Some people inherit family money, but many build wealth on their own. Luck can help, but lasting success usually comes from strategies anyone can use.
The wealthy tend to view money differently. Instead of focusing only on spending, they treat money as a tool for ownership, growth and opportunity.
You don’t need to come from wealth to build it yourself. Here are five rules that separate the wealthy from everyone else.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
1. They prioritize ownership over consumption
The rich know the best way to spend money is on things that will grow in value or generate income, not just lose worth over time. Assets build wealth; liabilities drain it. A house, for example, is an asset because homes usually rise in value. A car, on the other hand, is a liability because it starts losing value the moment you drive it off the lot.
Investing in assets can mean the difference between a healthy nest egg and an empty bank account later. That might look like buying a duplex and renting out one unit to help cover your mortgage. Or it could mean contributing to your 401(k) instead of overspending on nights out, so your money earns dividends for decades. It might even mean building a side hustle that can grow into a business.
Consuming time or money may be more fun in the short term, but wealth comes from consistently choosing ownership and long-term growth.
2. They let money work for them
One of the most powerful tools for building wealth is available to everyone — compound interest. It’s the process of earning interest on your principal, reinvesting that interest, and then earning even more interest on the total.
The formula is simple; all it requires is time and consistency. The earlier you start investing, the more your money can grow. For example, setting aside just $50 a month from ages 23 to 28 can grow to $3,450.44 (with a 7% return and annual compounding).
If you then increase your contributions to $300 a month at age 28, you’ll end up with $619,391.51 by age 65. Without those early years, you’d only have $577,214.65 — a difference of more than $42,000.
Starting early doesn’t just give you more money; it helps you build the habit of living below your means. Still, it can be tempting to spend or dip into investments. The wealthy know better — they let their money grow untouched. If you leave a job with a 401(k), for instance, the smart move is rolling it into another retirement account, not cashing it out into a checking account.
Compound interest is one of the biggest secrets of wealth — but it can also work against you. Stay in debt, and you’ll find yourself on the losing side, paying more and more in interest instead of earning it.
3. They play the long game
You’ve probably heard about the marshmallow experiment, a psychological test where children were told they could eat one marshmallow right away or wait and receive two later. The kids who held out showed the power of delayed gratification — trading short-term pleasure for a bigger reward in the future.
Wealth works the same way. The most important ingredient isn’t luck or timing — it’s patience. Money needs time to grow whether through investments, real estate or business ownership. Get-rich-quick schemes promise shortcuts but usually waste both time and money.
The wealthy understand that compounding, appreciation and opportunity all take years to unfold. That’s why they don’t chase fast returns; they stay consistent and let time do the heavy lifting. Patience isn’t just a virtue when it comes to building wealth — it’s a requirement.
4. They treat financial literacy as an ongoing practice
Some investing fundamentals never go out of style: invest early, avoid chasing fads and diversify your portfolio. But other factors do change over time. If you don’t keep up with new policies, tax rules or shifts in the market, you could end up making outdated decisions.
That’s why financial literacy is a lifelong habit. Staying informed helps you adapt as the economy evolves, and the right financial adviser can fill in gaps if you don’t have the time or interest to track everything yourself.
A good adviser can also guide you through bigger wealth-building strategies like estate planning, tax optimization and retirement readiness. They can point out if you’re falling short of your savings goals or help you adjust during tough times like job loss or the death of a spouse.
5. They know the power of networks and negotiation
There’s an old saying: your network is your net worth. The wealthy take this seriously. Even at events that may seem dull — like cocktail parties or alumni mixers — they see opportunities to meet a future boss, business partner or mentor.
Connections don’t just lead to jobs. They can help you land better deals, meet the right hiring manager or get advice when you’re changing careers. But building a network isn’t about showing up once and expecting a miracle. It’s about consistency. When people see you regularly, they’re more likely to trust you and want to help.
You don’t need a circle of wealthy or powerful friends to benefit. Your network might come from classmates, neighbors or former coworkers. Anyone you meet has the potential to become a resource if you put in the effort to build genuine relationships.
Related Content
-
Retirees, Make These Financial Moves Before the Fed Cuts RatesThe Fed will likely reduce interest rates in mid-September. Financial experts explain where retirees should invest now to boost retirement funds.
-
How to Handle Costly Medical Bills — SmartlyIf you’re looking for a way to pay for looming health care expenses, or if you’ve already fallen into debt, you have avenues to ease the burden.
-
Retirees, Make These Financial Moves Before the Fed Cuts Rates
The Fed will likely reduce interest rates in mid-September. Financial experts explain where retirees should invest now to boost retirement funds.
-
How to Handle Costly Medical Bills — Smartly
If you’re looking for a way to pay for looming health care expenses, or if you’ve already fallen into debt, you have avenues to ease the burden.
-
I’ve Got $50,000 Burning A Hole in My Pocket. Where Do I Park It Amid Rate Cuts So I Don’t Lose Ground?Why a mix of CDs can protect $50,000 from shrinking yields.
-
The Future of Financial Advice Is Human: Gen Z Trusts Advisers, But AI Skills MatterGraduates entering the workforce trust human advisers more than AI tools with their financial planning. But AI can still enhance the client/adviser relationship.
-
Building a Business That Lasts: The Critical Steps to Avoid Blunders'Another Way' author David Whorton offers advice on how to build an 'evergreen' business that endures by avoiding common pitfalls that can lead to failure.
-
How Grandparents Can Help with Education ExpensesBefore paying for your grandkids' education, it's important to consider how to help them without risking your own retirement. Here are 10 things to think about.
-
Four Money Habits Boomers Swore By That Millennials Are Walking Away FromMillennials are trading tradition for flexibility when it comes to building wealth.
-
Abu Dhabi Adventures: New Thrills, Iconic Sights and Disney’s Latest ParkDiscover the mix of culture, wildlife and modern marvels that make this Middle Eastern city a destination to watch.
