How Millionaires Spend their Disposable Income
On what are Millionaires most likely to spend their entertainment dollars?
A new Spectrem wealth level study of households with a net worth between $1 million and $5 million (not including primary residence) finds strong support for the arts. Almost eight-in-ten respondents indicated that they spend up to $10,000 annually on symphonies and other artistic endeavors. Nearly seven-in-ten (67 percent) spend that amount on sporting events.
Almost half (46 percent) devote their discretionary spending on club memberships, while 58 percent spend up to $10,000 annually on vacations or leisure travel. Just over one-third spends between $10,000 and $24.9K on their getaways.
On what are Millionaires most likely not spending their money? For a wealth segment that prides itself most on their work ethic and smart investing, it is not surprising that almost three-fourths (72 percent) said they spend nothing on gambling. Nearly seven-in-ten (67 percent) said they do not spend anything on collectibles. And boats? That status symbol seems to have lost some of its buoyancy among these Millionaires. Just over nine-in-ten respondents (93 percent) said they spend nothing on boats.
A survey of annual household expenditures finds that these Millionaires have a more philanthropic than advocacy bent. While 79 percent of respondents indicated they spend up to $10,000 annually on charitable contributions, just 36 percent said they spend similarly on political contributions. Nearly two-thirds (64 percent) said they make no political contributions.
Clothing is a major Millionaire expenditure, with 94 percent of respondents reporting they spend up to $10,000 on apparel. Just under two-thirds (63 percent) spend this amount on jewelry. Less than 10 percent spend any higher.
Six-in-ten spend up to $10,000 on home improvement, while nearly one-fourth (24 percent) spend between $10,000 and $24.9K. Nearly six-in-ten (57 percent) said they spend up to $10,000 annually on their household staff.