Before I became a full-time blogger, I spent just over three years working as a financial analyst at a small valuation and investment banking firm. We handled mergers and acquisitions, business valuations, estate and gift tax matters, and more.
Because of the nature of our work, many of our clients were extremely wealthy.
Very wealthy.
I met young heirs with millions, successful entrepreneurs, and even one very famous celebrity.
The majority of our clients were, again, very wealthy—far wealthier than I could imagine at the time.
Back then I was fresh out of college and struggling financially. I lived paycheck to paycheck while serving clients who had millions—it was an eye-opening experience.
I had never really encountered that level of wealth before this job. Honestly, I used to think those people didn’t really exist, or at least that I would never meet them.
But I met them regularly, and to my surprise, many of them were very ordinary in their daily lives.
Quick note: The book The Millionaire Next Door is a great read if you’re interested in this topic.
Of course, there are stories about rich people who spend irresponsibly and end up in financial trouble. But the typical millionaire is often prudent with money and surprisingly simple in lifestyle. More importantly, they know how to manage their finances.
The reality is far different from the flashy, exaggerated lifestyles you see on social media.
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If you doubt how “normal” the wealthy can be, here are a few examples of frugal habits practiced by very rich people:
- Warren Buffett still lives in the modest house he bought in 1958 for around $30,000.
- Mark Zuckerberg has been known to drive an Acura.
- John Caudwell (worth billions) rides his bike 14 miles to work every day and even cuts his own hair.
- Jim C. Walton, son of Walmart’s founder, reportedly drives an old truck without air conditioning.
I’ve met retirees who have millions yet choose to live in an RV. RV life can be fun, but people often assume RVers don’t have money—sometimes the opposite is true. We became friends with one RVer who owns a nice house and has substantial savings, yet lives in an RV worth less than $20,000. You would never guess.
If your goal is to become wealthy—however you define that—read on to learn the money habits that help the successful preserve and grow their wealth.
They know the value of time.
One memorable client employed an assistant solely to pay bills—someone whose daily job was to remember and pay recurring expenses like utilities. At the time, it seemed extravagant to me; I was struggling to manage my own bills. But that client never missed payments and didn’t waste time on administrative chores they found tedious.
Outsourcing routine tasks frees up time for higher-value activities. Wealthy people understand that their time is valuable and use it strategically. Even if you’re not wealthy, you can adopt this habit: automate bills, schedule due dates, or delegate low-value tasks so you avoid late fees and free time for priorities that grow your income or improve your life.
They wear the same outfits.
Many affluent people simplify their wardrobes and avoid extravagant clothing expenses. They often look “normal” and don’t feel the need to impress with flashy items. Several successful figures—Mark Zuckerberg, the late Steve Jobs, and even Albert Einstein—were known for limited, repeatable outfits. Barack Obama once said he wore only gray or blue suits to reduce decision fatigue.
The average family spends about $1,700 per year on clothing, and many people waste 10–30 minutes a day deciding what to wear. Fewer options can save money and time. Try narrowing your wardrobe to a few versatile, well-loved pieces that mix and match for different situations.
They have more than one source of income.
Wealthy individuals typically diversify income streams: a primary job, business ownership, rental income, dividends, and more. Multiple income sources reduce risk and increase financial resilience. If you want to mirror this habit, explore side businesses, freelance work, passive income like rentals or investments, or other monetizable skills.
They have long-term goals.
Millionaires and successful people are goal-oriented, especially with long-term objectives. Goals provide direction and motivation; without them, it’s hard to measure progress. Research shows that people who explicitly state resolutions are far more likely to reach goals than those who don’t. Start with simple resolutions, annual goals, or a vision board, and track progress consistently.
They have a budget.
Yes, even wealthy people pay attention to budgets. They may not always use a traditional line-item budget, but they monitor cash flow and know where money goes. Tracking spending—whether by pen and paper, a spreadsheet, or an app—reveals waste and highlights areas for improvement, helping you meet financial goals.
They educate themselves on financial matters.
When the wealthy face unfamiliar financial decisions, they either consult professionals or educate themselves. They read books, attend seminars, follow financial news, and continually learn. Reading trustworthy blogs and books, checking out library resources, or taking online courses are practical ways to adopt this habit.
They realize the value of experts.
Alongside self-education, many wealthy people know when to hire experts—accountants, lawyers, financial advisors—who help navigate complex tax rules, investment strategies, or legal issues. Using expert help can prevent costly mistakes and save time. If hiring professionals isn’t feasible, consider small services that simplify life, like meal planning or automated tools that reduce stress and free up time.
They don’t fall for lifestyle inflation.
Many wealthy people live below their means. They often buy used items, drive modest cars, and avoid trying to “keep up with the Joneses.” By resisting lifestyle inflation—spending more as income rises—they preserve capital and build wealth. Consider the long-term value of purchases and pause before buying the latest gadget or car to avoid impulse-driven expenses.
Some sobering statistics: a large share of people live paycheck to paycheck, many lack emergency savings, and the average household carries thousands in credit card debt. Avoiding lifestyle inflation helps protect you from these risks.
They still use coupons and haggle.
Surprisingly, many high-income households use coupons and negotiate prices. Saving on routine purchases adds up over time. Use coupon apps, check local papers, and don’t be shy about asking for a better deal where appropriate.
They invest.
The wealthy make their money work for them through investing. Many avoid speculative “get rich quick” schemes and instead hold diversified portfolios with broad-based funds. Investing compounds wealth over time—money left idle loses purchasing power, while invested money can grow substantially.
For example, $1,000 invested with an 8% annual return for 40 years becomes roughly $21,724. If you contribute $1,000 each year for 40 years at the same return, the value grows to about $301,505. Larger initial investments and regular contributions magnify these effects further.
Adopting even a few of these habits—valuing your time, budgeting, learning about finance, investing, and avoiding lifestyle inflation—can move you closer to financial stability and long-term wealth.
What other successful or wealthy habits am I missing? Share your ideas in the comments below.