10 Frugal Habits of Millionaires That’ll Actually Make You Rich

Last Updated June 12, 2025 by Davina Kelly

When you hear the word millionaire, you probably think mansions, sports cars and designer handbags. But you might be surprised by the frugal habits of millionaires and how these simple practices help them maintain their wealth.

Thanks to celebrity culture and media hype, it’s easy to believe that rich people spend all their money on luxury items. But the truth is, most millionaires don’t live like that.

In this post, I’m going to share the best frugal habits of millionaires, the kind that real, self-made millionaires follow. 

These are practical, doable habits you can adopt to help you keep more money in your pocket, even if you don’t have millions…yet.

Key takeaways:

• Frugal habits aren’t about deprivation, they’re about being intentional with your money.
• Regularly auditing your spending helps you stay in control and make your money work for you.
• Use tools like a notes app to plan ahead and avoid impulse purchases.
• Prioritize experiences and long-term goals over flashy, short-term splurges.

10 Top Frugal Habits of Millionaires:

1. They Buy Enough House

Contrary to popular belief, most millionaires aren’t living in 10-bedroom Beverly Hills palaces with marble staircases and indoor bowling alleys.

They’re living in normal neighbourhoods, in homes that are practical and affordable. 

Studies, including those cited in The Millionaire Next Door, reveal that over half of U.S. millionaires live in homes with four bedrooms or less, and many live in three-bedroom homes.

That’s right, no over-the-top estates, just enough space to be happy without overextending financially. 

Because here’s the truth: a bigger house means bigger expenses.

It also means higher property taxes, more maintenance, more furniture, more utilities – the list goes on. 

Millionaires know that going just big enough keeps their monthly expenses low and frees up cash for saving, investing and building wealth.

Takeaway: Forget the mansion. Buy a home you can afford, maintain easily, and that fits your actual needs, not your ego. 

2. They Drive Cars That Get the Job Done 

Millionaires aren’t driving Porches’ or dropping cash on the latest Tesla model just to show off.

In reality, most of them drive reliable, fuel-efficient cars and a good chunk buy older used cars.

According to research, Toyota is one of the most popular car brands among millionaires.

Not BMW. Not Mercedes. Toyota.

Why? Because it’s safe, it works, is reliable and doesn’t cost a fortune to maintain.

More than a third of millionaires buy used cars. 

They care less about getting attention for their purchases and more about saving money on depreciation and avoiding unnecessary debt. 

Takeaway: Your car is not your status symbol, it’s a tool. If it safely gets you from point A to point B, that’s enough. 

3. They Regularly Audit Their Spending

Subscriptions can silently drain your budget, and millionaires know it.

Whether it’s Netflix, Spotify, Disney+, gym memberships or random app renewals, those little monthly charges add up quickly.

One of the frugal habits of millionaires is they routinely go through their bank statement and cancel anything they’re not using.

Because what’s the point of working hard, saving money and budgeting only to waste it on forgotten charges?

It happens to the best of us — you sign up for a streaming platform to watch one show, forget to cancel, and suddenly you’re hit with a $50 charge the next month. Yikes!

Takeaway: Adopt these frugal habits and make it a habit to audit your expenses regularly.

Cancel subscriptions you’re not using. Think of it as plugging the leaks in your financial boat. 

Grab my FREE budget and expense tracker below and start auditing your expenses.

4. They Know Their Enough

This one’s deep.

Millionaires have figured out how to define what “enough” looks like in their lives, and they stick to it. 

They don’t constantly chase more clothes, more gadgets or more zeros in their bank account just because. 

They know that contentment is a superpower.

Let’s be honest: with money, there’s no natural limit. 

Unlike food (where your stomach literally says stop), with money, it’s easy to fall into the trap of always wanting more. 

But that leads to burnout, stress and lifestyle creep.

This is one of the best frugal habits of millionaires.

They have the discipline to say “I have enough” and they focus on what truly matters – freedom, security and joy. 

Takeaway: Learn to define your enough. Stop moving the goal post. Happiness isn’t found in always chasing more. 

5. They Test Big Purchases Before They Commit

Ever dream of buying a big house with a backyard pool or a luxury car with all the bells and whistles?

Smart millionaires don’t just make purchases based on emotion or aesthetics. They test drive their decisions, literally.

Before buying a home, they’ll rent a similar property for a year to see if they actually enjoy the extra space or if it just becomes a nightmare to maintain. 

Before buying a car, they might rent a model for a weekend to see if it fits their lifestyle.

This try before you buy mindset helps them avoid regret and wasted money

Takeaway: Don’t rush into big purchases. Test them out first. You might realise that what you thought you wanted isn’t all that great in reality. 

6. They Always Shop with a List

Millionaires don’t browse.

They don’t walk into the mall for toothpaste and leave with $200 worth of candles, throw pillows, and mugs.

They shop intentionally. That means they always have a list and they stick to it. 

Impulse shopping is emotional shopping.

It’s what companies want you to do, which is why everything is designed to trigger your FOMO or boredom. 

But millionaires sidestep that trap by planning ahead, listing what they need and sticking to their game plan.

I personally love using a notes app to keep a running list of groceries and anything else I need before I head to the shops. 

It keeps me focused and helps me pause and think before I add anything to my cart.

Takeaway: Don’t shop to feel better, shop with purpose. Make a list and stick to it like your wealth depends on it, (because it kind of does).

7. They Buy in Bulk

Buying in bulk is a classic frugal move, and millionaires love it. 

Places like Costco offer massive savings when you buy everyday essentials in larger quantities. Think toilet paper, hand soap, frozen fruit, and pantry staples. 

Not only does it save money, but it saves time too. 

But here’s the catch: millionaires don’t go overboard.

Sure, you can get a 7-pound jar of Biscoff…but should you?

Probably not. If you won’t use it before it expires or it encourages over consumption, you’re not really saving.

Takeaway: Buy in bulk to save on what you use consistently. But avoid the temptation to bulk buy just for the thrill or deal. 

8. They Negotiate Everything

We often think of negotiating as awkward or cheap. But here’s a secret: millionaires do it constantly.

In fact, 86% of millionaires say they always negotiate when buying a home or car and many do the same for services, furniture and even medical bills. 

They don’t see negotiations as being frugal, they see it as smart money management. 

No, they’re not haggling at Target lol but in situations where prices aren’t fixed, they speak up and save big.

I do this every time my internet contract is up, I call and ask for a better deal.

Nine times out of ten, I get a discount because companies would rather keep an existing customer than spend more to acquire a new one.

And no, you don’t need to be a master negotiator. I’m definitely not, but it still works!

Takeaway: You don’t get what you don’t ask for. Don’t be afraid to negotiate. It’s not rude, it’s strategic. 

9. They Don’t Confuse Luxury with Wealth

This is a good one. 

Most of the people driving luxury cars or carrying designer bags aren’t wealthy, in fact, they’re usually in debt and living paycheck to paycheck.

The research shows that 86% of luxury vehicles are bought by non-millionaires. 

Let that sink in.

Millionaires don’t need to prove anything to anyone.

They don’t care about appearances, they’re focused on building freedom, peace of mind and long-term financial security.

If they do spend on luxury, it’s usually after they’ve built a solid foundation and they’re spending from abundance, not obligation.

Takeaway: Don’t let social pressure push you into lifestyle creep. Luxury doesn’t mean wealth. Peace of mind does. 

10. They Value Time & Energy Over Stuff

At the end of the day, millionaires think differently.

They value time, freedom, energy and relationships more than things.

They’re not hoarding stuff, they’re curating their lives. 

Every dollar they save, every purchase they skip, every intentional decision they make – it all adds up to a life that feels rich in the right ways. 

They don’t chase wealth to show off. They build wealth to create options: to retire early, to travel, to give generously, to live without stress. 

I’m not a millionaire… yet, lol. But this is one mindset shift I’ve made recently.

Instead of splurging on the latest Louis Vuitton bag, I’d rather spend that money on experiences—like a holiday with friends or a really nice dinner. 

It feels way more fulfilling and those memories are priceless.

Takeaway: Think of money as a tool, not a trophy. Use it to design a life you love. 

Final Thoughts

Millionaires aren’t rich because they spend big. They’re rich because they spend smart. 

They live on less than they earn. They prioritise financial freedom over fleeting status symbols.

And most importantly, they build daily habits that support long-term wealth – habits you and I can start today.

So, whether you’re trying to save for a house, get out of debt, or just stop feeling broke between paydays, start small. 

Start with one of these habits. Then another. Before you know it, you’ll be making millionaire moves too.

Which frugal habit are you going to start with first? Let me know in the comments.

This post was all about the frugal habits of millionaires.

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