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If millionaires wish to use their money wisely they need to create a budget. Of course, many of them may hire financial planners instead of using free spreadsheet software to work out where their money should go. However, the same principle applies: decide how to spend your money before you make purchases. Just as non-millionaires can be impulsive and fail to track their expenses, millionaires are also capable of making this budgeting mistake. People are people, and they make emotional decisions. If a millionaire doesn’t budget properly and starts spending on personal chefs, expensive cars, and other luxury amenities, they may quickly run out of money. Sometimes millionaires, especially new millionaires, feel they have so much money that they lose perspective on what they can afford.

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