4 things rich people spend way too much money on, according to a financial advisor who works with millionaires

The offers and details on this page may have updated or changed since the time of publication. See our article on Business Insider for current information.

Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate products and services to help you make smart decisions with your money.

• Millionaires may make plenty of money, but they don't always do the best job of keeping it.
• Financial advisor Mark Scribner says rich people waste money on luxury cars and household staff.
• Millionaires also spend too much money treating their friends and family to expensive dinners.

Are rich people really that different from the rest of us?

Millionaires may not be impulse-buying the same $25 cat door you got from Amazon, but they still share the same spending habits as everyone else. Some millionaires spend money to impress their friends and family, while others keep a low profile and a diversified investment portfolio — just like the rest of us. 

In 2021, Business Insider spoke to Mark Scribner, financial advisor to millionaires and managing director at Boston-based wealth management firm Carson Wealth. Scribner shares four things rich people spend too much money on and what we can learn from their mistakes.

1. Boats or yachts

Have you ever maxed out your credit card on a pair of designer jeans you'll only wear once just to impress your friends? Rich people do the same thing — only with boats and yachts, according to Scribner.

"Did you know that BOAT is an acronym for Break Out Another Thousand dollars?" Scribner jokes. Yachts are notoriously expensive to maintain, and they require a full-time crew. The majority of rich people splurge on these big-ticket items to impress others, says Scribner. "Some people never actually step foot" on their boat, he continues. "What a waste of money."

2. A fleet of luxury vehicles

In the same vein as boats and yachts, rich people tend to buy too many luxury vehicles that they don't actually get to use. These vehicles just sit in the garage for months until it's time to show them off to impress friends, family, and colleagues. 

Scribner says, "The vast majority of vehicles lose value as soon as you drive it off a lot. It's better to purchase or lease one luxury vehicle at a time and enjoy it. When the thrill is gone, simply move on to another luxury vehicle." 

3. Household staff, including a personal chef

Everyone has a fleeting fantasy of getting rich and never lifting a finger for housework again. But Scribner says that household staff is one of the biggest ways that rich people waste their hard-earned money.

"You can save a significant amount of money by hiring a cleaning crew to clean up on a daily basis," he suggests, instead of hiring full-time housekeepers. Personal chefs cost anywhere from $50 to $75 per hour on average, plus the cost of groceries, says Scribner. He adds that a full-time chef could cost $100,000 to $150,000 a year on average, which is significantly higher than the cost of cooking your own meals or getting takeout.

4. Picking up the tab at dinner

Ever feel pressured to pick up the dinner or drink tab when you're out with your friends? Millionaires feel that way, too.

Scribner says that treating family to dinner once in a while is fine, "but it's a huge waste of money to pay for your friends whenever you dine out together or visit a nightclub." This act of generosity can add up rather quickly, especially when you factor in bottle service, expensive Champagnes, and fancy restaurants.

This millionaire mistake teaches us how to set firm boundaries, regardless of income size. You don't always have to pick up the dinner bill, even if others expect you to.

This article was originally published in November 2021.