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The Money Magazine September issue created a snapshot of how America’s millionaires spend their money. It estimates that in 2017 five percent of millionaires with a household net worth of one to five million dollars, spend more than $5000 a year on arts and entertainments.
Similarly, 14 percent of those with a household wealth of five million or more also spend more than $5000. After reading this I wanted to find out what percentage of their wealth these numbers reflect. So I calculated that if a millionaire’s wealth is five million, then $5,000 a year for entertainments reflects a mere 0.1% of their wealth.
Consider the fact that the article says “spent more than $5,000,” key word being “more.” That means that the remainder 95% of millionaires with a net worth of one to five million spend $5,000 or less and 86% of those with a net worth of five million or more also spend less than $5,000 in arts and entertainments.
Let’s compare that same percentage to the middle-class, average American. If your household wealth is $50,000, 0.1% or $50 will get you ready to behave like a millionaire. 76% of America’s millionaires are also married so let’s double the household wealth to $100,000. Then 0.1% or $100 will go to entertainment.
Therefore, I took it upon myself to come up with ways of entertainment that will try to hit that mark and make entertainment cheaper and more enjoyable. So here are five cheaper ways of entertainment under $100.
1.) Netflix 7.99/month or $95.88/year
Having family over or scheduling a nice movie at home has gotten way cheaper. The opposite would be going to the movie theater where movie tickets can range from $8-$16 a ticket without taking into account snacks. If you were to do that once a month for 12 months you will rack up a bill for $96-$192 a year, again without accounting for snacks. Don’t like the options that this streaming site gives you? Well, there’s Apple TV and Amazon’s Fire TV Stick.
2.) Customized TV (Apple TV & Fire TV stick)
The ways of classic tv channels are rapidly changing. Most people want more quality as opposed to quantity. Apple TV and Amazon’s Fire TV Stick are part of that movement. We used Apple TV in my household to watch movies that were not on Netflix, and unless it’s a recently released movie, you won’t spend more than five dollars on a movie. You’ll spend $40-$70 on the initial purchase of any of these two devices, yet that is still under the .001% allocated for entertainment.
This is by far my favorite form of entertainment. About two years ago I purchased an Amazon Kindle, and it has been working flawlessly since then. The benefits are endless! The electronic books are usually cheaper than hard copies and they arrive instantly to your device. An added benefit is the local public library system. Most public libraries have modernized their inventory, so most books are available as digital downloads and they go straight to your Kindle or whatever device you have.
The price for a Kindle Paperwhite (the one I have) is normally around $119.99. I bought a refurbished one for less than $100, and like I said it has lasted for more than 2 years.
4.) Amazon Prime
So far we are taking advantage of the 6 month trial from Amazon Prime. It has been great, we’ll see if we can fit this into our budget in the future. The benefits of Amazon prime are amazing. Not only do you get a discounted shipping price on your orders, but they also have Prime Video.
Much like the service you get from Netflix, Amazon Prime combines some of the best shows and movies when you become a prime member for only $99. Try them out, students get an additional discount!
5.) Support the local arts
This is not only a cheap way to socialize with people in your area, but it is also a way to support your community. Look around your place for ways to entertain yourself and support your community. It could be anything from an art exhibit of local artists, a play, or trivia night at your neighborhood restaurant or bar.
Make sure that you also set aside day to treat yourself to a nice outing. Make room in your budget to enjoy some of the money you’ve worked so hard to earn, but don’t make overspending a habit.
So here’s what American millionaire’s spend the rest of their money on:
Net worth of $1-$5 Million
- Automobiles- 10% spent more than $25,000
- Charity- 18% spent more than $5,000
- Travel- 19% spent more than 10,000
- Jewelry- 4% spent more than $5,000
Net worth of $5 Million or more
- Automobiles- 22% spent more than $25,000
- Charity- 48% spent more than $5,000
- Travel- 48% spent more than $10,000
- Jewelry- 6% spent more than $5,000
Are you ready to behave like a millionaire?
What do you think of these forms of entertainment?
Do you have any other recommendations?
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