Wealthy consumers are no longer spending lavishly on very visible "flex" items - trophy vacation homes, overly large yachts, flashy logo clothing, speculative crypto art, and huge parties. In addition, they are also stepping back from trophy cars and impulsive real-estate flips. So, why the shift? A combination of higher interest rates and unstable markets turns assets that are difficult to sell and require you to spend on their upkeep into liabilities instead of something to brag about. Besides that, taxes, regulations, and PR risks make it quite uncomfortable and inconvenient to be ostentatious. However, the biggest cultural change behind this is that quiet luxury and privacy are more attractive than billboard status. Younger wealth prefers buyables that are more useful, durable, and have a positive impact - things that can unlock time, talent, or give asymmetric returns (boutique healthcare, private tech investments, founders' networks). That means the newest status symbol is optionality — having assets that you can sell, monetize, or scale. Wealthy people are replacing "look-at-me" with "use-me." One interesting final thought: "The smartest purchase in the market today, is not the one that impresses others - it is the one that gives you freedom."

As the CEO of a software company, I've noticed that wealthy people are moving away from traditional software licenses, like Microsoft Office Suite, in today's economy. Many businesses and their wealthy CEOs are moving away from the high upfront costs of annual licenses for traditional software. Businesses are now shifting to subscription-based models, cloud computing, and AI tools. This change reflects the digital era we live in. These high-tech alternatives are more cost-effective, efficient, and profitable for a company. A prime example is choosing the AI tool Airtable instead of traditional tools like Google Sheets or Microsoft Excel. My favorite feature is that Airtable automatically updates data. It connects with AI tools and uses automation to achieve this. In Microsoft Excel, users must input changes to the data manually.

I'm noticing a shift. People with money are buying fewer of those trendy, logo-heavy luxury items. Instead, they're choosing things with better quality and more subtle branding. We see it on our site, demand for flashy premium products falls off when the economy feels uncertain. So if you're marketing to them now, focus on real, lasting value over the temporary hype.

Look, even my wealthiest clients are pumping the brakes on big renovations. That custom wine cellar or top-of-the-line kitchen? It's getting skipped. They're asking for solid basics instead, holding onto their cash until things feel more stable. I'm not saying the luxury upgrades are gone for good, but right now, practical is what sells.

Here's a new trend. My rich clients aren't buying land just for appreciation anymore. Now they want something they can use right now or something that makes money right now. People are tired of betting on what might happen later. They want a real return, not a vague promise. So buy something you can use or rent today. Don't buy land that only pays off down the road.

Wealthy brands are cutting those expensive influencer deals. I've seen this happen. When the economy gets shaky, they start nurturing their own community instead. It's more direct than paying someone for an Instagram post. Even the big software companies notice customers delaying upgrades, just wanting to keep cash on hand. Because honestly, who knows what's next.

Even well-off clients are holding off on big cosmetic procedures right now. The surgeons I work with confirm it, and the numbers back them up. People are sorting their needs from their wants, putting the non-urgent stuff aside. I'd suggest shifting your marketing toward those smaller, more necessary treatments for now. Just keep listening to your patients. Their feedback will tell you what's next.

Reassessment of discretionary spending on luxury watches, high-end cars and flashy second-homes is being observed among high-net-worth individuals. Higher inflation, increased interest rates and economic uncertainty are also causing these investors to adopt more conservative liquidity management. Status-driven purchases are also seeing a decline in favour of assets with value retention or returns, such as investment-grade art or real estate. Sustainability or experience-driven spending is also gaining traction, led by social and environmental awareness. This is not just happening with traditional investments either. These movements are also evidence of an emerging shift in the spending habits of the ultra-rich. This would mean they are shifting their focus on their spending from catering to their wants to their financial well-being in the long run by creating liquidity. This has led to a slow down in the so-called recession proof markets too, like luxury goods, electronics and designer clothes as customers have been waiting for the bubble to burst. Spending is increasingly directed towards alternative investments, health, and education, as these offer more tangible and diversified returns.

Something's changed with my high-net-worth clients. They're backing away from vacation homes, the kind that eat money and get whacked by the market. I know two guys who just sold their beach places to buy into a multi-family complex instead. With the economy so uncertain and maintenance costs climbing, those fancy houses are a tough sell right now. If you're asking me, go for steady rent checks over a fancy address any day.

Even wealthy buyers are skipping homes with crazy media rooms these days. With the economy up and down, they want practical layouts and classic, durable finishes. I've seen houses with those huge wine cellars sit on the market for months. If you're renovating to attract these buyers, stick with what's actually useful. All that fancy, impractical stuff just slows down the sale.

Even people with money are getting cautious about opening new restaurants. A few owners I know would rather fix up their current spots than take on a new location. Construction costs are crazy and food trends are unpredictable. If you're in the business, my advice is to make your current place work better before you even think about a second one. It's the smarter bet right now.

On the lending side, those big hotel projects have stalled. Even my clients with money are sitting on their hands. The interest rate situation has everyone spooked, so they're waiting for things to calm down. I'd say we focus on properties with existing tenants and solid rent right now. Let's hold off on the speculative stuff until the market settles down a bit.

Even big brands that are killing it are holding off on huge CRM upgrades and expensive influencer campaigns lately. Building a community isn't the only answer, but it's what keeps working in SaaS when things get shaky, mostly because people actually respond to it. I'm seeing successful businesses pull back from flashy spending and focus on whatever delivers a clear, steady return on their money.

Here's what's happening with restaurants right now. Rich people aren't bothering with those $20 burger joints anymore. They're either splurging on real fine dining or staying home with their own cooking. That whole in-between market is dying. We learned this the hard way - had to stop with the fancy signs and actually make food worth eating. Starting a restaurant today? Skip the marketing budget and spend it on ingredients instead.

I have some wealthy clients, the ones you'd think are totally solid, and they're hesitating on big life insurance policies. They're even pulling back on things like art. It used to be standard to have these huge policies. Now they're converting to term or reducing coverage just to keep cash on hand. With the economy being so unpredictable, it makes sense--everyone wants that flexibility in case things change fast.

I'm finding my clients don't want the big cosmetic surgeries with weeks of downtime anymore. They travel too much and can't step away from work that long. Now they're all asking for smaller treatments with faster recovery and more subtle results. Honestly, if you're thinking about getting work done, the procedures that let you get right back to your life are the ones that make sense now.

I've observed that even high-net-worth consumers are being more intentional about what they buy and that includes buying less luxury for the sake of luxury. Items like ostentatious designer accessories, extravagant novelty electronics, and ultra-premium edible gifts that focused on luxury over meaning are seeing reduced demand. The calculus of spending has shifted now to something more intentional. After the last few years with the uncertainty, inflation, shifting values - wealthy consumers are seeking things based on substance over status. They are buying products that convey thoughtfulness, personalization, and emotional stability. At The Happy Food Company for example, we've seen affluent consumers view our curated care or movie night hampers as a superior value than buying more extravagant, expensive hampers. They want comfort, nostalgia, and connectivity - not flashy. It's a quiet luxury mindset: quality, warmth, and intention has superseded impulse and excess. In short, people are no longer buying by the price tag; they are buying by the meaning.

Even my wealthiest clients are backing off single-family rentals lately. They keep telling me the cap rates are too tight and the appreciation just isn't there anymore, which makes these deals pretty boring. Honestly, I think the smart move is to watch the economic signals for now. Most are sitting on the sidelines, waiting for the numbers to make sense again before jumping back in.

Even clients with cash to spare are holding off on those mountain retreats and city condos. The pandemic boom is over. My high-end listings are getting way fewer showings and the inventory is just sitting there. So if you're looking at luxury property right now, my advice is to focus on the basics over something that's just for fun.

Even the rich have begun to refrain from making impulse purchases on luxuries. High fashion selections, extravagant timepieces, and even supercars are no longer being purchased as quickly. The rich are spending on the more valuable holdings, things as real estate, education, wellness, and worthwhile experiences. Rather, it is a value statement. Senseless ostentation is valued less than it was, and the elite have started to understand the need to invest in things that are going to be valuable and meaningful as opposed to just glossed over and valued in the short term. The shift in spending culture is certainly deliberate and far from ostentation, that's for sure. The spending of today's elite consumer reflects their values, adds to their quality of life, and is for a purpose rather than being a demonstration of affluence and wealth.