Have you ever wondered how millionaires spend their money and live their daily lives? Do they waltz into the fanciest restaurants with gold-plated cutlery and indulge in multi-course meals from Michelin-starred chefs? You may be surprised to find out that the truth is quite different from what you might expect. Recently, The National Study of Millionaires by Ramsey Solutions revealed that millionaires do indeed eat out, but their monthly expenditure on restaurants is far less than you'd think.
Millionaires are careful with their spending
It may be hard for some to believe, but even millionaires are very careful with their spending habits. In fact, 94% of millionaires stick to a budget and live on less than they make. More importantly, almost three-quarters of those millionaires have never carried a credit card balance in their lives! It just goes to show that financial responsibility is key, no matter how much money you have in the bank.
The study found that millionaires spend $200 or less each month at restaurants. It's a small amount of money when you think about it. You might spend that much in a single week! So, how do they manage to keep their restaurant spending so low? One key factor is that millionaires seem motivated to save money. In fact, the same study found that 93% of them regularly use coupons when they go shopping.
Millionaires tend to be more practical and money-savvy than we might think, with the majority following a budget and taking advantage of deals and coupons. It's important to understand that these simple habits can help anyone improve their finances and build wealth over time.
Millionaires are made, not born
Becoming a millionaire doesn't happen overnight. According to the survey, only 5% of the millionaires surveyed reached that feat in less than 10 years. It took most of them 28 years to become a millionaire, with 49 as the average age they reached the milestone.
The survey found that the key to financial success and becoming a millionaire was through disciplined investing. Eight out of 10 invested in their workplace 401(k), 403(b), or equivalent company retirement plan. Millionaires took advantage of the free matching from their employers and the tax benefits. In addition to their company investment plans, three out of four also invested in their brokerage accounts, Roth IRA, or a traditional IRA.
"Three out of four millionaires (75%) said that regular, consistent investing over a long period of time is the reason for their success," the survey stated. "So, the story about the young computer genius who developed an app that earned millions overnight is the exception, not the rule."
Even if you strike it rich one day, it's important to remember to manage your personal finances wisely. You may be as surprised to learn that the millionaires in the study are not interested in flaunting their wealth with expensive dining experiences. Not only did they focus on saving and investing, but more importantly, they focused on their spending habits. So take a page out of the millionaire handbook and start living within your means. You never know what small change in your daily routine could make a substantial impact on your financial future.
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FAQs
Millionaires are careful with their spending
How much does one person spend on restaurants per month? ›
In fact, Americans spent 20% more eating out in 2022 than they did in 2021. On average, people say they eat out three times a month and order delivery between four to five times a month. But just because the average person spends $300 a month eating out, it doesn't mean you have to do the same.
What is a realistic budget for eating out? ›
What's a reasonable food budget? Many financial advisors and gurus recommend spending no more than 10%-15% of take-home pay on food, a figure that includes restaurant dining and takeout.
How many millionaires use coupons? ›
Survey results show that an incredible 93% of millionaires use coupons when shopping, and they tend to spend $200 per month or less on eating out at restaurants.
How much does the average American spend eating out? ›
Two in three Americans (67%) feel guilty when dining out, according to a new poll.
How much does 1 person spend on food per month? ›
Average grocery cost per month for 1 person in a household
Considering the Thrifty and Liberal plan averages, the monthly grocery cost for an adult male falls between $275.63 and $434.33, while the average for an adult female ranges from $238.46 to $384.93.
What is the 50 30 20 rule? ›
The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.
Is it cheaper to eat out or cook for one person? ›
It costs nearly 3 times more to eat a meal in a restaurant than to make it at home, and some states will see even higher costs with eating out. Over time, the costs can eventually equate to months' worth of rent, car payments, or retirement savings.
How much do rich people spend on eating out? ›
Recent research revealed that millionaires spend surprisingly little on eating out, with most splurging only $200 or less per month on restaurant meals. Three out of four millionaires (75%) stated that regular, consistent investing over a long period of time was the reason for their success.
How much is an average meal in the USA? ›
Nearly half of Americans (42%) spend between $11 and $20 per person per meal, and 24% spend between $21 and $30. Additionally, 8% spend $10 or less, 11% spend between $31 and $40, 7% spend between $41 and $50, and 8% spend more than $50 per person per meal on average.
By those standards, the five jobs with the most millionaires are engineer, accountant, teacher, people in management, and lawyer. Doctor is sixth. They make a lot of money, but also spend a lot. The poll found doctors aren't great in general at managing their money.
Do 90% of millionaires make over 100k a year? ›
Choose the right career
And one crucial detail to note: Millionaire status doesn't equal a sky-high salary. “Only 31% averaged $100,000 a year over the course of their career,” the study found, “and one-third never made six figures in any single working year of their career.”
What do most rich people do for a living? ›
I spent five years studying and interviewing 233 millionaires to learn about their habits and the way they think. Work was a big topic: 51% were entrepreneurs, 28% had traditional 9-to-5 jobs, and 18% were senior-level executives at large companies.
Is it better to eat out or cook at home? ›
Some studies suggest that people who cook more often, rather than get take-out, have an overall healthier diet. These studies also show that restaurant meals typically contain higher amounts of sodium, saturated fat, total fat, and overall calories than home-cooked meals.
Where do Americans eat most of their meals? ›
On average, Americans are deciding to order takeout or delivery 4.5 times a month, compared to eating at a restaurant an average of 3 times a month. What motivates people to dine at restaurants rather than their own kitchens?
How much does one person spend on fast food a month? ›
It goes without saying, the popularity of fast food in the United States continues to grow, with fast-food restaurants in the U.S. earning an incredible $278.6 billion in revenue in 2021. In 2023, people spent, on average, $148 every month on fast food.
How much does one person spend on clothes per month? ›
From Credit Donkey: The average person spends around $161 per month on clothes – women spend nearly 76% more than men do on clothing in a year.
How much should you spend on going out per month? ›
According to Corley, the magic number is 10 percent of your monthly net pay, or what you take home after taxes and other deductions. That under-ten-percent figure covers going out to restaurants, bars and the movies.
