When you think of “rich people habits,” do images of luxury cars, mega-mansions, and private jets pop into your mind? It’s easy to focus on the flashy aspects of wealth, but what truly sets the wealthiest people apart is less about how they spend and more about how they manage their money, time, and habits. If you're a millennial or young entrepreneur eager to level up in the school of life, adopting these habits can put you on the fast track to financial success.
In this article, we’ll explore the proven habits that the wealthiest individuals swear by, explain why they work, and give you actionable tips to apply them in your own life. Along the way, I’ll also share some must-read books that will deepen your understanding of these principles and provide affiliate links if you’re interested in picking them up.
This post is all about rich people habits that can change your life.
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RICH PEOPLE HABITS
1. Track Every Dollar: The Power of Budgeting
Why It Works: One of the key differences between the rich and poor comes down to money habits. Wealthy people, especially self-made millionaires, track every dollar.
In Rich Habits: The Daily Success Habits of Wealthy Individuals by Thomas C. Corley, he reveals that 67% of wealthy individuals stick to a budget.
Tracking your spending isn’t about restricting yourself—it’s about making informed decisions and ensuring that every dollar has a purpose.
What to Do: Start by creating a budget that is realistic and suits your lifestyle. Allocate funds to different categories like savings, investments, and everyday expenses. Tools like Mint and YNAB (You Need a Budget) are great for helping you keep track of where your money is going.
What Not to Do: Don’t ignore your spending habits or rely on guesswork. Without a clear budget, it’s easy to overspend, accumulate credit card debt, and delay your financial goals.
👉 Related Article: How To Pay Off Credit Card Debt Fast
2. Prioritize Savings and Emergency Funds
Why It Works: The wealthiest people save with intention. Building an emergency fund is usually their first step in securing their financial future. A well-funded emergency account (typically 3-6 months of living expenses) is crucial for covering unexpected expenses, such as medical bills or sudden job loss, without derailing your financial plans.
What to Do: Aim to save at least 20% of your income. Automate these savings to ensure consistency. A high-yield savings account or a tax-advantaged Roth IRA can help you get more bang for your buck.
Book Recommendation: For more strategies on saving and growing wealth, check out The Millionaire Next Door by Thomas J. Stanley and William D. Danko. This classic book reveals how many millionaires live below their means and prioritize savings over flashy spending.
What Not to Do: Don’t dip into your emergency fund for non-emergencies like vacations or impulse buys. This fund is strictly for unforeseen financial setbacks.
3. Invest Consistently and Wisely
Why It Works: The wealthiest people don’t rely solely on savings accounts—they put their money to work. Investments in assets like stocks, ETFs, rental properties, and businesses are essential for growing wealth over time. Warren Buffett, one of the richest men in the world, advocates for low-cost index funds as a steady way to build wealth.
What to Do: Start small but stay consistent. If you’re employed, take advantage of your employer’s 401(k) match and consider consulting a certified financial planner (CFP) to help you design a diversified portfolio. Index funds, ETFs, and real estate can all be part of a solid investment strategy.
Book Recommendation: The Simple Path to Wealth by JL Collins is an excellent guide for beginners and explains why consistent investing in simple, low-cost index funds is one of the smartest paths to financial independence.
What Not to Do: Don’t fall for get-rich-quick schemes. Chasing hot stock tips and investing in speculative assets often leads to losses. Focus on long-term, steady growth instead.
4. Live Below Your Means—Even When You Earn More
Why It Works: It’s not about how much you make; it’s about how much you keep. The wealthiest individuals often live surprisingly modest lives. According to Tom Corley’s research, 77% of wealthy people live in homes that cost less than 30% of their income. They drive modest cars and avoid flashy expenses, which allows them to save more and invest more over time.
This one is arguably controversial, people have a lot of mixed feelings about living below their means. It's a trend called 'Stealth Wealth', I think it's meant to scare off the gold diggers and haters. Join the conversation over on Reddit here.
What to Do: As your income grows, resist the urge to increase your spending. Instead, funnel that extra money into savings, investments, or paying off debt faster. Adopting a frugal mindset can drastically improve your financial future.
Book Recommendation: For timeless lessons on managing money and living below your means, The Richest Man in Babylon by George S. Clason offers practical advice told through engaging stories.
What Not to Do: Don’t try to keep up with the Joneses. Chasing a lifestyle you can’t afford will only lead to debt and stress.
5. Network With the Right People
Why It Works: Successful people understand that their network is their net worth. Wealthy individuals are intentional about surrounding themselves with others who share their goals and values. Whether it’s joining mastermind groups or finding mentors, they build relationships that help them grow personally and professionally.
What to Do: Seek out groups and communities where you can connect with like-minded people. Whether through local events, online forums, or professional organizations, building a supportive network is key.
Book Recommendation: Richard Branson’s Losing My Virginity offers insights into how networking and building the right relationships were vital to his success as an entrepreneur.
What Not to Do: Don’t waste time on relationships that don’t align with your goals. Be strategic about who you spend time with and seek out those who inspire you to grow.
If you're an entrepreneur and want to explore how to surround yourself with rich people, then follow along with this Reddit conversation here.
6. Set Daily Goals and Make a Habit of Self-Improvement
Why It Works: Wealthy people are goal-oriented and prioritize self-improvement. They break down their big dreams into small, actionable steps they can achieve daily. This habit, combined with a commitment to lifelong learning, is a key driver of their success. Many successful people are avid readers and continuously seek new knowledge.
What to Do: Start each day by writing down 2-3 key goals. Whether it’s saving a certain percentage of your income, improving a skill, or expanding your network, setting and achieving small goals daily builds momentum toward larger financial success.
Book Recommendation: Atomic Habits by James Clear is a must-read for anyone looking to build positive habits that can transform their life.
What Not to Do: Don’t get complacent. If you stop setting goals or challenging yourself, you risk stagnating and falling behind.
7. Avoid bad Debt Like the Plague
Why It Works: While some debt can be considered "good debt" (arguably like mortgages or student loans), many wealthy individuals avoid unnecessary debt such as credit card balances or high-interest loans. High debt erodes your net worth and limits your ability to save and invest. Tom Corley’s research found that the wealthiest individuals are reluctant to take on debt. However, rich businessman such as Robert Kiyosaki advocated for using "good debt" to buy assets that generate a return and put money in his pocket.
What to Do: If you have existing credit card debt, prioritize paying it off as quickly as possible. Use strategies like the snowball or avalanche method to become debt-free. Once you’re out of debt, make it a habit to pay off your credit card balances in full each month.
Book Recommendation: Dave Ramsey’s The Total Money Makeover is a comprehensive guide to getting out of debt and staying debt-free.
What Not to Do: Don’t rely on credit cards to fund your lifestyle. If you can’t pay for something in cash, reconsider whether it’s truly necessary.
👉 Related Article: Top 10 Financial Mistakes College Students Make (& How To Fix Them!)
8. Plan for Retirement Early
Why It Works: Wealthy people understand the power of time and compound interest. Planning for retirement is something they start early on. Whether it’s contributing to a 401(k), opening a Roth IRA, or investing in tax-free accounts, they know that time is their greatest ally in building a comfortable retirement fund.
What to Do: Begin contributing to your retirement savings as soon as possible. Take advantage of any employer matches for your 401(k) and explore options like a Roth IRA. Consistent contributions, even small ones, will grow significantly over time.
Book Recommendation: Your Money or Your Life by Vicki Robin and Joe Dominguez offers a transformative approach to money management and retirement planning.
What Not to Do: Don’t put off retirement planning, thinking you can catch up later. The sooner you start, the easier it will be to achieve financial freedom in your golden years.
9. Be Charitable and Give Back
Why It Works: The wealthiest people don’t just focus on accumulating wealth—they also prioritize giving back. Warren Buffett and Richard Branson, among others, see charitable giving as an essential part of their financial success. Giving back not only helps those in need but also fosters a mindset of abundance.
What to Do: Start incorporating charitable giving into your financial plan, whether it’s donating a certain percentage of your income or supporting causes that are important to you. Even small contributions can make a big impact.
What Not to Do: Don’t wait until you’re “rich” to give. Start building the habit of generosity now, even if it’s just a small amount.
Final Thoughts on Rich People Habits to Build Your Wealth
Success and wealth don’t come overnight. The habits of the wealthy are developed over time with consistency, discipline, and intentionality.
Now that you have a clear understanding of what "rich people habits" look like, it’s time to apply them to your life. Remember, building wealth isn’t just about making more money—it’s about creating smart habits that allow you to save, invest, and live a balanced life.
Ready to dive deeper into these strategies? Here’s a list of must-read books that will help you along the way:
- Rich Habits by Thomas C. Corley
- The Millionaire Next Door by Thomas J. Stanley and William D. Danko
- The Richest Man in Babylon by George S. Clason
- Atomic Habits by James Clear
- The Simple Path to Wealth by JL Collins
Want to learn more about how to improve your financial life? Check back weekly for new articles, or explore the archives for more resources that can help you thrive in the school of life. Don’t forget to pick up one of the books mentioned here for even more actionable advice on building wealth and creating lasting success!
This post was all about rich people habits that can change your life.
