The 7 Money Habits of the Rich

The 7 Money Habits of the Rich

Identifying self-made millionaires and billionaires from normal people isn’t just about their bank account size but their way of life—specifically, their habits. There’s something distinctive about their approach to money, business, careers, and life that gives them the edge to compound their wealth over time. In this article, I will share what I learned from my journey to becoming a millionaire and the seven notable financial habits of the rich that I have seen repeatedly during my study of them over the past 30 years.

Seven Habits of the Wealthy

  1. The rich focus on long-term financial goals.
  2. They have specific business and investing goals and stay committed to them. 
  3. The rich use leverage.
  4. The rich use exponential growth in business and investing. 
  5. The rich have multiple streams of income. 
  6. The rich invest in cash-flowing assets. 
  7. The rich are life-long learners. 

1. The rich focus on long-term financial goals

People who’ve built significant wealth didn’t do it overnight. Their secret? Long-term financial planning. They tend not to get swept up in get-rich-quick schemes, but they’re masters at playing the long game. Their focus is on where they want to be financially in 10, 20, or even 30 years, and they have the discipline to make decisions today that will positively impact their financial future. This is in contrast to the average person with the bad habit of just thinking in the short-term of using their paycheck to pay their monthly bills with little to no planning for the future.

2. They have specific business and investing goals and stay committed to them

Successful entrepreneurs understand the power of clear, specific goals. Whether expanding into new markets, launching a new product, or improving customer satisfaction, the prosperous are relentlessly pursuing their objectives. Their unwavering commitment to their business goals helps to drive their success, often enabling them to create incredible value and wealth.

The self-made rich also know how to invest their capital, have goals for their investment strategy, and regularly put away capital into their portfolio. They have the habit of systematic investing. Both of these habits contrast with ordinary people who choose to be employees of companies and not start a company or build an investment portfolio.

3. The rich use leverage

Wealthy individuals understand the power of leverage—using other people’s time, expertise, or capital to grow their wealth. They are not scared to borrow for investments that will bring profits. They believe in using debt leverage to acquire assets and build businesses. They aren’t afraid of using the power of other people’s money to speed up the process of building businesses and assets.

They will also free up the valuable resource of their time by using the leverage of hiring professionals or workers who can do a job better and quicker. In essence, they know the value of their time and are not afraid to spend money to free up their time for tasks in their business that only they can perform. Most people are limited to no leverage; they can only monetize their effort and time.

4. The rich use exponential growth in business and investing

One might consider the rich to be like gardeners—they plant seeds (capital) and nurture them over time. And as these seeds grow, they often multiply, creating a cycle of exponential growth. They are always looking for opportunities to provide this kind of growth, whether in their business or investment portfolio.

When accumulating substantial wealth, the prosperous employ a strategy best described as “planting financial seeds.” This refers to putting their capital—no matter how small or large—into businesses or investments with the potential for exponential growth. This means they’re looking for opportunities where the return is not merely linear (i.e., the input and output grow at the same rate) but where the potential returns multiply over time.

In business, exponential growth might come from a new venture or a start-up. It may not generate much profit in the initial stages, but as the business scales up and its market share increases, the profits could grow exponentially over time. Take, for instance, the tech titans of Silicon Valley. Many of these successful entrepreneurs started with a small venture, which, due to its scalability, turned into a multi-billion dollar company over time.

In investing, exponential growth comes from the power of compounding; a concept famously described as the “eighth wonder of the world” by Albert Einstein. When the rich invest their money, they don’t just aim for a one-off return. Instead, they reinvest their returns, leading to profits generating more profits. Over an extended period, this can lead to an exponential increase in the value of their initial investment. Compound interest is particularly effective in the stock market, real estate investments, or mutual funds, where reinvesting dividends or interest can lead to substantial growth over time. Exponential growth is when you reinvest all profits into a business to grow it in size and scope.

By leveraging exponential growth in their business ventures and investments, the wealthy make their money work for them, often leading to substantial wealth accumulation and potentially reaching millionaire or even billionaire status. Most people limit their growth to their careers and skills.

5. The rich have multiple streams of income

Relying on a single income source is risky, a risk the rich aren’t willing to take. Instead, they focus on creating diverse income streams. This could be through running a business, being a consultant, or being a paid speaker. This approach ensures that if one income stream takes a hit, there are others to fall back on. The rich actively work on achieving more than one source of income. The rich produce multiple income streams through their talents, experience, and skills. Most people have one income stream, selling their time for a paycheck.

6. The rich invest in cash-flowing assets

The rich also love cash-flowing assets like intellectual property, royalties, owning dividend-paying stocks, owning rental properties, and digital assets like websites or YouTube channels. Cash-flowing assets pay you to own them and can be primarily passive income once the initial work to build or buy them is done. People who accumulate wealth typically do not keep their money stagnant. The rich love acquiring and building assets that generate a steady cash flow. This habit of investing or creating income-producing assets enables them to increase their wealth over time, most of the time achieving financial freedom. Most people are the cash-flowing asset of their employer and the companies they repeatedly buy products and subscriptions from.

7. The rich are life-long learners

Learning doesn’t stop for the rich once they’ve made their money. On the contrary, they understand that to maintain and grow their wealth, they must continuously learn and adapt. They stay updated with market trends, invest in learning new skills, and never shy away from seeking expert advice. Their commitment to ongoing education is a significant factor in their financial success. For most people, their education ended when they left school.

Key Takeaways

  • The rich concentrate on future financial stability rather than immediate gratification.
  • They pursue clear, well-defined business and investment objectives and remain unwavering.
  • Prosperous individuals aren’t hesitant to use leverage, saving their time and efforts for high-value tasks.
  • They harness the potential of exponential growth in both their business and investments.
  • Diversification of income streams helps them mitigate financial risks.
  • Investing in cash-generating assets is a prevalent practice among the wealthy.
  • Continuous learning and adaptation are integral to their sustained financial success.


The wealth of affluent individuals isn’t a coincidence or a result of sheer luck. Their particular set of financial habits places them in their unique position. A focus on future financial success, the unyielding pursuit of specific business goals, skillful use of leverage, and an eye for exponential growth are cornerstones of their strategy. They mitigate risks with diversified income streams and continuously invest in assets that provide cash flow. Ultimately, their commitment to lifelong learning ensures they stay ahead, making necessary adjustments as markets evolve. These seven habits reflect the strategic, disciplined, and proactive approach to wealth accumulation that characterizes the rich.