Money Habits of Wealthy People (vs. Popular Expectations)

When it comes to wealthy individuals, the image we have is often one of luxury and extravagance — private jets, expensive watches, and fine dining. But what many people don’t see are the hidden money habits that have helped them amass, preserve, and grow their wealth. Surprisingly, wealthy people have mastered the art of managing their finances in ways that go against common expectations. In this post, we’ll take a look at 20 positive money habits of the rich that may shock you, compared to the typical behaviours we assume they follow.

Money Habits of Wealthy People- Moneydextrous

1. They Live Below Their Means

Expected Behaviour: The wealthy spend lavishly and enjoy the best that life has to offer. The rich always splurge on the best of everything.

Shocking Reality: Most wealthy individuals live below their means. Warren Buffett, worth over $100 billion, still lives in the same modest house in Omaha, Nebraska that he bought in 1958 for $31,500. Buffett once said, “Do not save what is left after spending, but spend what is left after saving.” This simple principle underpins why many wealthy people maintain their fortunes.

2. They Track Every Penny

Expected Behaviour: Rich people don’t need budgets because they have more than enough money. They don’t care about small expenses.

Shocking Reality: Wealthy people often keep a close eye on their finances. Many of them use budgeting tools and apps to ensure they’re tracking their income, investments, and expenditures. They budget rigorously. Even multimillionaires like Kevin O'Leary (Shark Tank investor) follow strict budgets. O'Leary says, “Every single financial transaction should be measured.” This allows them to ensure their wealth grows without waste.

3. They Embrace Frugality

Expected Behaviour: The rich go for the highest-end brands.

Shocking Reality: Frugality is a common habit among the wealthy. Bill Gates is known for wearing a $10 watch, and many affluent individuals look for value over brand names when purchasing goods.

4. They Avoid Consumer Debt

Expected Behaviour: The rich can afford to buy anything on credit.

Shocking Reality: Wealthy people are cautious about taking on high-interest consumer debt. They understand the long-term damage it can do to their finances. Mark Cuban famously said, “If you use a credit card, you don’t want to be rich.” Instead, they avoid bad debt and only borrow for appreciating assets.

5. They’re Relentlessly Focused on Growth

Expected Behaviour: Once you’re rich, there’s no need for further education.

Shocking Reality: Wealthy people are often voracious readers. They are lifelong learners who continuously invest in themselves. They read books, attend seminars, and hire coaches to sharpen their skills and expand their knowledge base. Bill Gates, for instance, reads around 50 books a year. He once said, “Reading is still the main way that I both learn new things and test my understanding.” Constant learning helps them stay ahead in their industries and continue building wealth.

6. They Don’t Flaunt Their Wealth

Expected Behaviour: The rich are flashy and show off their wealth.

Shocking Reality: Many wealthy individuals avoid flaunting their riches. Ingvar Kamprad, the founder of IKEA and one of the richest people in the world, famously flew economy class and furnished his home with his own affordable products. Kamprad said, “If there is such a thing as good leadership, it is to give a good example.”

7. They Drive Used Cars

Expected Behaviour: The rich drive luxury cars like Ferraris and Bentleys.

Shocking Reality: Some of the world’s richest people, including Facebook’s Mark Zuckerberg and Alphabet’s Larry Page, drive modest vehicles. Zuckerberg drives a Honda Fit, a far cry from the supercars people assume billionaires own.

8. They Leverage Multiple Streams of Income

Expected Behaviour: They rely solely on their high salaries.

Shocking Reality: Most wealthy people don’t rely on just one source of income. They diversify through real estate, stocks, businesses, and other ventures, so they are always growing their wealth from multiple avenues.

9. They Are Intentional with Investments

Expected Behaviour: They make impulsive investment decisions.

Shocking Reality: The rich invest cautiously, often with the help of financial advisors. They know that making smart, intentional investment choices in the long run yields greater returns than chasing quick profits.

10. They Pay Themselves First

Expected Behaviour: The rich enjoy whatever money is left over after expenses.

Shocking Reality: Wealthy individuals prioritize paying themselves first. This means setting aside money for savings and investments before spending on anything else. “Financial independence is about having options,” said financial expert Suze Orman, emphasizing the importance of this habit.

11. They Have a High Savings Rate

Expected Behaviour: The rich are carefree because they always have money. 

Shocking Reality: Despite high investment portfolios, many wealthy individuals maintain a high savings rate. They prioritize liquidity for emergencies or new investment opportunities. Having accessible savings is crucial for dealing with unexpected expenses or downturns. Financial advisor Dave Ramsey emphasizes, “Save like your life depends on it, because it does.”

12. They Surround Themselves with Smart People

Expected Behaviour: They socialize primarily with other wealthy individuals.

Shocking Reality: Wealthy people often surround themselves with individuals who inspire and challenge them, regardless of their wealth. They prioritize relationships that promote growth, learning, and mutual support. Wealthy people value the input of experts. They build teams of advisors, accountants, lawyers, and business consultants to help guide their financial decisions.

13. They Focus on Tax Efficiency

Expected Behaviour: The rich don’t care about taxes because they can afford to pay high rates.

Shocking Reality: Wealthy individuals work hard to minimize their tax liability through legal means. They invest in tax-advantaged accounts and seek professional advice to keep their tax bills low. Donald Trump has often spoken about the importance of knowing tax law to keep more of your money.

14. They Create Generational Wealth

Expected Behaviour: The rich are only concerned with their own lives.

Shocking Reality: Wealthy people prioritize estate planning and creating generational wealth. “It’s not just about you. Think about your legacy and how you can impact the lives of future generations,” says Robert Kiyosaki, author of Rich Dad Poor Dad.

15. They Value Time Over Money

Expected Behaviour: Wealthy people are obsessed with accumulating more money.

Shocking Reality: Many wealthy individuals prioritize time over money. For them, time is the ultimate resource. Jeff Bezos has been quoted as saying, “I get up early and go to bed early. I think better, I get more done, I feel better all day.” They delegate tasks and spend time on high-value activities that can help grow their wealth.

16. They Avoid Financial Peer Pressure

Expected Behaviour: The rich compete to outdo each other with material possessions.

Shocking Reality: The wealthy avoid the temptation to compare themselves with others. Instead, they set their own financial goals and stick to them. Author and financial expert Dave Ramsey has said, “You must gain control over your money or the lack of it will forever control you.”

17. They Are Patient Investors

Expected Behaviour: The rich look for quick, high-return investments.

Shocking Reality: Wealthy individuals often take the long view with their investments. Warren Buffett advises, “The stock market is a device for transferring money from the impatient to the patient.” They understand that wealth is built slowly over time.

18. They Value Financial Literacy

Expected Behaviour: The rich rely on financial advisors to handle everything.

Shocking Reality: Although many wealthy individuals work with advisors, they take the time to become financially literate themselves. They understand the basics of personal finance, investing, and tax law so that they can make informed decisions.

19. They Make Charitable Donations

Expected Behaviour: Wealthy people hoard their money.

Shocking Reality: Many wealthy people are deeply committed to philanthropy. Bill Gates and Warren Buffett launched "The Giving Pledge," encouraging billionaires to give away at least half their wealth. Buffett, for instance, plans to give away 99% of his fortune.

20. They Use Leverage (Debt) Strategically

Expected Behaviour: The rich always use their own money for investments.

Shocking Reality: Wealthy people often use other people’s money (leverage) to grow their wealth. Real estate moguls, for example, frequently use loans to purchase properties and maximize their returns.

Conclusion

Wealth isn’t just about how much money you have — it’s about the habits you cultivate. The shocking truth is that many wealthy people live frugally, invest intentionally, and focus on long-term goals, which is a far cry from the lavish lifestyles we often imagine. These habits are what truly build and sustain their wealth. Whether you're just starting your financial journey or well on your way, adopting these money habits can help you achieve your own financial success.

The next time you think about what it takes to be wealthy, remember that it’s not all about big houses, fancy cars, or designer clothes. True wealth is built on smart, disciplined, and often surprisingly simple financial habits.