When you’re super rich, you can afford to buy almost anything you want. And some certainly do.
But not all wealthy people live a flashy lifestyle, said Winnie Sun, founding partner of Sun Group Wealth Partners in Irvine, Calif. In fact, Sun said many of her high net worth clients — including celebrities — are very careful about spending.
So, maybe most of the rich aren’t blowing their money. But there are certain things the top 1 percent spend money on that are out of reach of the bottom 99 percent. See some of the items only the rich can afford, and learn how you might be able to afford the same things on a smaller budget.
1. A Family Foundation
The wealthy don’t just donate to charities — they have their own charities. For example, one of the largest private foundations is the Bill & Melinda Gates Foundation, which was created by billionaire Microsoft founder Bill Gates and his wife and has a $39.6 billion endowment.
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“If you have a lot of wealth, you feel like the next step is to leave a footprint in this world,” said Sun. “For the uber-wealthy, it’s important to leave a legacy.” That’s why so many of her wealthy clients have created family foundations.
You don’t have to be rich, though, to give to others. You can contribute any amount you can afford to the charity of your choice, donate items you no longer need to organizations such as Goodwill, or volunteer your time.
And if you itemize on your federal tax return, you can claim a deduction for your gifts of cash or property.
“Giving to those less fortunate has little to do with how much money you have,” said Sun. “But, of course, those with a lot of money can give more.”
2. Several Vacation Homes
You don’t have to be super rich to buy a vacation home. In fact, vacation-home sales accounted for 16 percent of residential property transactions in 2015, according to the National Association of Realtors.
However, the very wealthy can afford to buy several vacation homes.
“This enables them to spend more quality time with their immediate family and their friends,” said Tom Corley, author of “Rich Habits: The Daily Success Habits of Wealthy Individuals.” They may have a home by the beach, lake and a ski resort so they can retreat to any of these places, he added.
These vacation homes are typically large compounds designed to provide the wealthy with privacy, said Sun. Because they usually are so busy, the rich want the time that they do get to spend with family and friends to be free of prying eyes and interruptions.
“You can’t just go to the Hilton and hope no one wants to take a picture of you,” said Sun, explaining why the rich don’t vacation like the rest of us.
If you can’t afford several vacation homes — or even one — you might be able to become part owner through a timeshare, said Corley. Owning a timeshare can give you the opportunity to stay at a particular property every year at a certain time.
And for more flexibility, you can rent someone else’s vacation home through websites such as VRBO.com and HomeAway.com.
3. A Private Jet
Why fly first class when you have enough money to fly in the privacy of your own airplane? After all, you can conduct business meetings and broker deals while you fly, which is a key reason why the wealthy have private jets, said Sun.
Steve Varsano, founder of The Jet Business in London, said he sells private jets to corporate executives, celebrities and heads of state from around the world. The price tag ranges from $500,000 for small, older models to $300 million for an airline-type of jet. The average price, though, is about $9 million, he said.
You can charter a private jet for a lot less, though. For example, six to eight passengers fly for $1,800 to $2,200 per hour on a turboprop plane operated by charter service Pentastar Aviation.
4. A Yacht
Being rich lets you enjoy the toys of the rich — such as a yacht, said Corley.
For example, DreamWorks co-founder David Geffen once bought a 454-foot yacht for an estimated $300 million from former Oracle CEO Larry Ellison, reported Forbes in 2013. The yacht, named Rising Sun, reportedly has 82 rooms, a private cinema and a wine cellar.
While owning a yacht might be out of reach, you can vacation on one by taking a cruise.
The average amount spent on a cruise — including airfare — is $2,200, according to a survey by Cruise Lines International Association. However, you can enjoy a cruise for as little as $100 a day if you take advantage of last-minute deals and avoid paying for a lot of extras on board the ship.
5. A Personal Driver
If you’re super rich, you can afford to buy one — or several — of the most expensive cars in the world, such as a Ferrari F60 America or a Koenigsegg CCXR Trevita. However, Sun said most of her clients don’t drive flashy cars. Instead, they have personal drivers.
“Most of them do not drive,” she said of her clients. They hire someone to drive for them so they can use their commute time to do business. Because time is money, the wealthy make the most of the time they have.
While you might not be able to afford a personal driver, you can let others do the driving by taking public transportation so you can get more work done — and earn more money to, perhaps, pay for a driver one day.
6. Exclusive Investments
About half of Americans invest in stocks, according to a 2016 Gallup poll. Rather than own just a small share of a company, though, the rich can use their money to buy a much bigger stake — entire companies, even.
The rich also have opportunities to participate in little-known investment opportunities available only to the affluent, said Corley. For example, the wealthy can invest in hedge funds, which are generally only available to accredited investors who have earned income that exceeds $200,000 or have a net worth over $1 million, according to the Investor.gov and the Securities and Exchange Commission.
“They have access to things most of us don’t,” said Sun. But that doesn’t mean the rich take a lot of risks with their money. In fact, they tend to invest conservatively, she said, because they want to preserve their wealth.
If you’re investing for the long term — say, for retirement — you don’t want to put all of your money into a risky investment in hopes of a big payoff. In fact, consider the advice of Tony Robbins, millionaire and author of the bestseller “MONEY: Master the Game,” to get diversification by investing in index funds.
7. Teams to Manage Their Business — and Personal Lives
“The very wealthy employ teams, teams at home, teams at work,” said Sun.
The team at work can include business managers, attorneys, publicists and even people to manage their social media. At home, they have a housekeeper, nanny, dog walker and others to assist with daily personal needs, she added. Being able to hire teams gives the rich more time to focus on making money.
The wealthy also can afford the best professionals — such as accountants, financial planners and investment analysts — to help them manage their money, said Corley. Hiring a professional can help you take control of your finances to increase your wealth.
You don’t have to be rich, though, to hire a financial advisor. You can find a fee-only financial planner through NAPFA.org, the website of the National Association of Personal Financial Advisors. Hiring a professional can help you take control of your finances to increase your wealth.
This was article originally posted here for Go Banking Rates.