How to Manage Money Like a Millionaire (Even If You’re Not One Yet)

For many people, becoming a millionaire is a long-term goal. While crossing that financial milestone is no small feat, the good news is that you don’t have to be a millionaire to start managing your money like one. By adopting smart financial habits and making strategic decisions, you can build wealth over time and move closer to financial independence.

According to Schwab’s 2024 Modern Wealth Survey, Americans believe it takes an average net worth of $2.5 million to be considered wealthy. However, financial comfort is a different story. This year, respondents said they’d need about $778,000 to feel financially secure, down from the $1 million peak in 2023. These shifting perceptions highlight the importance of not just earning more but managing money wisely.

Whether you're working toward your first six figures or aiming for millionaire status, understanding how wealthy individuals manage their money can provide valuable insights. From smart budgeting and investing strategies to prioritizing financial security, here’s how you can start thinking — and saving — like a millionaire today.

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Prioritize saving over spending to build long-term wealth

Many people focus more on their spending than their savings, but the principle of “paying yourself first” is key to building wealth. Instead of prioritizing expenses and saving whatever is left over, many millionaires take the opposite approach — allocating a percentage of their income to savings and investments before budgeting for discretionary spending.

A strong savings goal is to set aside 20% to 25% of your gross income, though the exact amount will vary based on your financial situation and long-term goals. The key is consistency — automating savings contributions can make it easier to stick to this habit without feeling the temptation to overspend.

Once you establish your savings target, you can design a spending plan around what’s left. This approach ensures that essentials like housing, food and transportation fit within your budget while leaving room for discretionary purchases.

High-net-worth individuals often work with financial advisors to optimize their savings and investments, but if you’re just starting out, there are plenty of budgeting and savings apps — like You Need a Budget (YNAB) and Quicken’s Simplifi — that can help you track expenses, automate savings and stay on course toward your financial goals.

Choose the best places to save and invest for long-term growth

Simply setting money aside isn’t enough — you need to put it to work. The key to building wealth is strategic saving and investing, starting with retirement accounts. According to Empower, high-net-worth individuals hold 55% of their overall wealth in retirement accounts like 401(k) plans and IRAs, emphasizing the importance of long-term, tax-advantaged investing.

A study by Ramsey Solutions found that 80% of millionaires invest in their company’s 401(k) plan, while 75% also invest outside their employer-sponsored plans. Consistency is a major factor in their success — three-quarters of surveyed millionaires cited regular, long-term investing as their primary wealth-building strategy.

Interestingly, not a single millionaire in the study credited single-stock investing as a key driver of their wealth. Instead, diversified, disciplined investing over time has proven to be the most reliable path to financial success. While high-net-worth individuals often work with financial advisors to optimize their portfolios, if you’re just starting, investing apps like Fidelity and Vanguard, can help you automate contributions and build a solid investment strategy.

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Keep It Up and Don’t Talk Yourself Down

It’s important that you never stop good saving and planning habits once they’ve been established. It can be tempting to ease off the accelerator when you feel financially comfortable, but if you want to save like a millionaire, you’ll keep up your good habits even after you’ve saved what seems like plenty of money.

Just as crucial as consistency is believing that financial success is within your reach. According to a Ramsey Solutions survey, most millionaires didn’t rely on massive salaries to build wealth. In fact, only 15% held senior leadership positions like CEO, while 93% attributed their wealth to hard work and disciplined financial habits, not high incomes.

Surprisingly, teaching was among the top five careers for millionaires, proving that financial success isn’t limited to high-paying professions. The key takeaway? Wealth-building is more about smart money management than how much you earn. By maintaining good habits and believing in your long-term financial goals, you can set yourself on a millionaire’s path — regardless of your current salary.

The bottom line: Smart habits can lead to financial success

Saving like a millionaire isn’t easy, but with strategic planning and disciplined spending, it’s absolutely possible. Avoiding credit card debt, prioritizing consistent savings and making smart investment choices can set you on the right path, no matter your current income level.

By focusing on long-term financial goals, staying consistent with saving and investing, and believing in your ability to grow wealth, you can take control of your financial future — just like a millionaire would.

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