Why billionaires don't buy expensive clothes and what they do instead (2024)

FAQs

Why don't billionaires buy expensive things? ›

Instead of spending on frivolous items, billionaires often view their money as a means to invest in businesses, real estate, stocks, and other assets. While impulse buying can be a challenging habit to kick, it's possible to reprogram our mind to avoid this behavior.

"The idea is that if you're used to having money, you needn't show it off," says Mair. Fashion is a powerful communication tool, and one that even the super-rich aren't above using.

The fashion items are not made to last and generally poorly made, and it generates an enormous amount of textile waste. Investing in expensive clothing items that only last a season or two doesn't make sense in terms of long-term sustainability or personal finance.

High-End Fashion and Couture

They can spend thousands or even millions of dollars on designer clothing, accessories and jewelry.

Some wealthy individuals prefer not to be seen as show-offs and believe that flaunting expensive designer brands can create a negative perception of wealth. Others prioritize quality and comfort over flashy luxury items, valuing well-made clothing and accessories that enhance their everyday lives.

The 10 things that millionaires typically avoid spending their money on include credit card debt, lottery tickets, expensive cars, impulse purchases, late fees, designer clothes, groceries and household items, luxury housing, entertainment and leisure, and low-interest savings accounts.

Studies have confirmed that wearing luxury brand clothing increases the perceptions of a person's wealth and status and that these perceptions lead to all sorts of advantages.

It's no secret that the better items are made, the longer they're going to last. How many times have you purchased a garment because it was cheap and on sale, only to get a few wears out of it before it falls apart or loses its shape? Quality clothing, while more expensive, is inherently made better.

Synthetic fibers (e.g. Acrylic, Nylon, Spandex and Acetate) are cheaper than natural fibers (e.g. Cotton, Wool…) because they can be produced efficiently in large quantities from cheap raw materials. In general, Polyester is the cheapest fabric on the market, followed by cotton.

Look for clothing or accessories crafted from luxurious natural materials. Opt for simple yet classic designs with earth tones and neutrals like black, white, beige, and navy. Make your style exude sophistication and class. Make sure your clothes are always well-pressed and clean.

What clothes attract money? ›

Red emits an energy that is bright as well as powerful and is the best color to attract money. It symbolizes life and emits a huge amount of energy. According to Feng Shui, red is a versatile color. Hence, while using the red, you should be quite careful.

What brands do the ultra-wealthy wear? The ultra-wealthy often wear brands such as Zilli, Kiton, Stefano Ricci, Tom Ford, Brioni, and Cesare Attolini. Where do rich people shop? Ultra high-end brands often have exclusive boutiques and flagship stores around the world.

Subtle Status

Another reason for the wealthy to forgo the purchases of luxury vehicles is a “preference for subtlety and avoiding overt displays of wealth, which can attract unwanted attention or signal affluence in ways that some wealthy individuals are uncomfortable with,” Greiner said.

Some of the reasons why people buy luxury goods when they can't afford them include a sense of irrationality, the supposed quality, the impact they have on self-esteem, and a sense of accomplishment.

Wealthy people aren't afraid of borrowing. But they typically don't borrow money to live beyond their means or because they failed to save for emergencies or make a plan to cover expenses. Instead, rich people tend to use debt as a tool to help them build more wealth.

Key Takeaways. A billionaire has a net worth of at least one billion units in their native currency. Net worth is the value of a person's assets, minus the liabilities they owe. Billionaires can have a variety of assets, including cash and cash equivalents, real estate, and business and personal property.