Cindy Lamothe
·4 min read
It’s fun to think about all the many ways the rich spend their money. We’ll generally picture lavish purchases like fancy clothes and other items — or whatever we’ve seen in films about millionaires. But experts say it goes way beyond what we tend to imagine.
Read More: 8 Things the Rich Spend Money on That Poor and Middle Class People Don’t
See: How To Get Cash Back on Your Everyday Purchases
From luxury cars to luxury vacations, private jets and even private islands — there seems to be no limit to how much money the wealthy are willing to spend on extravagance, said Paige Robinson, real estate investor and owner of House Buyers. “I can say that the wealthy and affluent often spend money on over-the-top, expensive items that most of us can only dream of.”
“In fact, some of the most expensive items the wealthy spend their money on include private yachts, art collections, exclusive celebrity experiences and top-of-the-line home electronics,” she explained. “No matter what it is, if it’s expensive and luxurious, the wealthy will find a way to buy it.”
Read below for some of the most common over-the-top expenses of the super rich.
Private Jets and Aviation
“Owning a private jet is the epitome of luxury travel for the affluent,” said Alec Kellzi, CPA at File Smart Tax. Beyond the convenience of avoiding commercial airports, he said private jets offer the ultra rich personalized services, spacious interiors and the ability to travel on one’s schedule. “Some ultra-wealthy individuals even go further by customizing their jets with high-end materials and amenities.”
Find Out: 7 Things the Middle Class Spends Money on That Hurts Their Chances of Being Rich
High-End Fashion and Couture
Experts note that fashion is a way for the super-rich to showcase their wealth and style. They can spend thousands or even millions of dollars on designer clothing, accessories and jewelry. According to Kellzi, the rich indulge in exclusive, designer fashion brands and couture pieces, often tailor-made to fit their preferences.
From bespoke suits to one-of-a-kind dresses, these high-end fashion items not only signify status but also serve as wearable works of art. “Luxury brands and renowned designers cater to this elite clientele, creating limited-edition pieces with exorbitant price tags,” Kellzi said.
Fine Wine and Rare Spirits
“Collecting and investing in rare and vintage wines and spirits is a passion for many affluent individuals,” Kellzi highlighted, noting that private cellars stocked with prized bottles from renowned vineyards or limited-edition distilleries become a mark of sophistication and connoisseurship. “Wine auctions and exclusive tastings offer opportunities to further expand these prestigious collections.”
Fine Dining Experiences
Gourmet dining is an extravagant affair for the wealthy, said Kellzi, as they indulge in exclusive culinary experiences. This includes hiring renowned chefs for private dinners, dining around the world and organizing elaborate gastronomic events. “The pursuit of unique and exquisite tastes adds a sensory dimension to their extravagant lifestyles,” he added.
Space Tourism Ventures
Experts note that with the rise of space tourism, the affluent are now venturing beyond our planet. Private space travel involves booking seats on commercial space flights or even funding their space exploration ventures. “The cost of such endeavors is astronomical,” said Kellzi, “reflecting not only the technological challenges but also the exclusivity of being among the few to experience the vastness of space firsthand.”
According to Anton Radchenko, attorney and founder of AirAdvisor, experiences are one of the best things you can spend on, and the super wealthy take full advantage of this. “While some people are collecting miles to save on trips overseas, the ultra-rich leave the planet,” he said. “Virgin Galactic opened up tickets to space for the public for $450,000 apiece. With this, you can witness a breathtaking view of the Earth.”
High-End Watches and Jewelry
Beyond being functional accessories, luxury watches and jewelry serve as status symbols for the rich. “Limited-edition timepieces from prestigious brands and custom-designed jewelry featuring rare gemstones or intricate craftsmanship are coveted by collectors,” Kellzi noted. “These items not only adorn but also appreciate over time.”
Overspending on Household Employees
Delegating domestic chores is a common dream of affluence, said Shanal Aggarwal, tech expert at TechAhead, but he added that employing assistance is a big financial mistake.
“A cleaning crew can save a lot of money compared to hiring full-time maids,” he explained. “Personal chefs cost a lot of money — an hourly rate of $50 to $75 plus consumables. A full-time chef can cost between $100,000 and $150,000 per year, which is more expensive than buying takeout or cooking.” He said that even if having a staffed home is an appealing dream, careful consideration of the costs shows that it’s just one way the wealthy may waste money.
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This article originally appeared on GOBankingRates.com: 7 Most Common Over-the-Top Expenses of the Super Rich
