Have you ever wondered how some rock, while others just scratch their heads? Here’s a secret: Habits make up wealth, not just a fat paycheck and luck. I mean, yes, those seemingly small, everyday little decisions can change your financial life in monumental ways. I will be looking at the money habits of rich people that you can copy to build your wealth. No worries, you don’t need a trust fund to do any of these tips, and they’re simple and actionable. Grab a coffee, and we’ll de-throne the storm clouds with these secrets to financial success!
1. They Live Below Their Means
You’ve heard all the stories of the billionaires that are still driving old cars and living in humble houses. One example is Warren Buffet, one of the richest people on the planet who still lives in the house he bought in 1958! The rich don’t spend on fancy things; they put away what they don’t spend.
What You Can Do:
- Don’t spend like the checks are coming in endlessly.
- Start a budget and stick to it. Mint or YNAB are just tools to help.
- Always focus on value instead of brand names.
2. They Invest Consistently
Knowing money sitting idle is losing value from inflation, rich people also understand that the money they invest will deliver higher returns. That’s why they regularly invest in stocks, real estate, businesses, or other assets. One study by Fidelity found that 88 percent of millionaires are self-made — so disciplined investing is a key habit for most successful people.
What You Can Do:
- Start small. Even spending $50 a month on an index fund can compound very well over time.
- Albert Einstein called learning about compound interest, “the eighth wonder of the world.”
- Minimize risk by diversifying your portfolio.
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3. They Prioritize Learning and Self-Development
Long haul is learning. A year, Bill Gates reads about 50 books, and Oprah Winfrey credits her success to one’s love of learning. Investing time and money into education and personal growth is what generally keeps the wealthy ahead.
What You Can Do:
- Always read 1 book per month on personal finance or self-improvement.
- Join online courses free or for a very affordable price on platforms such as Coursera or Khan Academy.
- Make sure you surround yourself with like-minded, growth-oriented people!
4. They Avoid Bad Debt
They don’t intentionally use debt to build wealth, using it instead for investing in property, for example, while shying away from large-interest consumer debt. For example, credit card debt can become a money disaster.
What You Can Do:
- Make sure to pay off all your credit card balances each month.
- Do not take up extra loans for something such as a luxury car or an expensive vacation.
- Employ debt snowball methods to simplify paying off many debts.
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5. They Track Their Spending
You can’t manage what you can’t measure. People who are rich track their spending, and they know exactly where their money is going. Being stingy isn’t the point; it’s about being informed.
What You Can Do:
- Keep a spending journal for a month or so to see what you have spent your money on.
- Use budgeting apps to do the hard work of tracking for you.
- Limit spending on discretionary areas such as dining out and entertainment.
6. They Build Multiple Income Streams
As most millionaires know, income doesn’t come from just one source. Being passive income stream diversifiers, they are making passive income streams through investments, side businesses, and royalties.
What You Can Do:
- Make something you create into a side hustle.
- Move to a place where you have extra space to rent out (e.g., Airbnb) or begin selling digital products online.
- Build passive income over time by starting a dividend portfolio.
7. They Surround Themselves With Smart People
I mean, you sure heard the saying, “you are the average of the five people that you’re in contact with.” Mentors, advisors, and peers that have achieved success—who inspire and push you to be better—help you stay around rich people.
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What You Can Do:
- Network with others looking to lead an ambitious life; either a group or online community should do.
- Ask someone you admire professionally or financially to be your mentor.
- Go to seminars, workshops, or conferences in your area of interest.
8. They Plan for the Long Term
Wealthy people think in decades, not in days. They can help you plan for retirement or invest your money, or they can help you start and build a business – but they really don’t look at it in the short term.
What You Can Do:
- For 1 year, 5 years, and 10 years, play around with setting financial goals.
- Avoid derailing long-term plans during crises by starting an emergency fund.
- Save and invest automatically, “set it and forget it.”
9. They Give Back
You may think it’s counterintuitive, but you can actually grow wealth by giving money away. There are many wealthy people like Jeff Bezos and Mark Zuckerberg who give to charity. It’s not about being generous—this also gives you purpose and a sense of community.
What You Can Do:
- Give a small percentage of your income to your favorite causes.
- Help others and grow with them; volunteer your time and knowledge.
- Giving thanks is free and has been shown to help with overall well-being.
10. They Stay Healthy
You’ll probably be surprised by this one, but the rich understand that staying healthy is a huge part of being able to remain productive and maintain the wealth they have. According to research by the Global Wellness Institute: Richer people are 50 percent more likely to maintain regular physical activity than those of more modest means.
What You Can Do:
- Exercise at least 3–4 times a week.
- Eat a balanced diet.
- Pat yourself on the back: health is scarce, invest in yourself!
Interesting Facts and Figures:
- 8 percent of the general U.S. population save between 15 percent and 20 percent of their income, whereas 20 percent of U.S. millionaires save 15 percent or more each year.
- An average millionaire reads at least two books a month concerning finance or personal development.
- CNBC report: 70 percent of wealthy people track their spending monthly, compared to 33 percent of the general public.
- Only 75% of millionaires have set long-term financial plans, compared to less than 10% of the general population.
Start Small, Think Big
Creating wealth isn’t about making huge changes overnight; it’s about doing small, consistent things that build on top of each other over time. Implementing the Money Habits Of Rich People has nothing to do with being a rich person; they are – very basically – simple strategies that can be adopted by anyone.
That’s why you should start tracking where you’re spending your money, automating savings, and investing for the future. Keep in mind that making it to financial success is not a race, it’s a marathon. And who knows? If you have the right habits, you could end up being the next millionaire in the making.
The question is, what habit will you start today? Let us know in the comments!
With these actionable tips, you will not only achieve better financial health but reach the sense of being in the driver’s seat with your money. As the saying goes, ‘It’s not about how much you make, it’s how much you keep.’