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40 Smart Things Rich People Do That Keep Them Wealthy

Trista Smith September 20, 2024

Many spend at least half of their lives trying to save up for things they want. They often look at wealthy people and wonder how they got it done. Of course, they’ve put in a lot of long hours, hard work, and learned how to save from early on. Of course, many of these millionaires have access to other resources that have helped them save money over time.

This allows them to make the right financial decisions that have helped their businesses and wallets grow. So how exactly did they meet those goals? Here are the top secrets they’ve employed to help them gain financial success over the years. Check out 40 things rich people do that keep them wealthy.

40. Rich People Don’t Pay for Everything with Credit Cards

When you have a credit card, you tend not to think about money as a tangible thing. Furthermore, that can lead to some dangerous spending if you’re not keeping track of what’s in your account. You may end up living above your means, and you end up in a mountain of credit card debt that you can’t afford to pay off. Instead, you should only spend the cash you have instead of charging purchases to credit cards (via Go Banking Rates). You’ll be a lot more mindful about your money and keep better track of your spending habits (via Go Banking Rates). That way, you know which areas of life you can cut back on.

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39. They Choose The Right Retirement Savings Account

It’s easy to earn many tax benefits when you’re contributing to a 401k in the future. After all, contributions come out of your paycheck before taxes, meaning that you’re ultimately lowering your taxable income. However, when it comes time to withdraw that money in retirement, it will be taxed at your regular income tax rate (via Go Banking Rates). This can be pretty high, even for the wealthiest of taxpayers. Holding stocks and bonds for more than a year will be taxed at the long-term rate, which can end up being less than the income tax rate. So focus on keeping these instead in your retirement savings accounts (via Go Banking Rates).

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38. They Utilize Debt To Its Fullest

People look at debt like it’s a bad thing, but the wealthy make it work for them. They utilize debt to create leverage, primarily by borrowing money at low-interest rates to invest in assets that will provide greater returns (via Forbes). They examine what is and isn’t growing and focus the debt on those assets that have the potential for growth and increase in value (via Forbes). However, this kind of plan requires a lot of insight into the market and its predictions, where it’s going to go in the future so that you can figure out which ones you should funnel your money into.

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37. They Focus On Value Instead Of Cost

You may look at the price tag of something and decide it’s too expensive. Saving money is essential, but there’s a difference between spending money because you can and investing it in the things you should (via Go Banking Rates). By seeing the value in certain things, you may need to pay that high price tag to become more fruitful to you in the future. It’s the value that makes a financial decision worth it or not; it may be affordable, but if it has no value for your life in the long run, it’s better off being without it than throwing money at it (via Go Banking Rates).

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36. They Keep Cars For The Long Haul

Buying a flashy new car now and again may seem like a good idea: it saves you from having to worry about forking out money when your warranty is up. However, keeping a car for as long as its warranty lasts means that you’re always spending money every single month, and that’s not an intelligent way to get rich. Cars do depreciate in value over time, but without car payments, you can save up more money for the long run and use that money towards better investments (via CNBC). If you bought a car with a loan, pay it off as soon as possible and focus on keeping the car long-term so that you have more money for other things (via CNBC).

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35. They Invest In Real Estate And Land

Land and real estate are tangible properties that more people should start investing in. It adds diversity to portfolios and can earn a significant return in financial markets (via Forbes). By increasing assets that generate wealth over time, people can slowly develop their economic interests (via Forbes). More importantly, they can to the point that they can worry less about investments and live off of the money they’ve earned through these financial decisions. All it takes is talking to the right person to figure out how to start investing in real estate, but only if you’re financially able to do so.

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34. They Prioritize Their Health

Healthcare of any kind becomes expensive in the long run, and you only have one body to take care of, so why not invest in it? Take care of your health by exercising regularly and eating out less. Wealthy people are more likely to eat healthier food and get more sleep each day (via Prosperity Thinkers). However, that’s because they can afford to do so. Of course, they have better access to fresh food and have a bigger food budget to work with overall so that they’re taking fewer trips to the doctor. Nevertheless, even just taking care of your health with some exercise a few days a week is a start in the right direction (via Prosperity Thinkers).

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33. They Invest In Themselves

The most successful people spend time investing in themselves to improve their status in life (via Go Banking Rates). Even if it’s something as simple as reading a self-improvement book, educating yourself on the ways to become more successful will give you the leg-up you need in the world. Teaching yourself a marketable skill or learning something like sales training can make all the difference in making your talents more valuable to the world around you. Just don’t spend all of your time and money on learning new skills; you don’t want to end up being a jack-of-all-trades and a master of none (via Go Banking Rates).

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32. They Have Emergency Funds On Hand

Saving up for a rainy day can be nice, but that’s not where your finances should stop. It’s best always to have money saved up to last you at least six months if you’re out of a job and have no other means of attaining money (via CNBC). Focus on developing a solid reserve of cash that you can tap into when an emergency arises (via CNBC). That allows you to keep planning for the future instead of dealing with unexpected finances that are draining your wallet faster than you can fill it. Using this cash will save you from taking out a loan or paying for it with your credit card.

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31. They Surround Themselves with Like-Minded People

Successful people in life tend to have people around them who think as they do (via Prosperity Thinkers). Conflicts of interest don’t work out well for anyone, and it can be difficult to be committed to the same goals when everyone is on a different page. You should be looking for those trying to lift you and motivate you every step of the way, not those who are always trying to tear you down. They’re only going to hinder your self-confidence in the long run (via Prosperity Thinkers).

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30. Wealthy People Plan and Save For The Rest Of Their Lives

How do you know how much you have if you’re not keeping an eye on everything? We’re not suggesting that you religiously check your bank account every hour of the day after you’ve made purchases. However, we are advising that you should roughly know what your expense is and how much you have in your account at least every month (via Forbes). This gives you a basis to work with. That way, you can see where you can save money to plan for the future (via Forbes). Becoming financially successful is a long-term plan, not something that just happens overnight, so it requires a lot of careful planning.

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29. They Don’t Take A Job If There’s No Potential For Growth

Understandably, having a job is more important than the kind of job you have, but these kinds of jobs will not be fruitful in the long run. If there’s no opportunity to climb the ladder in a place of employment, there’s no point in working there (via Go Banking Rates). You’ll quickly lose your drive for work and any passion you have. Don’t allow yourself to get stuck in a place that helps you pay the bills but doesn’t do anything else for you. Look for jobs where there is the potential for growth so that you’re always learning new skills to improve yourself while you’re working there better (via Go Banking Rates).

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28. Rich People Have a Successful Morning Routine

Set yourself up for success by getting up early in the morning (via Prosperity Thinkers). A difficult task to accomplish when your bed feels delightful. However, wealthy people tend to get up at least three hours before they start their workday (via Prosperity Thinkers). And after that, they have time for some meditation and setting their mindset up for success. That way, they have the self-confidence to take on any problem that crosses their path during that day. Give it a try. Maybe not three hours before work, but at least give yourself enough time to set yourself up for success before you head out the door.

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27. They Make Their Money Work For Them

Not everyone wealthy had an affluent background where they were born into wealth. Many wealthy people grew up with nothing but worked extremely hard to get to where they are today. Rich people also make many suitable investments to turn their money over and increase their financial standing over time (via Forbes). They developed passive income sources and avoided debt as much as possible (via Forbes). That is unless they could use the debt to generate more money. In turn, they made their money work for them instead of having to work so hard for money.

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26. Stay Wealthy By Exercising Caution With Risks

You should only consider risks when you can benefit in the end (via Prosperity Thinkers). That means stepping outside of your comfort zone to better yourself or make smarter investments. What you shouldn’t be doing is taking risks that are foolish and not well-researched. Throwing caution to the wind may end up costing you a lot, to the point that you may never be able to recover. Wealthy people focus on putting in the work, creating good habits, and focusing on opportunities instead of get-rich-quick schemes or gambling their money away for that big score (via Prosperity Thinkers).

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25. Rich People Save For A College Fund Early

By kickstarting the college savings early, it means that you won’t be scrambling later in life to try and pull all of the funds together. Starting early means that you’ll get the ball rolling sooner than later. That means that interests will begin to compound and add up quickly instead of having less time to do so (via CNBC). Another benefit to doing it this way is that withdrawals are tax-free when they’re used to pay for college (via CNBC). In turn, that puts more money in your pocket and more money for your kid to use on things that they need while they’re at school.

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24. They Are Disciplined About Budgeting

Many people have a budget but decide to treat themselves now and again by going over budget. When this happens, it can create a bad habit that you’ll start to make more and more often. However, the prosperous develop a very disciplined budget (via Forbes). Furthermore, they stick to it every month to know exactly how to plan for the future. The wealthy follow the 50/30/20 rule (via Forbes). That means spending 50% of funds on needs. You can spend another 30% on wants. Last and most of all, place the remaining 20% into savings for the future.

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23. Rich People Know Where Their Assets Are

As important as asset allocation is, it’s also essential to know where your assets are (via Go Banking Rates). It’s great to have a diverse portfolio of different assets so that you don’t have all of your eggs in one basket. In the same vein, you shouldn’t keep all of your assets in one type of account. Having several accounts can save you from having everything lost and limit the impact of taxes on retirement. Spreading around your assets is much better for you in the long run (via Go Banking Rates).

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22. They Read More

Those who read learn more about the world around them. This goes hand-in-hand with the self-improvement path. Reading provides you with the knowledge you need to make the right decisions to further your future (via Ramsey Solutions). You’re not going to find that knowledge watching the latest reality television show about people eating worms. Focus on reading material that will get you where you want to go (via Ramsey Solutions). Not only will that give you knowledge, but you’ll also gain the motivation to take those first steps towards success too.

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21. They Keep a Close Eye on Interest Rates

You should be looking at making interests work for you, not against you. Interest rates that are too high will slowly drain your bank account, making it more difficult for you to keep money in. You could consider getting consumer credit (via Forbes) However, that can be difficult to do and become very expensive in the long run. Don’t use credit for assets that depreciate over time, as that will only lose you money. Instead, use it for things like real estate so that you can accumulate more money and better interest rates that work for you (via Forbes).

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20. They Use Every Advantage From An Employer

This is more than just matching your employer’s contribution to your 401k. There’s also looking at the benefit plans you’re getting. These include life or disability insurance, any legal services through work, health savings accounts, and stock purchase plans (via CNBC). That way, you have something to invest in and build your portfolio. However, only consider stock purchase plans if you feel good about your company’s stock and whether it’s cost-effective in the long run to invest with them (via CNBC).

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19. They Hire Financial Advisers

Sometimes, not everyone can handle all of their financial matters independently. There are some things you may need help with, which means calling in a professional. Don’t think of it as throwing away money for someone else to give you common-sense ideas; financial advisers know how to help you make your money work for you instead of the other way around (via Go Banking Rates). An adviser can even show you what mistakes you’re making with your money so that you can save more over time (via Go Banking Rates). It doesn’t hurt to give one a call.

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18. They Select the Right Financial Adviser

Doing this item successfully means not going with the first one you find on the internet or the one with the lowest rates. You want a financial adviser who has a good reputation and isn’t in it to just take money from you (via Go Banking Rates). Look for someone who fits within what you can afford and isn’t going to provide you bad advice for money. There are fee-only financial advisers out there, which are much cheaper than those paid by commission (via Go Banking Rates). Do your research to find the right one for you.

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17. They Are Mindful About Spending

Those who want to make money are very careful about keeping an eye on their money. They examine everything they spend money on and try to be mindful of what they can do without (via Forbes). Instead of focusing on going for the biggest and brightest shiny things they see, they focus on experiences that will help them flourish in the future (via Forbes). Investing money into the right things means you can ten-fold returns for the future. Money can’t exactly buy happiness but having it for the future makes it easier to be comfortable so that there’s less to worry about.

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16. they Donate To Charitable Causes

Donating doesn’t only help those in need, but it also provides a big band-aid to your finances. Itemized donations on your tax returns can lead you to take a deduction on your taxes, meaning you can pay less (via Go Banking Rates). As long as you’re donating to a qualified charitable organization, the IRS will allow you a tax write-off; the more you donate, the more you can reduce your taxable income (via Go Banking Rates). That’s probably why you see the wealthy making so many donations to charities every year because it helps them financially as well.

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15. Delayed Gratification

Society has become a new world of instant gratification, where rewards have to be acquired in the here and now for them to be worth it. Temporary pleasures may provide you with happiness at the time, but then it’s gone, and then you have no more money to obtain your real passions in life. Rich people have learned how to sacrifice their need for pleasures to focus on long-term success and goals (via Ramsey Solutions). They understand that the real gratification comes after the hard work so that they can live more comfortably (via Ramsey Solutions).

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14. They Use Autopay For Bills

You should have your bills and any investment payments on autopay whenever possible (via Forbes). Some people consider this a mistake because they can never be sure if they have enough money in their account, but if you’re saving wisely, there should be. It will also do many good things for your credit score. Why? Because it will show that you’re always paying bills on time. It also forces you to use dollar-cost averaging on your investments so that you’re not paying too much or too little (via Forbes). Generally, this will help you to lower your costs over time.

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13. They Don’t Use Money To Impress Others

It may feel good to show off the money you have so that you can garner some attention, but that feeling is temporary and fleeting. People focused on making money don’t care about what other people think and know that they’re not in a race with other people (via Go Banking Rates). Flashing around money and spending it on unnecessary things is a fast way to lose it all because you’re going to constantly be aiming for new ways to make your friends’ jaws drop instead of spending it more wisely.

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12. They Keep Housing Costs Low

Focusing on living in a neighborhood that they can afford makes it easier for people to save more money in the long run (via Business Insider). Living above your means to show off what you have will result in a house that you can’t afford to upkeep for the rest of your life (via Business Insider). That ends up being a drain on your bank account. When looking for a new house, it doesn’t hurt to figure out a price bracket that you want to stay within. A home doesn’t have to be super expensive to appear luxurious.

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11. Rich People Aren’t Afraid To Get Side Hustles

Having a high-paying job can provide you with a healthy income, but there’s nothing wrong with considering other money-making ideas when you’re not at work. It does take some research and patience to figure out whether these ideas will work. Exploring your options will inspire your creativity (via Business Insider). Furthermore, it will also give you a different means of income on the off-chance that you lose your regular job (via Business Insider). You have something to fall back on so that you’re continuing to make money even if you’re not in an office setting.

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10. They Listen To Feedback

Feedback is one of the ways that people can learn to improve themselves (via Business Insider). By understanding what they’re doing wrong, they can make the right decisions for the future. Having thin skin won’t get you through the world. You have to take feedback and put it to good use instead of seeing it as a personal attack on your person. You can only learn to grow and improve through good and bad feedback (via Business Insider). Then you know what’s working and what isn’t.

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9. Rich People Live A Frugal Life

The wealthy know how to cut corners and live as frugal as possible (via Forbes). They practice this kind of lifestyle to the point that it becomes second nature. This helps them save a lot of money in the future to invest more of their income into money-making assets. Over time, this will snowball into more considerable sums of money to the point that they become financially independent. If this means only buying the cheapest groceries they can find to minimize their utility bills every month, then that’s what they can do to get it done (via Forbes). They know it will all pay in the end.

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8. They Avoid Fees When Possible

When you’re always paying fees, you’re losing more money than earning (via Go Banking Rates). That entails paying late fees on credit card payments or overdraft fees on your checking accounts (via Go Banking Rates). These may seem like small sums beforehand, but they add up over time if you’re always paying them every month. Avoid having to pay fees whenever you can by staying abreast of your monetary funds each month so that you can pay for everything that you owe. You want to be keeping as much money as possible, not incurring as much debt as you can.

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7. They Eat Out Less Often

There’s something to be said about going out for a steak to celebrate a big raise. Going out and treating yourself to the small food luxuries that exist in the world will add up in the end. Cut back on eating out as much and focus on keeping food at home that you can make (via Go Banking Rates). Cooking at home is much cheaper for every dollar since you can stretch your food out across many meals. Skip those lattes and put that money towards retirement instead (via Go Banking Rates).

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6. They Teach Themselves About Financial Matters

The only way to take actual control over your money is to know how to use it in the best ways possible. Moreover, that might mean taking a few lessons on making their finances work best for them. Instead of taking financial advice from people they barely know, they teach it to themselves (via Forbes). This gives them the power that they’re looking for to determine what choices work best for them; financial advice may seem sound but remember that financial advisors also have to be paid for their work (via Forbes). By learning it themselves, they skip the middleman. They don’t rely on other people to make decisions for them.

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5. Rich People Look At Opportunities

There will always be problems that need fixing, but not every problem can be solved in the world by you. They should be opportunities where your skills can be put to the test to improve. You shouldn’t be looking for roadblocks that you can fix or focal points for complaints. Look for the opportunities that will provide you with diversified income so that you’re expanding your earnings from different sources (via Prosperity Thinkers). The pandemic was an interesting time for people to look for new ways to earn money, which has made certain areas of the online market explode (via Prosperity Thinkers).

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4. They Plan For Taxes Throughout The Year

Many people always wait until the last minute to start going through their tax documents to see what they owe every year. Instead, the wealthy take the necessary steps to plan throughout the year to reduce the impact of their taxes (via Go Banking Rates). If they know how much they’ll have to pay before it’s due, they can take other steps to reduce that amount. This planning ahead has saved the richest people a lot of money and helps them avoid any tax mistakes that can end up being very costly (via Go Banking Rates). It doesn’t hurt to check in with a financial adviser throughout the year to see how you’re doing financially.

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3. They Go Against Trends

Sure, it can be a safe bet to go with already works. However, there’s nothing wrong with going against the grain now and again. That is, as long as you’ve done some research into your venture before you do. Look at where the potentials are and consider investing in those you believe to be fruitful in the long run (via Go Banking Rates). You might find a niche market that no one else has ventured before, giving you a head start ahead of the rest of your competition. Stop looking at what other people are doing and focus on what you want to accomplish instead (via Go Banking Rates).

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2. Rich People Own Their Results

Take responsibility for your thoughts, actions, and the results produced from your hard work – good or bad (via Prosperity Thinkers). Many people believe that this is just bragging, but there’s no reason you shouldn’t be proud of what you’ve accomplished. In the same light, you shouldn’t blame others when something goes wrong, nor should you care about who gets the credit. Instead, look at what you’ve accomplished and feel pride for what you’ve done. It shouldn’t matter whose name is under the goals in the end, it’s more critical that you accomplished them at all (via Prosperity Thinkers).

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1. Wealthy Folks Have Spending Align With Goals

You should have objectives to focus on so that you’re spending your money in the right place (via Go Banking Rates). Not having a goal means that you have nothing to strive towards. Furthermore, you have nothing to invest in that will make you feel accomplished (via Go Banking Rates). It could be a simple goal as passing on wealth to another generation so that they can live more comfortably than you did. Whatever that goal is, at least you’re not wasting resources on things you don’t care about. By having a target in your sights, you can alter your spending habits so that you can save up for that one thing you want to get out of life.

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