Millionaires waste their money easily because they have tons of money to waste. Not all millionaires are the same, but some certainly have a real thing for chucking money at seemingly wasteful projects, purchases and experiences.
Here are some key ways millionaires waste their money:
1.Superyachts
A yacht, or any boat, is surely a practical purchase, a home on the ocean, a way to get around right? However, in the case of superyachts, usually the purchase is made as a status symbol, recreational use is not a consideration. According to a Forbes article from 2015, the cost of a superyacht is around $275 Million, then gas, maintenance, taxes, crew costs and insurance adds around 10% of the original yacht price per year to maintain. So the status in this instance, comes at a supremely high price. Is it actually worth it?
2. By Making Common Financial Mistakes
Although many millionaires and billionaires are great with money, some make common mistakes which end up meaning money is simply wasted. Common financial mistakes might include:
● Impulse buys
● Avoiding checking annual financial reports, so money leakages are not seen
● Not investing money where necessary so the money they have only sits or gets spent, and never grows
● Being the guarantor on guarantor loans for their irresponsible offspring who never pay back the money.
● Borrowing money or using a credit card without checking whether the rates, charges and fees are the best deal.
● VIP charges where everything is super expensive just because of the VIP label
3. Private Islands
A private island seems to be the currently trendy purchase of any self-respecting billionaire. They can be persuaded it's a practical purchase because they can exclude the press or public to maintain their privacy. However, that is a lot of cash to splash on a piece of land which commonly cost millions, and that is often before anything is even built on it.
4. Family Careers
Many millionaires are famous for being great with money… until it comes to supporting their families careers. It makes sense that if they are going to have a soft spot, it is going to be their children or spouse, but millions of pounds is a lot to chuck at time in the studio for a kid who can't sing, oh yes that has been done.
5. Property
Property is often a great investment, however it can also be a huge way for the super rich to waste money. They can spend billions on making a mansion which they never use. They can also pay rent or a home loan on properties they like for years and years but only stay in them for a week or two each year. They even buy homes that sit empty for years, with the money invested simply doing nothing, or getting wasted on unnecessary home improvements for no good reason at all.
There are so many ways millionaires waste their money. If we can learn anything, it is that money can buy a superyacht, a private island, VIP service and a mansion, but it cannot buy common sense….
