Millionaires often live financial lives we couldn’t comprehend. They have the money to burn to buy things we can only hope to look at while they’re driving past us on the freeway. It’s easy to be jealous of that kind of buying power, but it’s also important to learn from their mistakes. Many of their purchases we covet really are unnecessary and have no real value other than, “just because I could buy it.” But should they buy it?
Yes, even the rich and famous are capable of making financial mistakes, many of which they might regret themselves. Let’s take a look at several of those mistakes and put it into context.
1) Buying the Mansion
You might be asking yourself how buying a mansion is a mistake. We all want that dream home in a nice neighborhood, but more often than not, the bigger the house, the larger the regret. Many people get to a certain age when the kids move out and have all this space they don’t need anymore. For the rich, it’s the same.
Why buy a 20-room mansion? Then you have to find a way to keep it clean, mow the massive lawn, and the vast majority of the space goes unused. It’s simply impractical. If it’s a status symbol for you, it really doesn’t mean much in the grand scheme of things. Too many people want the best of the best but don’t consider the amount of extra money and work they have to put into it.
2) Yachts and Boats
Unless you live on the ocean or a lake, buying a boat is a wasted purchase. Especially if you’re a millionaire. You get to take a quick vacation, but most of the year, the yacht is put up in storage. You’re literally burning dollar bills to keep the thing in storage for most of the year. Then there’s upkeep and so much more.
If you really want to go on a fishing trip, you can rent a boat or go on a fishing tour. You don’t need to waste money on a boat that’s going to sit in storage and barely be used. That’s money that could be used elsewhere. Making better financial decisions will leave you better off in the long run.
3) Airplanes
If you’re rich enough, you might buy a plane or two. Again, this is a frivolous purchase that has no real value. You just want to get from one point to another. Instead of spending millions to buy a plane, you can charter your own flights or just ride in first class. You’ll save a lot more money that way.
Really, the big point here is that our desires can get us into financial trouble. We want the extra space and the freedom to buy whatever we want, but with those things comes more responsibility. It means money is being drained from your bank account on things you barely used just so you can say you own it.
