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The Wall Street Journal recently highlighted a notable shift among higher-earning Americans: They’ve gotten thriftier.

Although they still find a spa vacation or elegant jewelry worth the expense, a growing share of higher-income consumers are looking for bargains on essentials like food and household supplies. Like everyone else, these “frugal rich” are feeling the squeeze of inflation and thinking harder about long-term value, according to the Journal.

So what?

However much you make, it’s worth considering how the frugal rich mindset could influence your own spending priorities. (And for what it’s worth, one data provider cited by the Journal considers a three-person household earning above $156,000 to be high-income.)

Here are five takeaways that can apply to any of us:

Price doesn’t necessarily equate to value. Usefulness and impact can be more important.

Frugal high-income shoppers aren’t buying premium versions just because they can afford to. If off-brand yogurt or wrapping paper from the Dollar Tree are just as good, they’re choosing to save the money. They’re saving the splurge for when they think it will actually make a difference.

In fact, 65% of U.S. consumers say brand names matter less than they used to, according to a recent survey by the International Council of Shopping Centers. And 20% of consumers say private labels — the ones made for specific retailers (like Costco's Kirkland Signature or Walmart's Great Value) — are just as good as name brands, according to Numerator, a market research firm.

Off-brands may be turning into on-brands.

Budget retailers are making a name for themselves. To attract higher-income shoppers looking for deals, Walmart launched what it called an “elevated” grocery label in 2024 and has added dozens of new beauty brands. Meanwhile, Dollar Tree is moving into more posh neighborhoods, according to a Bloomberg analysis.

Cost-consciousness is in vogue.

If anything, the frugal mindset illustrates a universal truth: Just as spending a lot doesn’t necessarily mean you have a lot of money, not spending much doesn’t mean you don’t.

Take billionaire investor Warren Buffett, who is famously frugal, living in a modest house he bought in the 1950s. According to him, your decisions about spending should adhere to your own “internal scorecard” — not the values of your peers or neighbors.

Every little bit adds up.

Sometimes we assume small decisions can’t move the needle on our budget, so why bother. But higher-income bargain hunters are looking to save on groceries, toiletries, and other household items — not big ticket items. If you’re saving $2 here and $5 there, it can add up to meaningful savings.

Experiences may be worth the splurge.

While high-income shoppers are more apt to cut corners on essentials, they’re still spending on extras like wellness, entertainment, and travel — things that tend to offer more bang for their buck.

As you’re evaluating whether an expenditure is worth the money, maybe ask yourself what you’ll remember about it next year or 10 years from now. Chances are your memories from a skydiving lesson or a transatlantic trip to find family roots will hold value better than most things bought from a shelf.

Related Readings

•   When Money Is Tight, Should You Still Treat Yourself? (SoFi)

•   Self-Made Millionaire Millennial: 7 Frugal Habits I'll Never Give Up (CNBC)

•   The American Consumer Is Running on Fumes. Expect Less Restaurant Spending and Smaller Vacations This Summer (Barron's)

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