When millionaires were asked if they would cut back on their luxury items, 64% said yes. Though only 12% said they were worried about losing their jobs, cutting back on luxuries seems par for the course.

Though determining what “luxury items” means to the millionaires might be a tricky proposition, this finding shows that while the wealthy are returning to the market (see page 6), they are still cautiously preparing for the economy to get worse before it gets better. An obvious luxury, household help, seems safe from the cutting block; only 14% reported reducing this expense, though it is unknown how many Millionaires have household help. A luxury for the wealthy may be the difference between domestic and international travel. Thirty-six percent will be cutting back on international travel, opting for domestic instead.

Whether or not this is a reaction to the more green-friendly thinking that has gripped the country or a response to the ailing economy, 47% of those polled are considering a new or used car with better fuel efficiency, while 65% are planning on keeping their current car for longer. Considering that filling up a high end SUV can cost upwards of $80 these days, this might have become more of a perk than given in the wealthy household.

Cutting luxury items is a logical step in a recession, and not very surprising. Speaking to advisors about your budget, your “luxury” expenses, and what you may be able to expect in the future if the economy doesn’t bounce back quickly is a smart step for every wealthy household. If you haven’t already, now is the time to ask about recession-proof investment vehicles and other ways to protect your investments during this uncertain time.

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