Wealthy Lifestyle: What Wealthy People Do Differently Than Everyone Else
8.4 MIN READ
Anyone can live a wealthy lifestyle; it just takes adopting millionaire habits. It's not as hard as it seems, and many millionaire lifestyle habits might surprise you.
Related Article | The Finance Dictionary: Learn the jargon your Finance friends speak!
What Is a Wealthy Lifestyle?
A wealthy lifestyle lets you make the most of your hard-earned money. In addition, wealthy people often reach a level of financial security, or independence, meaning they don't have to work to cover their bills.
It might surprise you that a wealthy lifestyle doesn't mean spending money, driving luxury cars, or having extravagant living expenses. Instead, a wealthy lifestyle is consistent, intentional, and personal.
Defining a Wealthy Person
Chances are you wouldn't be able to tell a wealthy person from an average person walking down the street. They don't have any telltale signs that make everyone know they have a lot of money.
Instead, a wealthy person has good money habits, understands how to save money, and doesn't act like they are the richest person in the world. Instead, wealthy people remain level-headed, think about their spending before doing it, and invest as much as possible.
Habits of a Wealthy Lifestyle
Do you want to live like a wealthy person? Maybe you want to be one of the self-made millionaires that can retire early and live off their investments. Whatever your goals may be, here are the habits of the wealthy.
1. Continued Growth and Learning
Wealthy people never stop spending time learning. Graduating college and working a successful career doesn't mean you stop learning. Even Warren Buffett, one of the wealthiest people in the world, constantly learns.
Experts say you need 10,000 hours to become an expert at something. Imagine what you could accomplish if you continued learning, whether at your job, a new job, or in investing.
2. Failure Resilience
Failure doesn't define who you are, but if you use it to better yourself, it can be helpful. Some of the world's most successful people faced many failures before reaching success. Take Michael Jordan, for example. He was cut from his middle school basketball team, but he didn't let that stop him. Instead, he kept learning and growing from his failures, and we all know how successful he became.
Related Article | Differences Between Old vs New Money
3. Practicing Consistency
To build wealth, you must be consistent in your effort. It doesn't happen overnight. It might not even happen in a few years. You can be as steadfast, intentional, and hard-working as you want, but if you don't keep up those habits, you won't be one of the world's self-made millionaires.
4. Work More, Sleep Less
If your body can handle it, consider working more and sleeping less. Some people have the ability to run on three or four hours of sleep a night. If you use those extra hours productively, you have almost half of a workday extra to achieve more.
Don't work to the point of exhaustion, or you'll make poor life decisions and may even lose money instead of making it. Only do what you know your body and mind can handle.
5. Extreme Organization
If you want to build wealth, organization is key. But, of course, this doesn't just mean you must organize your finances; every area of your life should be tidy.
Get rid of physical, virtual, and mental clutter. For example, make it easy to think in the rooms you spend time in, and always have your belongings where they need to be so you can make a quick exit without feeling stressed or showing up late.
6. Ask For Forgiveness, Not Permission
Don't be afraid to take risks. When you wonder how do people get rich, it's because they take risks. If you want a higher net worth, you have to be willing to risk it.
This doesn't just mean increasing your risk tolerance in investments. It means taking risks in life and at your job. If you see a loophole or a way to manipulate the system so you can make more money or improve your lifestyle, do it, and ask for permission later when you're caught and have to explain yourself. If you're doing something to better the company, you might get a chance to be the highest-paid leader.
7. Rolling Up Your Sleeves
Climbing the ladder requires you to get in the trenches with everyone else. You can't be a leader if you don't know how everything underneath works.
Most people have to work their way to leadership, and when you have the mindset that nothing is beneath you and your capabilities, you'll increase your earnings faster. Not only will you rub elbows with all the right people on the way up, but you'll make friends with those you'll lead one day, creating a sense of camaraderie that's important if you want to become rich.
8. Separate Business and Personal
Business and pleasure don't mix. Even if you do business with friends, they aren't your friends when doing business.
You must separate business and personal relationships and not take offense in either situation. As you look at the things rich people do, you'll notice that they don't worry about who they like or dislike when making money. Instead, they focus on their efforts to earn the money they need to reach their financial goals.
9. Living Frugally and Within Their Means
There isn't a rule that states you must spend as much as you make. You can be rich without living a rich people lifestyle. For example, you don't need housing costs or car payments so high that they take up your entire income.
Instead, try living below your means. Spend much less than you make, and even be frugal; that's how people get rich. It's not about how your material possessions compare to others; it's how much money is in your checking account and investments that matter.
Related Article | 16 Top Money Mistakes and How to Fix Them
10. Throwing Budgets Out the Window
The richest people don't budget. Why? Because they don't need to.
Rich people spending habits are nothing like the spending habits of everyone else. Most of the richest people are also the most frugal. They don't have to worry about a budget because they don't overspend. Instead, they live a moderate lifestyle to have millions of dollars in net worth.
Millionaires save money because they know they need more money than they earn. So they save money to make their money grow for them, so they don't have to work so hard.
When you look at rich people habits, you'll see that they don't spend every penny they make. You aren't a rich person if you make $300,000 and spend $300,000. To live rich people lifestyles, you must save every penny you can, making your savings rate much higher than your spending rate. You can't forget paying taxes, retirement benefits, as well as regular debts and bills.
12. Hustling on the Side
The average millionaire has seven income streams, and a few are often side hustles. You don't have to have all active side hustles; you can have passive income too. The key is to have other income to increase your savings faster and have more money than you could earn by working your 9 to 5 job.
One of the habits of rich people that you'll find in almost any millionaire is that they invest. They make their money work for them, so they don't have to work so hard to reach financial independence. So why not take advantage of high-interest rates, compounded earnings, and company growth by investing in stocks, ETFs, bonds, and other commodities?
14. Real Estate
As you wonder how do most people get rich, you'll see a pattern. Most rich people have real estate investments. They might invest in residential or commercial properties. Even if they don't own the properties themselves because they don't want the responsibility, they'll own REITs, stocks, or ETFs in real estate companies.
15. Deep Thinking
One of the habits of wealthy people that might surprise you is that they think a lot.
Rich people get up early and give themselves time alone to think. It might only be 15 minutes a day, but it's 15 quiet minutes to brainstorm, make decisions, and find ways to make more money.
16. Intentional Consciousness
Wealthy people also are very conscientious. They think about every decision before jumping in head first. As a result, they don't make impulsive decisions. Instead, they take responsibility for every decision and action they take.
Related Article | Talking Money With Your Spouse: Helpful and Productive Ways
17. Stray From the Crowd
If you want to know what rich people do, they don't do what others do. In other words, they don't keep up with the Joneses. Instead, they make decisions for themselves and no one else. They don't care that their best friend bought a luxury car or lives in a mansion. Instead, they do what they feel is right to help them reach their financial goals.
Four Key Relationships for a Wealthy Lifestyle
There's one thing that all wealthy lifestyles have in common: who they spend time with daily.
Wealth isn't built overnight or alone. It takes a village, and within that village are the following people:
- Coach - A coach gives you the play-by-play to help you reach your goals. He doesn't tell you what to do but guides you to the decisions that will lead to the life you want.
- Mentor - A mentor is someone who achieved what you want and will help you learn the habits of millionaires that will get you there too.
- Cheerleader - A cheerleader is someone on the sidelines cheering you on even when it feels impossible to reach your goals.
- Friend - A friend is someone who will listen to the good and bad. They won't judge, and they won't give advice. They'll hold space for you as you figure out your next move.
A Wealthy Lifestyle- Final Thoughts
If you want to live a wealthy lifestyle, it starts with living a frugal, conscious, consistent, and organized life. Of course, you won't create immense wealth overnight, but with the right habits, you can reach them much sooner than you think.