Becoming rich can be an aspirational notion that might appear out of one’s reach; however, the good news is that this is not the case.
Sustaining wealth over the course of your life can be attributed to forming and keeping a collection of habits that will ensure you remain laser-focused on looking after your money, and adopting the right qualities and mindset that can lead you to accumulating wealth and even becoming a self-made millionaire.
This article covers the top 25 habits that make you rich by helping you to build a robust financial future and realize your professional and wealth-building potential.
1. Live below your means
Spending less than you earn is a great way to become rich. Not only does this mean that you’re in a prime position to save money every payday, but you’ll also be less likely to take on debt, which will result in you paying more in interest payments.
Creating a budget, being disciplined with your money and implementing savings goals are all good ways to form a habit of living within your means.
2. Invest wisely
Adopt a long-term approach to investing by leaving money or assets invested for at least five years. This allows your investment to grow steadily over time, meaning you can enjoy the benefits of compound interest, where your investment might grow exponentially.
Short-term investments might seem more attractive, but they come with much higher volatility or risk if you choose this path.
3. Set goals
Setting budget or spending goals directly impacts your wealth. Additionally, setting SMART work goals means that you’ll be more effective professionally, which can lead to better career opportunities.
Setting personal goals like planning a holiday or even a wedding can help you budget for it as well as keep you motivated, organized and happy — all of which can support you in becoming rich.
4. Take calculated risks
Taking informed risks can lead you to becoming wealthy. Few successful people get where they are without taking some form of chance with their finances, ideas or positions.
Ensure you research the risks you’re planning to take, carefully reading up on the pros and cons. When taking financial risks, it pays to hedge your bets and not go all-in at once, and to adopt a mixture of high and low-risk options that become less risky as your retirement age draws near.
5. Eat healthily
A habit of healthy eating might not seem the most obvious way to become rich, but it can certainly help. By eating healthily, you might save money on medical bills, as well as not spending extra cash on snacks or fatty or more extravagant meals.
You’ll also benefit from higher energy levels and alertness, contributing to better work performance. You might also save money from lower health insurance premiums.
6. Be frugal
Frugality is a great habit to have. By only spending money when you really have to, and seeking ways to fix or repair things rather than buying new items, as well as not wasting food, you can find that these small gains can create lots of savings over time.
Adopt a mindset of consciously assessing whether each purchase you make is essential or not, and when the time comes to buy something, shop around for the best price.
7. Avoid toxic people
Instead of toxic people, take care to surround yourself with positive personalities and ones that are allied to you and support what you do. This way, you’ll benefit from honest, well-intentioned and valuable advice.
Positive people can help you grow your career, add to your network and provide you with resources, all valuable contributors to your long-term wealth. Pay this positivity forward to other people.
8. Volunteer
Volunteering is a great way to become rich. By supporting the community, you gain valuable work experience and a decent community profile, thereby increasing your networking opportunities that can lead to career growth by leveraging the people you know.
You can also use your learnings to upskill yourself and develop your career effectively. This can lead to better job opportunities and higher salaries.
9. Develop multiple income streams
Having more than one income stream is a great habit that can make you rich. You might consider taking on a side hustle or two, or even two part-time jobs, as well as looking for passive income.
Doing this might take extra effort, but you’ll have greater protection from job loss and can even devote one of your income streams to pure investment or covering day-to-day expenses.
10. Network and build relationships
Fictional tycoon Gordon Gekko famously said: “The most valuable commodity I know of is information”. And cultivating an effective network will provide you with plenty of this.
Effectively networking with others provides you with plenty of people who can support you, give you advice, mentor you and provide you with help when you need it. You can tap into your network to create opportunities to indirectly drive your wealth upwards
11. Avoid debt
Avoiding debt is a great way to get rich. This is because you spend less paying interest on debt and will have access to more wealth through a better credit rating, meaning you can get more favorable mortgage and loan terms when you need them.
Avoid debt by living within your means, promptly paying off any debt you have, and avoiding higher interest debt options like payday loans.
12. Create an emergency fund
Saving up an emergency fund can be done by setting aside a small percentage of your income each payday. This fund serves as a buffer that you can rely on in case you lose your job or fall ill and cannot work. You can also keep this fund invested so it earns interest while it’s not being used.
As a guideline, save up at least three months’ worth of pay for an emergency fund. By having this on hand, you can become richer by not relying on other savings or credit to support you when times are tough.
13. Avoid watching TV
Avoiding TV is a smart habit that can make you more productive, alert and active — all great traits when it comes to performing at your best and making money. Additionally, avoiding TV might also reduce your susceptibility to spending money from seeing adverts or product placements.
The best way to avoid watching TV is to simply not have one! Alternatively, find hobbies and pastimes that get you out of the house and keeping busy.
14. Read and educate yourself
Reading is a great habit that can make you rich. You’ll learn new things and develop improved qualities as a result of what you read, which can translate into boosting your earning power through new actions and enhanced knowledge.
Reading can also pique your interest to take training courses and learn to boost your résumé. You might also choose to focus on reading books that focus on getting rich or financial management.
15. Embrace continuous learning
Embracing continuous learning as a habit is one of the most powerful ways to get rich. By actively seeking out new learning opportunities, you’re opening yourself up to infinite opportunities and new, smarter ways to earn money.
Be curious, and seek out courses and seminars that can further your knowledge of subjects that interest you. Consider flexible lifelong learning strategies that can fit around your other commitments to make this process fun and effortless.
16. Find good mentors
A great mentor can stay with you for life. Like the interest you earn on money over time, their support and expertise are compounding and will become more valuable as life goes on, meaning you’ll benefit from their knowledge and support — making you more successful and richer.
Seek out a mentor from an early age, and work hard on sustaining the relationship, arranging regular catch-ups with them no matter how busy you might be.
17. Start saving money
Saving money as soon as you can means that you can start earning interest on it earlier, and for longer. You’ll also have more time to save up for things, more time to build an emergency fund, have a larger retirement pot, and more time to benefit from compounding interest.
Start saving money easily by putting away a percentage of your pay packet as soon as you earn it to avoid the temptation to spend. Also, consider setting savings goals and using round-up apps.
18. Control your emotions
Letting your emotions run wild can lead to you making bad decisions that might impact your earning ability. You might also find that you spend more money when you’re highly emotional, such as comfort eating or going on shopping sprees.
Control your emotions through mindfulness exercises such as yoga or deep breathing. Plan and prepare for situations where you know your emotions get elevated to help you keep things in check.
19. Wake up early
We’re statistically more productive early in the morning. This is when our brain is rested, our motivation is higher and our mood is better. Those who get up early and seize the day are, therefore, more likely to develop successful behaviors that can lead to earning more money.
Get into a money-making habit of waking up early by going to bed early and ensuring you get a good night’s sleep. Develop a routine that makes waking up early the norm, not the exception.
20. Exercise
Even simple desk exercises can help your body release endorphins that boost your mood and productivity, keeping you motivated and yearning to aim higher. You’ll be able to leverage this to work harder, get better jobs and earn more money along the way.
Exercise will also keep you healthy, meaning that you can save money through fewer medical bills. You can also use exercise to directly save money; for example, by cycling to work instead of taking the train.
21. Practice gratitude
An attitude of gratitude is a great habit to become rich. By being grateful, you’ll become happier through a positive mindset and better mood, which you can leverage for your financial advantage.
Practicing gratitude can also help you develop stronger relationships, meaning that you can rely on more people for support and assistance. Adopt an attitude of gratitude by committing to saying “thank you” to someone or for something once a day.
22. Manage your time
Being organized and managing your time is a great habit to keep, and one that can lead to you becoming rich. By managing your time, you’re staying productive and in control. This will allow you to focus on the things that matter and to prioritize activities that can directly contribute to creating wealth.
Manage your time by eliminating distractions and establishing daily routines. Find a time management system that works for you.
23. Avoid naps during the day
Naps can be a wonderfully comforting thing, but they have their drawbacks. Napping during the day can create sleep inertia, a feeling of grogginess that can impact productivity. Napping can also affect your ability to get a good night’s sleep, another habit we explored earlier that can make you rich.
Avoid napping during the day by taking shorter, brisker breaks and ensuring you always get a good night’s sleep.
24. Focus on your strengths
We all have specialisms, and focusing on these can be a great way to make yourself rich. By focusing on things that we’re good at, we’ll be motivated to try harder and develop these skills to a higher level. This can make us more employable and more effective, two traits that can boost our earning power.
Begin by investigating what you’re good at and what you like doing. Consider taking career assessments for inspiration.
25. Sleep at least 7 hours a night
A good night’s sleep for a healthy adult starts at around seven hours a night. By making this a habit, you can boost your riches through being productive at work, staying alert and boosting your creative thinking to generate winning ideas.
Get at least seven hours of sleep a night and avoid the temptation to get up earlier than you are naturally ready to by getting to bed on time and researching good sleeping habits.
Final thoughts
Building and sustaining wealth doesn’t happen by accident. It requires the formation and cultivation of money habits that you stick with throughout your life. Some of these habits focus on financial behavior, whereas others focus on mindset and wellbeing discipline that can contribute to you becoming rich.
What ties these financial habits together is making the effort to keep them going, thinking strategically, and having a passion for personal and professional development. Keep these areas in mind, and you can use your great habits to lead you to financial freedom and wealth accumulation.
Can you think of any other habits that can make you rich? Let us know in the comments section below!
This article is a complete update of an earlier version originally published in April 2015.