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11 Money Habits of the Wealthy That You Need to Start Right Now

Updated: Jul 26

What does it take to join the ranks of the super-rich?

A genius invention? A lottery win? A lucky investment?

Not necessarily.

In fact, many people who win millions on the lottery often lose all their money soon after. Many end up in more debt than they started with.


Because they have not developed good money habits and were not equipped to handle such a large sum.

The same bad money habits that meant they were poor in the first place were the reason they lost their winnings.

In contrast to this, rich people are rich because they have developed good money habits.

You could strip a millionaire of all their wealth, but they will likely be millionaires again within a few short years, if not months.

So what are these financial habits of the wealthy?



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Millionaire Money Habits

Control Your Spending Habits

This might seem like a no-brainer, but it's worth a mention.

Those takeaways and coffee breaks soon add up. Not to mention the nights out around town (which can easily exceed £100 per night) and the Amazon impulse-buys.

You might think it impossible for a millionaire to blow all their money on these things, but trust me, it's not. And if you don't get these habits under control now, you'll never be a millionaire. Not even close.

Here are some tips to get your spending habits under control:

  1. Make your meals at home rather than eating out.

  2. Take coffee out with you rather than buy takeaway coffees.

  3. Limit nights out to a maximum of once per month. I know this is hard if you're friends are out, but you need to make sacrifices to be successful.

  4. If number 3 fails, try getting drunk before you go out - you'll save a fortune!

  5. Before making a purchase, think: "do I really need this?".


Keeping track of your spending is the best way to get your finances under control.

Start by going over your bank statements and adding up how much of your money is spent on food, drink, entertainment etc. every month.

Then project this amount over the year to see how much you spend yearly.

You will be surprised how much a small daily spend can add up to a huge amount at the end of the year.

Set yourself a monthly budget for each category and then divide this down into a weekly and daily budget. Keep a record of all your expenses and make sure you don't exceed your budget - easy!

Don't Follow The Latest Trends

Do you always buy the latest model of mobile phone, or always buy brand-new cars?

This is such an unnecessary expense.

You don't need to buy the latest iPhone model every time a new one is released.

Buy a new phone when your current one wears out, and buy an older model; it will likely be less than half the price of the latest model, and function pretty much the same.

These days, many people are trying to 'keep up with the Joneses' by always buying the newest, latest items because their friends/neighbours have got them.

Buying expensive items to show off is a certain path to future poverty.



10 things millionaires do not spend money on - MILLIONAIRE MONEY HABITS

Live Within Your Means

As people start to earn more money, they often start to spend more money as well.

This is known as Lifestyle Creep. It's easily done.

Try this instead:

When you get a pay rise, don't spend the additional money on yourself.

Stick to your budget by putting the same amount aside for personal expenses as you normally would.

Any money left over should be put towards investments that will appreciate over time.

Here are some investment ideas for your additional income:

  • Dividend stocks

  • Mutual funds

  • REITs

  • Property investment

  • Cryptocurrency

  • Premium bonds

  • Start-up businesses

Keep Shopping Around for the Best Deal

You would be surprised at how much you save by spending a little time shopping around, especially with things like insurance and monthly subscriptions.

My insurance renewal quote goes up every year - some thanks for being a loyal customer.

Every year, I shop around and find a cheaper quote than the previous year, sometimes with the same company.

If you applied this to everything you purchase, it will add up to a significant amount over time.

If you manage to make a saving, why not put the difference towards an investment or something that will earn you money?

Don't Get Into 'Bad Debt'

Surely all debt is bad right?

Not necessarily.

Certain kinds of debt can actually increase your income, when the money borrowed is put towards investments or business assets.

For example, borrowing money to purchase a rental property gives you an income every month that should be greater than the mortgage interest.

Any kind of debt that doesn't put more money into your pocket is called a liability, or 'bad debt'.

Examples of liabilities include:

  • A new mobile phone that you pay off monthly

  • Credit card spending with interest

  • A car on finance

Have Multiple Streams of Income

The rich stay rich because they don't 'put all their eggs in one basket' - they have more than one source of income.

In fact, they often apply the 'multiple streams' philosophy to all aspects of their business.

If one income stream fails, you can fall back on another. If that one fails, another one will take its place.

I'm currently working on 5 sources of income:

  • My e-commerce business (split over Amazon and eBay)

  • This personal finance blog

  • I'm a part-time proofreader and copyeditor

  • A small portfolio of cryptocurrency

  • A small portfolio of stocks

I recommend eToro as a platform for buying stocks.

Related Post: 16 Side Hustle Ideas for Full-Time Workers

Mind Your Own Business

This is a phrase that is used throughout the book 'Rich Dad Poor Dad' in which Robert Kiyosaki explains the importance of running your own businesses.

When you work for a company, you are working to make someone else rich.

It's very difficult to become rich when you rely on a salary or get paid by the hour.

There are only so many hours in a day, and so there is a definite limit on how much you can earn.

With your own business, there is no limit on what you can earn.

Buy Rich Dad Poor Dad on Amazon

Use Leverage

How can you grow your business and earn an unlimited amount of money?

You have to use leverage.

As said before, there are only so many hours in a day, only so many jobs you can do by yourself.

Leverage allows you to achieve more, with less.

For example, you can purchase a rental property with just 25% of the purchase price. You benefit from the capital growth and rental income of a whole house, while only paying a quarter of the price for it. A mortgage is a form of financial leverage.

Other examples include:

  • Hiring an employee (you benefit from twice the output, for a smaller portion of the profit)

  • Outsource to third party companies

Rob Moore has a great book called Life Leverage. Get it here on Amazon

Outsource Tasks

You might think that you can save money by doing all of your business tasks yourself, but it's usually not the case.

Sometimes you just have to admit that somebody else might be more efficient at it than you.

When you realise this and learn to outsource, you will free up more of your time to work on income-generating tasks.

Some of the tasks your business could outsource:

  • Bookkeeping / Accounting

  • Administration

  • Customer Services

  • Marketing

Look for Passive Income

Passive income allows you to earn money while you sleep.

You cannot possibly hope to build wealth while your income is tied to your working hours. This is called active income.

With active income, you work once and get paid once. For example, a job where you are paid per hour. 1 hour = 1 pay.

With passive income, you work once and get paid many times, if not indefinitely.

If you decide to take the day off, it doesn't matter. You still earn money regardless.

This frees up time to work on your next source of passive income, while still getting paid from the last.

This is truly the key to long-term success.

Examples of passive income include:

  • Creating an income-generating website

  • Creating a digital product to sell, such as an ebook or a course

  • Purchasing a rental property or other investment

  • Starting a business that you plan to outsource and leverage

The less time you have to put in to maintain the same level of income, the more passive it is.

Here is a list of 26 Passive Income Ideas

Habits that will make you rich: passive income ideas

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