Is It Worth Spending Like the 10% Wealthiest Households If You're Middle Class?
The top 10% of households don't necessarily live flashier lives than everyone else, but many do live more optimized ones. The difference is where they spend their money and why. In most cases, high-income earners tend to direct their money toward things that save time, compound wealth and improve their well-being.
Here's what these households spend money on that everyone else skips.
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Time-Saving Services
If there's one thing people in the top 10% income bracket value, it's time. That's why they'll spend money on tasks that would consume too much of their day. Think of things like cleaning, grocery delivery, meal prep services and even virtual assistants to cover scheduling and reservations.
"If a top 10% family can save even a few hours per week, they will spend the money to do so. What matters more is spending that time with family or on downtime so that they can relax and recharge," said Ilir Salihi, Founder of Gold IRA Secrets. "The long-term benefit is that their physical and mental health remains intact far longer, leading to a higher overall quality of life and more productive working years."
Education and Skill Development
Wealthy households are more likely to send their kids to private schools, pay for private tutoring and skill development programs into adulthood. This is not just for their children but also themselves. They'll invest in executive coaching, professional certifications, advanced degrees and specialized training programs that keep their skills competitive in their industry.
Asset Accumulation
Most affluent households direct a larger portion of their income to appreciating assets. Whether it's real estate, businesses, retirement accounts or alternative investments. According to recent research from CEG Insights, wealthy families often find deep satisfaction from saving and investing.
While they have a high risk tolerance, they prioritize wealth preservation. This is the reason why they diversify their asset allocation to mitigate risk and sustain wealth over time.
Professional Services That Reduce Costly Mistakes
The top 10% of households rarely try to do everything themselves, especially when mistakes can be expensive. Taxes, estate planning and long-term financial planning are areas where they pay for expertise early and often.
"High-income households tend not to skimp on professional services," said Salihi. "Whereas a regular household might simply file their taxes every spring, a top 10% household diligently plans their taxes on a year-round basis, meaning they time their income and invest in a network of professional support."
Most of them have accountants, financial planners, and attorneys. While these services can be expensive, they help the rich save thousands of dollars and more by reducing costly mistakes.
Travel and Experiences
Travel ranks as the second-highest monthly expense among affluent households, according to Forbes Research. And the majority of these families prioritize memorable travel experiences over material purchases. The primary motivations for travel are disconnecting and relaxing, family vacations and exploring and learning about new cultures.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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