 Reach people have peculiar spending habits. They do not buy things the way everyone else buys or sell things the same way. They have mastered the art of maximizing profit in every situation. In addition, they avoid frivolous expenses that do not add value to them. This can mean working with tax specialists and financial advisors sometimes. They eventually end up with more money though because they are proactive in checking unplanned expenditure. In this video, I am going to share with you 9 expenses every rich person avoids. Reach people prefer to pay cash for their homes than take a mart gauge. A mart gauge can cage them in a job in order to enable the bank to keep collecting their principal and interest from their income. This can generally restrict freedom and of course the amount of money one can earn. Paying for the principal and interest which may end up ties the value of the property over the space of up to 5 years is an experience a rich person will avoid at all cost. The house is not an asset. It is a personal dwelling home which will depreciate with time and require repress and regular maintenance. Rich people prefer investing in assets that generate residual income and accumulate same over a period of time so that they can pay upfront for their family homes, cars and the likes. Rich people seldom take mart gauges if they can help it. A mart gauge debt is really not a small debt. It takes a long time to pay off and can keep you earning less than your initial net salary. This is really not a good idea if you have just one stream of income. Unless the house is used for business and generate some income that will be used to have set the mart gauge. Do you splurge from time to time or is it a habit? According to the Guardian, in the US it is estimated that impulsive buying generates around 4 billion dollars in sales every year. Impulsive buying is also linked to stress and a strong feeling of loneliness which people know that their ability to make smart decisions is intrinsically linked with their mental health. They associate with motivated and driven people and talk about their fears. They seldom lonely. They therefore do not make unplanned expenses. They operate a budget and have clearly defined goals. Those goals are similar to a guiding compass. People who have financial targets are not likely to spend as much as people who do not. Impulsive buying can put you into a lot of debt. Imagine having a box of luxury chocolates and not having enough money to pay rent. Do you think your landlord would give you some time off? Expensive college tuition debt. College can be pretty expensive. Rich people do not want huge debts on their necks. After college, if you took a student loan, you will be under a lot of pressure to get a job and when you do get one, you will spend many years earning to repay the debt. You will feel trapped at work sometimes and have limited options to live a job because you just have to have income that can keep servicing your loans. Rich people know that it will not be pleasant. They sometimes push college and work and save up and then apply for a scholarship. That way, whatever the scholarship doesn't sponsor, they can take care of it from their savings. School really will not teach you how to make and manage your finances. The earlier you start reading useful materials, the better. You need to start making better financial decisions. Going to Princeton, Harvard or Stanford will not guarantee you success in life. They are a bust, but nothing more. What you make of your life is entirely up to you. Attending the most expensive college with the accompanying debt that comes with it may not be the smartest decision. If you have no plans of how to repay the loan and maximize your college degree. Rich people study a lot to understand the tax systems and how they can benefit from tax holiday. They know that taxes are expenses you generally cannot and should not avoid. Doing this is very unlawful. What the rich people do, however, is to take advantage of financial arrangements that help them pay less taxes. If they run an enterprise, they can donate to charity instead of paying all the taxable profits of tax. That way, they are contributing to society and increasing the goodwill of their business. They seek out the most tax-efficient ways of doing business and in so doing, end up paying less tax than most people. Rich people know no one plans for cancer, COVID-19 or any other disease, really. They therefore plan a lot to cover such situations by ensuring their health completely. A rich person knows he may not enjoy his life insurance if he never gets ill, but unless when he dies, his children can benefit a fortune. Poor people think insurance is a waste of time and attracts bad luck until they are involved in a car accident and can cover their hospital bills. Health care bills can cost quite a lot and unfortunately, government assistance is quite limited. Government insurance will seldom cover serious operations and this can leave a lot of poor people hanging. Ensure your health so that you don't feel stranded. It hurts to pay premium monthly, but it's fun to tell your doctor with confidence that you can take care of your bills because you are insured. Subscription Expenses Rich people avoid subscriptions like a plague. Sometimes, you can subscribe to a platform and completely forget to unsubscribe, but the platform will keep debiting you monthly. Sometimes it's $5, so you feel it is nothing, but it accumulates over time. $5 in two years is $120. A unit of share of some big companies may even be less than this. Rich people live on a budget, so they know where their money is going. They do not make unplanned expenditure, and subscription they don't use taking their money is very unplanned. They avoid subscriptions a lot. They may subscribe for some services, but when they do, they track it and automatically end them once they stop using them. Overpriced accessories and clothing Does Gucci look good on you? I bet it looks good on everyone. Luxury clothing are great. They offer you comfort and a classy look. They also allow you associate with a strong brand that people recognize to be of quality and prestige. But can you really afford them at the moment? Being able to buy one and then skip meals for a month to make up really doesn't qualify as being able to afford it. If you can't afford them without distressing yourself or borrowing, maybe now is not really the time for it. Rich people only buy luxuries from their streams of income. They spend most of their money investing and upgrading themselves that generally don't buy luxuries. According to the Washington Times, Bill Gates admits wearing a wristwatch worth $10. Rich people don't need to buy a luxury brand to prove their reach or affluent. It's all people who need that validation. Number 8. Lifestyle Expenses Expensive houses, mills, and transport services are some of the things rich people try to avoid. They focus on assets and not liabilities. Assets have the capacity to give them some returns. Expensive cars and houses can do that. It takes money to maintain a car. Why get an expensive car if it will not make you any money? Does an expensive car allow you to break the speed limits and maybe gets you to the destination faster? What exactly is the advantage? A house, whether moderate or expensive, serves the same purpose. A more expensive house can neither offer you more peace nor more resting time. Again, what exactly is the advantage? Rich people make smart financial decisions. They have less regrets with their spending decisions and are always strategizing on the most profitable way to use their money. They maximize every single dollar. How about you? Number 9. Credit Card Expenses Credit cards are the solace of the poor. It gives them the right to buy the future and sell today. So many people are in a lot of debt because of credit cards. They always realize that they did not even need all the stuff they have bought when they eventually take a look at their debts. If you want to be rich, take charge of your finances. Use a debit card. When you pay cash for things, you are less likely to be in a lot of debt than someone who can literally buy a Tesla on credit. Having a capacity to have a lot of things and worry about paying later can lead you to impulsive spending behavior.