Ever wondered how the other half lives? Of course you have — that’s why reality TV was invented. We all have an insatiable curiosity when it comes to the lives of the rich and famous.
But more important than learning what a Beverly Hills housewife eats for breakfast, we want to know what are the habits of rich people that helps them become successful and wealthy.
Today, I'm breaking down 10 habits of rich people that you can — and should — implement in your own life.
1) They have hobbies
In college, Steve Jobs audited a calligraphy course. Later, this helped him build beautiful typography into the Mac, but at the time, he had no big plans for how calligraphy would play into his life; he was simply exploring an art form that interested him.
Millionaires aren’t obsessed with money – they make time to enjoy life and know that inspiration often strikes when you’re being creative – leading to new ideas and opportunities to create wealth. It’s important to give yourself time to play and relax. Imagination is a muscle; work out it and be surprised and delighted by how it serves you.
2) They take on side hustles
Think that juggling multiple jobs is just for poor people? Wrong.
Most millionaires have multiple streams of income; they don’t have all their eggs in just one basket.
That’s partially because millionaires tend to be curious and enjoy trying different things. But it’s also because they’re always looking for new opportunities. Earning an income with a side job is the path of least resistance for reaching financial independence.
3) They spend money sparingly and intentionally
We tend to think millionaires as they’re portrayed in movies — wearing all-white outfits, cardigans around their necks, placing lavish bets at golf, casually dropping money on a fleet of yachts — but that couldn’t be further from the truth.
Millionaires are rabid savers. They understand the value of a dollar and they think carefully about their spending decisions. They don’t waste money on things that they won’t use or don’t add value to their lives.
Often people who look like they are rich really aren’t. And people who have amassed wealth — well, you could be sitting right beside them and have no idea because they don’t have extravagant tastes or throw their money in you face, which brings me to number 4:
4) They don’t splurge (often)
Reality show stars and Instagram influencers have warped our picture of how wealthy people live. We often think that they live in giant mansions on grassy cliffsides above the beach, wear haute couture clothing, and drive flashy sports cars.
But the truth is, most millionaires don’t live like Batman. If you passed most millionaires on the street — or even went to their house — you would have no idea they were rich.
Again, they don’t waste their money. Most millionaires don’t buy a $10,000 Rolex when a $100 watch tells time just as well. They value practicality over flashiness.
5) They prioritize four relationships
We always emphasize the importance of a supportive community. But Chris Hogan, an author who studied the life and habits of more than 10,000 millionaires, found that all have one thing in common. They always have four key relationships in their life: a coach, a mentor, a cheerleader, and a friend.
- A coach is someone who stands on the sidelines and challenges you to make progress. When you fall down, this is the person telling you to get back up.
- A mentor is someone who has done what you want to do. They’re on the same journey as you, just a few miles ahead. They can tell you stories about their failures and how they overcame them.
- A cheerleader is someone who believes in you and encourages you, no matter what. For an aspiring millionaire, the best cheerleader is a person who already crossed the seven-figure mark.
- A friend is…well, a friend is someone who reminds you that life is about more than building wealth. They keep you grounded and make life more fun and vibrant.
6) They build passive income
And of course, rich people earn money in their sleep. Or while they’re practicing calligraphy or doing whatever they want.
They don’t just put their money in a savings account; they make sure that their money works for them.
If you want to learn more about how to build wealth like millionaires, you should check out our free class, Think Like an Investor, where we explain the principles of successful investing.
7) They invest in themselves
Millionaires don’t just invest in stocks and real estate — they invest in themselves. They prioritize personal growth and development.
Research shows that millionaires spend more than 5 hours a week reading for pleasure and nearly six hours a week exercising, while the average American spends two hours and two-and-a-half hours on those activities respectively.
Success isn’t just about what you do; it’s about who you are. It’s important to not only follow the external habits of rich people, but to become the kind of person who is rich. Wealth-building is closely linked to identity; in addition to investing and saving, focus on becoming a better person.
8) They push through failure
Nothing good comes easily. Every successful person has had to push through rejection and failure.
Warner Brothers didn’t think there would be any future for movies with sound. When Fred Smith proposed an idea for overnight delivery to his Yale professor, the professor gave the idea a C. (Smith went on to found FedEx.)
Atari and HP rejected Steve Jobs’ and Steve Wozniak’s personal computer, wondering why anyone would want a computer in their home. (I'm going to assume you're reading this on a personal computer of smartphone.)
There are thousands of stories like that, where people well-respected in their fields turned down an innovative — and eventually hugely successful — idea.
Innovators become millionaires by bouncing back from rejection and failure. In fact, most successful people will tell you that if you don’t have a trail of failures, you aren’t aiming big enough.
So, if you’re in debt or have a long road ahead on your journey to financial wellness, don’t be discouraged — keep pressing on.
9) They ask for feedback
Everything can be improved. Millionaires know that. They’re dedicated to continuous learning and improvement.
They deliberately seek out feedback on how they can improve themselves, their products, and their business operations. They absorb constructive criticism and use it to become better and more successful.
Is this something you do in your own life? How often do you ask people how you can improve?
10) They think about the future
All of our short-term goals should align with our long-term vision. Regularly set aside time to think about where you want to go in the future. Think about what you want to change, what you want to stay the same, and what you want to get rid of completely.
Were you surprised by any of these habits of rich people? Leave a comment and tell me what has or hasn’t surprised you.