4 Monthly Bills Rich People Often Cut Faster Than Everyone Else

4 Monthly Bills Rich People Often Cut Faster Than Everyone Else

Nicole Spector

Sat, September 5, 2026 at 8:00 PM GMT+3 3 min read

It's well-known that wealthy people enjoy tax breaks that non-wealthy people do not, as recently reported on by the Center for American Progress. They may enjoy paying no taxes at all, even.

Take Jeff Bezos as an example: In 2007 and in 2011, he paid $0 in federal taxes, according to an investigative analysis by ProPublica. This, you may assert, is a very extreme example of how the wealthy get wealthier. Fair — but there's truth in the notion that in the U.S., wealth rewards wealth by allowing rich people to get a pass on expenses people of lesser means can't get out of.

Consider these four common monthly bills that rich people often cut faster than everyone else. As we look at them, it becomes clear why wealthy folks are able to cut these bills faster than, say, a middle-class American. The answer isn't "because rich people are the smartest with money" but more along the lines of "because they can afford to."

Mortgage

According to the National Association of Home Builders, most Americans are unable to afford a median-priced home even with a mortgage loan. Those Americans who can afford a home typically take out a mortgage because they cannot afford the home outright.

Much like a credit card loan, a mortgage loan always has an interest rate, meaning that if you take out a mortgage loan, be it for 15 or 30 years, you're paying more for your home over time than you would if you could afford to pay for it upfront. It's a pretty lousy setup, but what else can we do?

A rich person may decide that it is in her best financial interest to take out a mortgage loan, but she won't be cornered into it. She has the freedom to eliminate or avoid a monthly mortgage bill by purchasing a home outright in cash.

Car Payments

If you're rich and you want to own a car, your smartest financial bet is to go own the car — meaning, pay for the whole vehicle upfront on a debit card. This is how you avoid overpaying for the car via interest (rates are currently between 3.89% and 7.39% on a new car, depending on the details, according to Navy Federal Credit Union).

Rich people cut out or completely avoid monthly auto loan bills because they know that loans only make purchases pricier long-term and, again, because they can afford to not borrow money on big-ticket items.

Auto Insurance Premiums

Rich people are not immune to the need for auto insurance, but they do have a way of cutting this monthly bill. Their trick? Making it an annual bill instead.

When you buy auto insurance you usually have the option of paying the full premium upfront or paying in monthly installments. It may be a lot of cash to cough up, but paying insurance premiums upfront is almost always cheaper than dividing the bill into small payments, per SWBC.

Bank Fees

The wealthy are also quick to cut or avoid bank fees that litter the fine print of premium accounts. Often the most rewarding bank accounts (think high yield savings accounts with wildly above-average APYs) impose fees if, for example, you fall below a certain balance one month or fail to contribute more cash.

Rich people can easily keep up with a bank account's requirements so they avoid fees and generate the most interest. People living paycheck to paycheck, on the other hand, are not so financially privileged as to avoid fees that, when it comes down to it, are actually penalties.

This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.

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