2 Ways Billionaires Budget Differently Than You — and What You Can Learn
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'While most people stress about saving $5 on coffee, billionaires are looking at ways to turn $1 million into $10 million,' said Andrew Lokenauth, money expert and owner of BeFluentInFinance.com.
'A billionaire client at a previous bank I worked at spends exactly $0 time tracking small expenses,' he noted. 'Instead, he's laser-focused on major wealth-building moves. And that's the first big difference I see — they're playing an entirely different game.'
According to NPR, the U.S. has the most billionaires with 902, followed by China and Hong Kong at 516. But you don't need a private jet to borrow a few of their best habits. Here's what billionaires do differently with their budgets — and how you can apply those lessons to your own financial life.
According to Kevin Shahnazari, founder and CEO of FinlyWealth, they focus on a long-term strategy with wealth accumulation and protection as their top priorities instead of covering immediate costs.
Unlike most folks who focus on covering day-to-day expenses first, billionaires tend to think way ahead. Their budgets are all about growing their wealth over time. They pour money into things that gain value — like real estate, stocks and businesses — and aren't shy about hiring professionals to help them make the most of their money.
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One big thing that sets billionaire budgets apart? They zoom out and see the big picture. Instead of stressing over monthly bills, they focus on growing their wealth through smart moves like diversifying their investments and taking advantage of tax-friendly strategies.
The takeaway for the rest of us? Budgeting isn't just about cutting costs — it's also about making intentional choices that support your long-term goals. That could mean putting money into things with higher returns, like the stock market or real estate, or even investing in yourself to boost your earning potential.
Billionaires also lean on a whole team of money experts like financial planners, accountants and advisors to help them make solid decisions. While most of us don't have a squad on speed dial, working with a trusted advisor can be a great way to get tailored advice and plan smarter.
The bottom line: When you adopt a long-term mindset and think like a wealth-builder, your money starts working for you — not the other way around.
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Andrew Lokenauth, BeFluentInFinance.
NPR, 'More billionaires than ever ranked in Forbes' annual list. Here are the top 10'
Kevin Shahnazari, FinlyWealth
This article originally appeared on GOBankingRates.com: 2 Ways Billionaires Budget Differently Than You — and What You Can Learn
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Texas Cost-of-living index: 91.8 Annual expenditures: $83,241 % of annual expenditures that $100K covers: 120.1% Texas has the country's fourth-least expensive grocery expenditures with a cost-of-living index of 95.8. Texans pay about $563 a month. Residents of the Longhorn State pay more than the national average for utilities — $457 each month on average. 35. Nebraska Cost-of-living index: 92.4 Annual expenditures: $83,786 % of annual expenditures that $100K covers: 119.4% Housing expenditures in Nebraska come in around $13,185 annually, the 12th-lowest figure in the nation. Utilities and transportation are each the 14th lowest. 34. Louisiana Cost-of-living index: 93.2 Annual expenditures: $84,511 % of annual expenditures that $100K covers: 118.3% Louisiana has the country's third-lowest utilities expenditures, with residents paying $360 a month on average. The Bayou State has the seventh-lowest grocery expenditures and 18th-lowest housing expenditures. Try This: 33. Minnesota Cost-of-living index: 93.7 Annual expenditures: $84,964 % of annual expenditures that $100K covers: 117.7% Minnesota ranks 15th among states with the lowest housing expenditures. The Gopher States sits in the middle of the pack for grocery expenditures and other costs. 32. New Mexico Cost-of-living index: 94.2 Annual expenditures: $85,418 % of annual expenditures that $100K covers: 117.1% New Mexico residents pay about 98% of the national median for groceries, about $575 each month on average. Housing costs sit in the middle of the pack, with a cost-of-living index of 90.2. 31. South Carolina Cost-of-living index: 94.6 Annual expenditures: $85,780 % of annual expenditures that $100K covers: 116.6% Groceries in South Carolina cost $537 a month on average, which places the Palmetto State in the middle of the pack. Healthcare expenditures are the 15th lowest in the nation. 30. Illinois Cost-of-living index: 94.7 Annual expenditures: $85,871 % of annual expenditures that $100K covers: 116.5% Average expenditures in Illinois rank in the middle of the pack across all categories. Groceries come in just below the national median, with average monthly costs sitting at $579. 29. Ohio Cost-of-living index: 95.1 Annual expenditures: $86,234 % of annual expenditures that $100K covers: 116.0% Ohioans pay just below the national median for groceries, with the Buckeye State's cost-of-living score at 99.6. Ohio residents pay 86.7% of the national median for housing, which pencils out to an average of $1,212 a month. Trending Now: 28. Montana Cost-of-living index: 96.4 Annual expenditures: $87,413 % of annual expenditures that $100K covers: 114.4% Montana has the nation's ninth-highest grocery expenditures. Utilities are the second-least expensive in the nation, trailing only Idaho. 27. Wyoming Cost-of-living index: 97.0 Annual expenditures: $87,957 % of annual expenditures that $100K covers: 113.7% Wyoming residents pay just over the national median for groceries, about $600 a month. Housing costs come in around $1,275 a month. 26. South Dakota Cost-of-living index: 97.3 Annual expenditures: $88,229 % of annual expenditures that $100K covers: 113.3% South Dakota residents pay about 3.5% more than the national median for groceries — about $608 a month. South Dakota ranks right in the middle — 25th — on housing costs at $1,327 a month. 25. Pennsylvania Cost-of-living index: 97.5 Annual expenditures: $88,410 % of annual expenditures that $100K covers: 113.1% The Keystone State has the nation's 12 lowest grocery expenditures, scoring a 97.4. Utility expenditures are the 11th most expensive. View Next: 24. North Carolina Cost-of-living index: 97.8 Annual expenditures: $88,682 % of annual expenditures that $100K covers: 112.8% North Carolina has the nation's 10th-highest healthcare expenditures. The Tar Heel State scores below the national median in groceries (97.7), housing (94.9), utilities (94.7) and transportation (92.9). 23. Wisconsin Cost-of-living index: 99.5 Annual expenditures: $90,224 % of annual expenditures that $100K covers: 110.8% Wisconsin residents pay slightly below the national median for groceries, $585 on average. Housing is also just below the national median, with average expenditures of $16,725 a year. 22. Nevada Cost-of-living index: 99.5 Annual expenditures: $90,224 % of annual expenditures that $100K covers: 110.8% Nevada residents have the lowest healthcare expenditures in the nation, paying about 85% of the national median. That translates into an average of $534 a month. 21. Utah Cost-of-living index: 100.5 Annual expenditures: $91,130 % of annual expenditures that $100K covers: 109.7% Utah residents enjoy the fifth-lowest healthcare expenditures in the country. Utilities are also the fifth lowest. 20. Virginia Cost-of-living index: 101.4 Annual expenditures: $91,946 % of annual expenditures that $100K covers: 108.8% Virginia's average expenditures are mid-level compared to other states. The Old Dominion State does have the country's 13th-lowest transportation expenditures. Discover More: 19. Idaho Cost-of-living index: 102.0 Annual expenditures: $92,491 % of annual expenditures that $100K covers: 108.1% Idahoans pay only about 74% of the national median for utilities — $327 each month on average. That's the lowest in the nation. Transportation costs are the nation's ninth highest. 18. Florida Cost-of-living index: 102.0 Annual expenditures: $92,491 % of annual expenditures that $100K covers: 108.1% Florida residents pay about 90% of the national median for healthcare. That's the sixth-least expensive in the country. 17. Delaware Cost-of-living index: 103.5 Annual expenditures: $93,851 % of annual expenditures that $100K covers: 106.6% Delaware has the nation's 17th-highest healthcare expenditures, with residents paying nearly 7% more than the national median. The First State ranks in the middle of the pack in other expenditure categories. 16. Colorado Cost-of-living index: 104.0 Annual expenditures: $94,304 % of annual expenditures that $100K covers: 106.0% Colorado scores a 102.6 on grocery expenditures compared to a national median of 100. That translates to $603 each month on average. 15. 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Arizona Cost-of-living index: 112.5 Annual expenditures: $102,012 % of annual expenditures that $100K covers: 98.0% Arizona's cost-of-living index for housing comes in at 134.8. That ranks the Grand Canyon State seventh in the country for the most expensive housing. 11. Oregon Cost-of-living index: 112.7 Annual expenditures: $102,193 % of annual expenditures that $100K covers: 97.9% Oregon has the nation's seventh-most expensive groceries, 11th-most expensive housing, fifth-most expensive transportation and fifth-highest healthcare expenditures. 10. Maine Cost-of-living index: 113.4 Annual expenditures: $102,828 % of annual expenditures that $100K covers: 97.3% Maine sits in the middle of the pack for grocery costs. But the Pine Tree State is relatively more expensive when it comes to housing, which is 33.2% higher than average — the country's ninth highest index. For You: 9. Connecticut Cost-of-living index: 113.5 Annual expenditures: $102,918 % of annual expenditures that $100K covers: 97.2% Utilities are relatively expensive in Connecticut, with residents paying an average of $562 each month. That's the fourth highest in the nation. 8. Vermont Cost-of-living index: 113.7 Annual expenditures: $103,100 % of annual expenditures that $100K covers: 97.0% Vermont ranks in the top 12 for the most expensive groceries (fifth), housing (12th), utilities (ninth) and healthcare (eighth). Transportation costs are only the 19th-most expensive. 7. New Jersey Cost-of-living index: 114.8 Annual expenditures: $104,097 % of annual expenditures that $100K covers: 96.1% New Jersey residents pay the sixth-highest average costs in the nation for housing – just over $2,000 a month. Healthcare is the 13th-most expensive. 6. Maryland Cost-of-living index: 114.9 Annual expenditures: $104,188 % of annual expenditures that $100K covers: 96.0% Maryland residents pay about 5% above the national median for groceries, which pencils out to $618 each month on average. Housing costs are the nation's eighth priciest. That's Interesting: 5. New York Cost-of-living index: 124.7 Annual expenditures: $113,074 % of annual expenditures that $100K covers: 88.4% The cost of living in the Empire State varies widely based on where you live. Overall, New York has the country's fifth-highest housing costs, 12th most expensive groceries, seventh most expensive transportation costs, and 11th most expensive healthcare. 4. Alaska Cost-of-living index: 127.3 Annual expenditures: $115,432 % of annual expenditures that $100K covers: 86.6% Alaska has the nation's most expensive healthcare, with residents paying $891 a month on average. Alaska also scores a sky-high 130.3 on grocery costs. 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The Aloha State has the highest grocery expenses ($791 a month). The housing index is a whopping 292.1, nearly three times the national median. Utilities and transportation are also the country's highest. Healthcare costs trail only Alaska and Massachusetts. Methodology: For this analysis, GOBankingRates first sourced the national average annual expenditures for people with incomes between $100,000 and $149,999 from the Bureau of Labor Statistics' 2023 Consumer Expenditure Survey data. GBR then created state-level annual expenditure estimates by multiplying the national figure by each state's cost-of-living index for Q1 2025 from the Missouri Economic Research and Information Center. Finally, GBR determined what percentage of annual expenditures is covered by $100,000 by dividing $100,000 by each state's average annual expenditures estimate. All data was collected on and is up to date as of July 29, 2025. More From GOBankingRates 5 Ways Trump Signing the GENIUS Act Could Impact Retirees6 Popular SUVs That Aren't Worth the Cost -- and 6 Affordable Alternatives This article originally appeared on How Far a $100K Salary Will Go in Every State Sign in to access your portfolio
