7 Frugal Habits to Keep Even When You're Rich

A senior woman holds a handful of cash while doing math on her phone's calculator.

You've finally skimped and saved your way to financial security. Now it's time to enjoy your wealth by splurging on all of those luxuries you denied yourself in the past.

While you've earned the right to treat yourself, it's just as important now to avoid wasteful spending as it was before (albeit for different reasons). Being intentional about your money will ensure that every dollar is spent on something that adds real value to your life.

Some frugal habits are never worth it. But others are so worthwhile that you should keep them even when you've achieved the financial security and freedom you've been working so hard for. Here are the smart frugal habits that are worth keeping no matter how rich you are.

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1. Repairing instead of replacing your things

When money is tight, you might try to get that faulty appliance or car fixed out of necessity. As your income grows, though, it's tempting to just skip the hassle of either fixing it yourself or finding a reliable repair person for the job. After all, if you can afford to buy new, why not go for the upgrade?

But repairing things that can be repaired is both better for the environment and better for your long term financial health. The rich stay rich because they don't waste money on things that they don't have to. So, resist that temptation to buy new right away. At the very least, get a quote or two on how much it would cost to repair before you decide.

2. Buying the cheaper version when it makes sense

If you've got no complaints about the generic ibuprofen or store brand pasta you were buying to keep your monthly budget under control, stick with them. There's no reason to pay more for name brands or fancier versions just because you have the money to do so.

While the extra dollar here and there might not derail your finances, that's money that could be parked in high-yield savings accounts or investment portfolios. Even if you don't save or invest every penny, that's cash that could be better spent splurging on things that are worth the premium to you.

3. Avoiding lifestyle creep

Man picking up packages delivered to his door.

You don't need a Maserati just because you have Maserati money now. If you're not a car enthusiast, there's no reason to ever buy a luxury car. Stick with a quality option that gets you where you need to go.

The same logic applies to everything you spend money on, but especially ones that are an ongoing expense, like your house and monthly bills. It's fine to splurge on the things you care about now that you've got more room in your budget. But it's important to be intentional about those splurges.

Here are some other examples of ways to avoid that lifestyle creep that can happen as your net worth increases:

Don't buy more house than you need, even if you can afford it. If you're looking to upsize because your current home is just too cramped, think carefully about how much extra space you need and how you would use it. Do you actually need more square footage or do you maybe just need more storage to declutter the space you have? Do you really need a separate guest room and home office or can those be combined into one room? Remember that a bigger house also means more maintenance and more cleaning. Even if money is no object, the time and energy you'd need to put into the home still are.
Don't upgrade your phone every year if you wouldn't have before. The same applies to your other gadgets and tools. Doing so might not be a budget-killer anymore, but it's still wasteful and mostly unnecessary. If you're still doing fine with the tech you have, spend that upgrade money on something that would actually bring you joy.
Don't accumulate subscriptions just because "it's only $10 per month." Again, these little monthly expenses might not drive you to bankruptcy, but it's good to maintain a mindset of avoiding waste. They call it lifestyle creep because it has a way of creeping up on you. Being vigilant, even about little things like this, can help you stay sharp and ensure every dollar is still being spent with intention.

4. Knowing where every dollar is going

Budgeting isn't just for people who need to make a limited income stretch as far as possible. It's the foundation of any financial plan, regardless of how much money you're working with each month.

Keeping track of where your money is going and assigning a job to each dollar coming in will help you cut waste out of your monthly budget and be more intentional with how you spend. That way, your wealth can actually bring you the joy and sense of security that you worked so hard for.

Of course, as your wealth grows, your definition of waste may change. Where eating out multiple times each week may have seemed wasteful when money was tight, it could be the best way to enjoy your wealth if you're a foodie that loves trying out new restaurants.

Tracking your spending doesn't have to be about spending less on nonessentials. Instead, it's about spending on the nonessentials that you actually want to spend on while avoiding needless drains on your wealth.

5. Increasing your savings in step with your spending

As your income and cost of living increase, remember to readjust your emergency fund, too.

The rule of thumb is to keep three to six months' worth of expenses saved. If the last time you calculated that number was before your promotion or raise, it's time to reevaluate and increase your target amount.

You should also make sure to stash that emergency fund in a high-yield savings account. Interest rates might not be as enticing as they were a couple of years ago, but even the rich won't turn their nose up at earning a little extra on cash that's just sitting there anyway. Every dollar you have should still be working for you.

To see if your emergency fund is generating the best yields possible, compare your current rates to other high-yield offers with our savings tool, powered by Bankrate:

6. Turning off the lights and other energy efficient habits around the home

Some of those frugal habits that your family might find annoying like watching the thermostat like a hawk and timing your showers are still good practice even when you can foot the higher utility bills. While you may be able to relax your standards a bit now, there's no reason to waste water or electricity if you don't have to.

This is just as much about being mindful of your spending as it is about being eco-friendly. The less resources you use, the less strain you put on public water and energy sources.

With that said, now that you have a little more cash to spare, it might be the right time to look into those bigger energy efficiency upgrades like switching to solar or having a home energy audit done and making all the recommended fixes. That way, you're conserving resources without having to be on guard any time someone in the house touches the thermostat or turns on a light.

7. Taking advantage of sales (the smart way)

There's no law that says a good BOGO deal is only for the people who actually need the savings. If your favorite ice cream or preferred laundry detergent is on sale, stock up. As always, the rule of thumb is that it's only a deal if it's something you would have bought anyway. And you shouldn't stock up beyond what you can use before the expiration date.

But, even when you're rich, you should still be keeping an eye out for sales like this. You might have a fully-funded retirement and a healthy emergency fund, but every little bit you trim from your everyday spending just gives you that much more wiggle room in your budget to weather an emergency or surprise expense in the future.

Smart spending habits transcend tax brackets

As your net worth grows, it's nice to be able to relax a bit and know that you can afford the lifestyle you've always dreamed about. But, just because you don't have to be frugal out of necessity doesn't mean you shouldn't care about wasteful spending.

By maintaining frugal habits like the ones above even when you don't technically need to, you can ensure that the wealth you've built up is actually going toward the things you care about and that lifestyle creep won't wipe out your assets faster than you anticipated.

Rachael Green is a personal finance eCommerce writer specializing in insurance, travel, and credit cards. Before joining Kiplinger in 2025, she wrote blogs and whitepapers for financial advisors and reported on everything from the latest business news and investing trends to the best shopping deals. Her bylines have appeared in Benzinga, CBS News, Travel + Leisure, Bustle, and numerous other publications. A former digital nomad, Rachael lived in Lund, Vienna, and New York before settling down in Atlanta. She’s eager to share her tips for finding the best travel deals and navigating the logistics of managing money while living abroad. When she’s not researching the latest insurance trends or sharing the best credit card reward hacks, Rachael can be found traveling or working in her garden.