During uncertain economic times, even the upper class starts to trim its budget. When times get tight, everyday luxuries are now on the chopping block.
Read More: 4 Moves To Make if You Can’t Pay All Your Bills this Month
Find Out: 7 Wealth-Building Shortcuts Proven To Add $1K to Your Wallet This Month
Here’s where experts say the wealthy have done the most cutting in their budget this year.
Vacation Homes
Most likely, wealthy people are not on the hunt for a second home right now. They might even be considering selling their existing vacation homes.
“Among high interest rates, growing property taxes and the inconvenience of owning homes beyond borders, a lot of affluent families are declining second (or third) vacation homes,” said Keith L. Magness, attorney and CEO at Magness Law.
Discover Next: I’m a Financial Advisor: My Wealthiest Clients All Do These 3 Things
Smart Home Applications
Going inside the home now, some experts say that the once sought after “smart home,” isn’t as common. Many affluent homeowners are now seeking simplicity instead of technology, both for ease and to save money.
“As homes have become increasingly dependent on digital and automated systems, many people are experiencing fatigue from constant connectivity and unreliable technology,” said Daysi Hernandez, interior design assistant at Boudreaux Design Studio. “Managing countless apps and accounts for every device has turned convenience into frustration. To simplify their lives and avoid unnecessary costs, many homeowners are now ‘de-teching’ their spaces, transforming smart homes into calm, functional and timeless environments.”
New Furniture
Getting a new couch or rug just isn’t in the cars right now-even for the ultra-rich.
“Wealthy people are riding out economic uncertainty,” said Melanie Musson, a finance expert with Quote.com. “Instead of refurnishing their living rooms, they’re holding on to their cash.”
High Fashion
Though rich people are known to have expensive clothes, the shopping budget is on the decline. Instead, wealthy people are looking for good deals, just like the rest of us.
“With the economic uncertainty, even the wealthiest of shoppers are becoming more selective about their purchases,” Bobby Ghoshal, CEO of Dupe.com, said. “With so much up in the air, even the rich are deferring purchases of trend-driven luxury buys for options that are less expensive or staple pieces that will provide more return for their dollar.”
Travel
Ghosal explained that jetsetting to Rome or cruising to the Bahamas might not be feasible, given the current economic climate.
“Though affluent consumers often lean into experiences,” he said, “the impact of inflation on travel has made them more cautious about spending on ultra-premium travel sprees some may deem as wasteful experiences.”
Collector Cars
Some individuals in the upper class used to spend their extra income on classic cars. Now, Musson observed, the trend of buying vehicles from yesteryear has gone down.
“They’re not as quick to build their collections right now,” she said. “The market is slow and they’re waiting for some hysteria to come back to the market.”
More From GOBankingRates
- Here's What the Average Social Security Payment Will Be in Winter 2025
- 5 Old Navy Items Smart Seniors Should Stock Up On for Winter
- How Middle-Class Earners Are Quietly Becoming Millionaires -- and How You Can, Too
- 6 Clever Ways to Pocket an Extra $1K This Month
This article originally appeared on GOBankingRates.com: 6 Luxury Goods Even the Wealthy Are Rethinking in 2025
