Everyone dreams of being wealthy, but most of us struggle to ever make it happen.
The good news is you don’t need to be born into wealth to become rich. The even better news is that there are habits you can adopt to achieve your financial goals.
The wealthiest people in the world have developed certain habits that have helped them accumulate their wealth over time. They aren’t always easy; many of them need discipline and a steady approach. But they are habits that anyone can learn and imitate.
In this article, you will learn 9 money habits of the rich that you can start incorporating into your own life today. Your financial situation will be turned around for the better in no time.
1. They Set Goals for Their Money
Rich people set goals for their money because it works. Setting goals changes the way your brain works so that you see and naturally act in ways that will help you reach your goals.
These goals aren’t only about buying things. They could be about making a certain amount of money, becoming a millionaire by a certain age, or saving for college.
So what financial goals or milestones do you want to reach with your money?
Consider what you’d like to achieve short-term (such as saving $500 in three months), mid-term (such as paying back your student loan in 4 years), and long-term (such as being mortgage-free in 25 years).
2. They Have Self-Control
Rich people usually have good habits overall, and not just with their money. People who have a lot of money because they worked hard and earned it are very honest and disciplined.
Financial discipline is how well you can stick to your plans for how much you spend and how much you save in order to reach your financial goals. This is also related to setting goals.
Your financial goals will still be there whether you are working on them or not. They will just be that much harder to reach if you aren’t disciplined.
Being disciplined means ignoring short-term pleasures for the sake of long-term happiness.
For example, rather than upgrading to the newest iPhone, you could use that money to invest in yourself. Spend the money on a course that teaches you new skills to get promoted, or use it to start your own small business or side hustle, where you can create another income stream.
3. They Don’t Get Into Debt
Rich people usually don’t owe money to others because you can’t get rich if you’re in debt. So avoid it like the plague.
Debt is the biggest problem when it comes to making money and getting rich because you don’t have “extra” money to invest and save for retirement.
Sometimes, you have to give up things in your life now so that you can live better in the future. If you’re worried about debt, take a step back and ask yourself, “What am I willing to give up temporarily so I can get out of debt?”
To stay out of debt, you should have an emergency fund, stick to your budget, and be responsible.
4. They Don’t Try To Be Like Everyone Else
Rich people don’t bother to keep up with the Joneses. They don’t compare themselves to their neighbors or try to be as “good” as them by getting what they have when they can’t afford it. Rich people know what they want and aren’t influenced by what others are doing.
This is a habit that rich people have with their money that you need to get into. Erase the mindset of wanting to impress people with a particular lifestyle when you know well enough that you cannot afford it.
Living beyond your means will catch up with you.
So much money is wasted on constantly upgrading gadgets to keep up with the latest trends, even if you can’t afford to do so. This will cost you money and even opportunities.
Before you buy something, think about how much money you have and what your personal goals are.
5. They Have More Than One Way to Make Money
One source of income is not enough to make you rich. If you study rich people, you’ll find that most of them have multiple ways to make money. It’s safe to say that rich people always look for different ways to make money.
Having more than one income source reduces financial risks. If one source of income drops, you have other sources to keep you going. You will be able to keep going even if something unexpected happens.
You can make money in different ways based on your interests, skills, and passions. It is easiest to start with something small like a side hustle and grow it into something bigger.
For example, starting with passive income gives you more time to work on your main source of income. Writing a book, doing affiliate marketing, or making audio or video productions are all examples of passive income.
As you try to make more than one source of income, resist the urge to try everything at once. Focus on one thing at a time to get the most out of it.
6. They Put Savings and Investing At the Top of Their List
Wealthy people know that investing is one of the most important ways to grow their money, so they put their money to work for them.
Saving and investing are two priorities, but they are different things. The biggest difference between them is the level of risk taken.
Saving doesn’t always make you rich – but it can help you out in a pinch, avoid debt, and give you a sense of financial security.
Investing gives you a chance to earn a higher return, but it also comes with a higher level of risk. When you invest in something, don’t put in more than you can afford to lose.
It’s also best to invest for the long term. When you can keep your money invested for longer, you have more time to ride out the market’s ups and downs. If you need help, ask an expert like a trusted financial advisor.
Investing is one of the best ways to build and keep your wealth, and every rich person does it because it gives you something to fall back on, especially as you get older. Save and invest as much as you can right now.
7. They Are Careful With How Much Money They Spend
If you can’t manage what little money you have well, you’ll waste money when you have more of it.
Getting rid of unnecessary spending can make a big difference in your ability to build wealth. Make a budget and separate the things you need from the things you want. Having a monthly budget will help you see where your money is going and where you need to make changes.
Don’t spend based on how you feel. It will only solve your problems temporarily and you’ll be sorry you wasted your money.
Another way to spend less is to limit the number of times you use your credit card. If you only take cash with you, you won’t be tempted to buy things you don’t need. Buying things just because they are on sale is a bad money habit that will make it hard for you to get rich.
8. They Hang Out With People Who Think Like Them
Who you hang out with influences where you end up life. That’s why the rich rarely associate with the average person.
Find people whose financial goals are the same as yours and stay with them. Talk to people who are already living the life you want to live. Find out what they did to get where they are.
Getting along with the right people can make the difference between being rich and being poor. Rich people tend to hang out with people who think positively. This is where great ideas are born that lead to even more wealth.
Having connections will work to your advantage. People who put themselves in a position to be helped are often the ones who get to the top.
9. They Make it a Habit to Know A Lot
Rich people make it a habit to know a lot about their money and how it works. They know how much money they make, what they own, how much their investments cost, what they want, and how they plan to get it.
Not everyone who reads is a leader, but everyone who is a leader reads. This is why wealthy people read every day.
Sometimes investments can be hard to understand. Before making important financial decisions (especially about things you don’t know much about), do as much research as you can or talk to a financial adviser, whichever is best for you.
Listen to the news, sign up for newsletters about money, and read books about money to broaden your mind.
Money Habits of Millionaires You Should Imitate
Adopting the habits of the rich requires discipline and a steady approach, but anyone can learn and imitate them. Small changes can make a big difference over time, so start small and be consistent.
These nine money habits have created millionaires. By copying them, you can join their ranks and become wealthy, too!
Bonus: Get a High Paying Job
Clearly, having a high-paying job is one way to become a millionaire. But having a whole career that’s lucrative will really boost your bank account and net worth. Wouldn’t it be great to make six-figures in your 20s?
Bonus: Get a Promotion
Maybe you already have a decent job, but you’re ready to take on more responsibilities – with more pay, of course. Follow these 8 simple steps, and prove to your boss that they need to promote you.
Amanda Kay, the founder of My Life, I Guess, provides valuable career advice and support for anyone striving to make a living and, more importantly, make a life. Whether it's navigating job searches, learning new skills, overcoming unemployment, or dealing with debt, My Life, I Guess has been a go-to resource for career guidance and financial stability since 2013. Amanda's expertise and relatable approach have been featured in trusted publications such as MSN, Credit.com, Yahoo! Finance, the Ladders and Fairygodboss.