millionaires

If you think frugality means clipping coupons and skipping lattes, you’re missing the point.

The wealthiest people I know are surprisingly frugal — but not in the ways you’d expect. Their version of frugal isn’t about depriving themselves and saving $5. It’s about spending money intentionally, getting max value, and making every dollar (and hour) work harder.

Here are nine frugal hacks I’ve picked up from millionaires that have completely changed how I manage my money.

1. Buy used, high-quality cars

Millionaires don’t upgrade their car every few years just because it’s “time.”

They buy long-lasting quality vehicles — often used or new with cash — and then they drive them into the ground. Not because they can’t afford to upgrade, but because they understand how brutal car depreciation is.

According to Carfax, the average vehicle drops to just 40% of its original value after five years. That means a $50,000 car could be worth only $20,000 by then.

Wealthy drivers avoid that loss. They buy after the steepest depreciation hit, then keep the car running for 15+ years and 200,000+ miles. That’s how they win.

2. Always negotiate — even if it feels uncomfortable

Here’s a trait most wealthy people share: they ask.

They ask for lower prices, better deals, waived fees, and higher pay. They negotiate medical bills, car insurance, credit card interest, and more.

It’s not about penny pinching or being stingy. It’s about advocating for yourself and your dollars.

One of my millionaire mentors told me, “If you don’t ask, the answer is always no.” That mindset alone can save you thousands.

3. Use travel credit cards to see the world for less

Millionaires love credit card rewards. They put all their spending on the right types of credit cards to earn points and miles towards discount (or free) travel.

Flights, hotels, rental cars, even airport lounge access… it’s all hackable with the right setup.

Some of the best travel cards offer large welcome offers, high earn rates on travel and dining, and flexible points you can use for nearly free trips.

4. Buy once, use forever

I used to think being frugal was just a nicer word for being “cheap.” But millionaires flipped that idea on its head for me.

They’ll happily spend more upfront for high-quality items to avoid constant replacements, repairs, and headaches down the line on cheaper items.

Cookware, furniture, clothing, tech, etc. Millionaires buy stuff that just lasts. Because cheap stuff that breaks isn’t actually cheap. It’s just delayed pain.

5. Turn homes and spaces into a money-making machines

Almost every millionaire I’ve met has a “hustle” story. And it usually starts with finding a way to make money from what they already own.

Real estate is a big one. That might mean renting out a basement, listing a guest room on Airbnb, or house-hacking a duplex.

Any time you can offset your housing costs, you’re freeing up more cash to invest elsewhere.

6. Delay big purchases — even if you can afford it

Here’s a frugal hack that’s wildly underrated: waiting.

Many wealthy folks give themselves a 30-day window before any major purchase. By the end of the month, they either forget about it or realize they didn’t need it in the first place.

Delayed gratification isn’t about never spending or enjoying your money. It’s about avoiding emotional purchases that don’t matter in the long run.

7. Track finances like a hawk

Millionaires know where every dollar goes. And they track their wealth regularly.

That includes income, expenses, net worth, investment performance, and even small leaks in their spending.

You can’t improve what you don’t measure. And millionaire-level frugality starts with knowing your numbers.

8. Maximize tax-advantaged accounts

Wealthy people are very tax conscious.

They know the power of contributing to tax-advantaged accounts like 401(k)s, traditional IRAs, and Roth IRAs. These accounts let your money grow more efficiently, keeping more in your pocket — all with help from the IRS.

Personally, I opened a Roth IRA nine years ago and began contributing the maximum each year. Continuing this, I’m on track to have $1 million in tax-free money around the time I turn 60.

Explore the best IRA accounts to grow your wealth tax-efficiently.

9. Value time savings

Millionaires value their time as much as their money.

They’ll gladly pay for services or tools that save hours of hassle, because time saved can be reinvested into higher-value activities.

This shows up in things like grocery delivery, tax prep services, or even paying a premium to fly nonstop vs. dealing with layovers.

Time is one of the most precious resources we all have. Spending it wisely can be the highest ROI of all.

The bottom line

When you study real millionaires (not the fake flashy people that look rich, but the regular-looking folks who secretly have massive investment accounts) you start to notice patterns.

They’ve mastered frugal hacks that don’t feel like sacrifice. Like spending intentionally, avoiding waste, and using their money (and time) with purpose.

Mimicking these habits has already boosted my finances in a big way — and it’s made my life simpler, too.

Ready to level up your savings strategy? Explore our top-rated investing accounts for building long-term wealth.

The creator of Blue Lock: Rivals thought kids on Roblox might like a soccer video game with an anime vibe. It sold a few months later for more than $3 million.

The 19-year-old, who asked that his name be withheld because he has never shared it publicly, made the game in just three months with the help of co-developers. It attracted more than 1 million simultaneous players following its release last year, he said, generating $5 million a month in purchases for Roblox Corp., the popular gaming platform.

Do Big Studios, an owner of other Roblox games that had helped develop Blue Lock: Rivals, bought the game in March, delivering a hefty payout to its teen owner.

Like YouTube, Roblox started two decades ago as an online stage for young creators. Video-game lovers could use the service’s tools to develop inexpensive, low-resolution entertainment. Now, as the company grows toward 100 million active daily users, contributors are finding there’s money to be had in selling the games they’ve created, with buyers prepared to pay seven or even eight figures.

“We’ve seen a real shift in Roblox’s ecosystem,” said David Taylor, senior consultant at the video-game-analytics firm Naavik. In June, seven of the 15 highest-earning games on Roblox had been acquired from their original owners, according to his research.

The shift has been spawned in part by policy changes at Roblox. A December update to the service lets players easily transfer game ownership. Previously, Roblox said such sales were against its terms of service and community guidelines. A company spokesperson added that Roblox isn’t currently participating in secondary-market transactions.

Do Big has been scooping up other titles, including Roblox’s biggest hit ever. In May, the company bought a stake in Grow a Garden, currently the most popular game on Roblox, for an undisclosed sum. The farming title broke records in late June, when it attracted over 21 million simultaneous players — more than Fortnite from Epic Games Inc. Another Roblox game company, Splitting Point, had taken it over the prior month from an anonymous teenage developer for an undisclosed sum.

Representatives of Do Big didn’t respond to a request for comment.

In February, an anonymous developer sold Roblox’s then-most popular game Brookhaven RP to Voldex Entertainment Ltd. Voldex’s founder and chief executive officer, Alex Singer, said the deal, with financing arranged by Raine Group and Shamrock Capital, was “bigger” than the reported sum that Embracer Group AB paid for Roblox’s Welcome to Bloxburg in 2022, though he declined to be more specific.

“When there are more dollars paid out to creators, it attracts more people,” said Singer, 24.

A report at the time put the Welcome to Bloxburg sale price at $100 million, though officials at Embracer said it was less.

According to Roblox, the company’s top 10 developers earned $36 million each in the 12 months through March. The San Mateo, California-based company may pay out more than $1 billion in total to creators for the first time this year. In 2023, CEO Dave Baszucki predicted that by 2028 a Roblox developer will be valued at $1 billion.

Over a dozen companies buy, develop and sometimes flip Roblox games. Much of the activity is conducted over the chat app Discord, according to Connor Richards, a lawyer with Odin Law & Media who’s been involved in a dozen deals. He’s seen minors earn a few hundred thousand dollars from these deals.

Another technology lawyer, Adam Starr, said he’s facilitated about 20 Roblox deals over the last year and is receiving more inquiries than ever. The developers often opt to remain anonymous.

Voldex’s first major acquisitions, Driving Empire and Ultimate Football, cost the company seven figures, Singer said. A subsequent agreement with the NFL allowing the company to rename the property NFL Universe Football helped grow its audience.

“We’ve been able to sustain our communities and games and grow them while keeping players happy,” Singer said. “That’s really important.” He’ll assign a team of programmers to analyze and improve a game, often alongside the original creator.

Roblox games rise and fall with kids’ whims. A paintball simulator might die off after another creator publishes a Roblox clone of Ubisoft Entertainment SA’s Rainbow 6 Siege. Only the rare game remains popular for months or years. Creators who know this will sometimes sell their games at a price equal to just one or two months’ revenue. Others go for 12 months’ worth of sales, according to Naavik’s Taylor.

Independent game developers also trade their art or programming work for a share of game ownership.

“Roblox is very capitalist,” Voldex’s Singer said. The company “wants creators to be economically successful.”

D’Anastasio writes for Bloomberg.