities including multi layered security, manicured lawns, well maintained buildings, club houses, swimming pools, sports and recreational facilities and in some cases even medical facilities including geriatric care.  
 
The idea is simple: such high-quality products are long lasting and high-end services make their lives more manageable. For that, the wealthy do not mind spending some extra money that may be a tiny proportion of their net worth and may therefore not pinch them much.  

Healthy food
For the wealthy health is a priority and to keep themselves in good shape both physically and mentally, they consume food of the best available quality.  

In fact, HNIs and millionaires spend their money differently when it comes to food. Most poor, middle class and lower middle-class people tend to eat a lot of unhealthy junk food and therefore have a higher calorie intake as compared to the well-heeled who consume organic fresh food that is free of pesticides, insecticides and fertilizers and is low on calories. The wealthy often take the services of a dietician and fitness trainer and have a strict diet and exercise regimen that helps them remain in shape and allows them to be more productive and, in turn, earn more.  

Good food and good health are therefore directly linked to one’s ability to generate more wealth. And this is one virtuous cycle that the wealthy are only too aware of and do not ignore.  

Healthcare 
Like we mentioned, HNIs and millionaires make sure that they and their families and other kin are in the pink of health as much as possible. For this, apart from healthy food and regular exercise, they also make sure that they have regular health check-ups and have a designated set of doctors who they can call in case of an emergency. They also invest good money in the best possible health insurance plans that are comprehensive and allow them the best possible hospital and post-hospital care that money can buy. Often the wealthy also travel overseas for the treatment of specific health ailments for which some of the best specialists may not be available in their country of residence.