What the Ultra-Rich Know About Money That Most People Don’t

Many people dream of being millionaires, but they draw a blank when it comes to what to do to achieve their goal. However, many millionaires share some of the same habits that contributed to their wealth status. Here are three habits of the wealthy that could help you on the path of becoming ultra-rich.

Many people dream of becoming millionaires, but few have a clear plan to make that dream a reality. While luck can play a role, lasting wealth is rarely accidental. In fact, many self-made millionaires and ultra-wealthy individuals share a set of financial habits and mindsets that set them apart.

By adopting some of these strategies, you could take meaningful steps toward building lasting wealth. Here are three habits the ultra-rich practice—and how you can apply them to your own financial journey.

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Why the ultra-rich live frugally (And you should too)

Of course, it’s a no-brainer to make sure you live within your means, but many millionaires go even further and live frugally. It might sound surprising, but one of the most common traits among millionaires is frugality.

Take Warren Buffett, for example. Despite being one of the richest people in the world, he still lives in the modest Omaha home he bought in 1958 and drives a used car. He’s not alone — many millionaires (and even billionaires) drive older vehicles, avoid luxury purchases and stick with homes they bought long before reaching millionaire status.

The ultra-wealthy often embrace frugality through everyday habits like packing lunches, skipping overpriced coffee runs, using coupons, creating detailed budgets and steering clear of high-interest debt — especially credit cards.

Frugal living not only helps build wealth, but it also makes retirement easier. When you’re used to spending less, you won’t need to drastically change your lifestyle later in life to make your savings last.

They know the wealth-building power of having multiple income sources

Having multiple income sources is one of the most important habits of the wealthy. If your only source of income were to disappear overnight, what would you do?

It’s far easier to recover if you have other income sources to rely on. Diversifying income — just like diversifying investments — offers a financial safety net and more opportunities to build wealth.

In a study of wealthy individuals’ daily habits, 65% had at least three income streams, 45% had four, and nearly 30% had five or more. These streams often include rental income from real estate, dividend-paying stocks, high-yield savings accounts or CDs, royalties from intellectual property, and investments in private equity (PE) or venture capital (VC).

While VC and PE were once limited to accredited investors, platforms like Fundrise and Yieldstreet now make these opportunities more accessible.

Similarly, new exchange-traded funds (ETFs), such as State Street’s SPDR SSGA IG Public and Private Credit ETF (PRIV), offer exposure to private markets for everyday investors.

Of course, every income stream comes with its own risks and learning curve. But adding even one secondary source of income could bring more stability — and get you one step closer to millionaire habits.

How the ultra-rich save and invest their money

Saving money is only part of the equation — the ultra-rich make it a habit to invest what they save. In Dave Ramsey’s 2024 National Study of Millionaires, three out of four millionaires credited consistent investing as a major factor in their financial success.

The wealthy tend to diversify their portfolios across a mix of asset classes, including stocks, bonds, real estate and alternative investments like private equity, venture capital, hedge funds and private credit. This strategic diversification helps grow wealth while managing risk over time.

Company-sponsored retirement plans also play a big role. The Ramsey study found that 8 in 10 millionaires regularly invested in their 401(k).

In fact, simply contributing to your 401(k) could make you a millionaire over time. Fidelity’s Q2 2024 Retirement Analysis Report found that nearly 500,000 Americans had reached millionaire status just through their 401(k) accounts.

To make the most of your 401(k), contribute enough to get the full employer match. For example, if your employer matches up to 5% of your salary, be sure to contribute at least 5% to take full advantage of that free money — it’s one of the easiest ways to accelerate your investment growth.

Check today’s savings rates by using our savings tool below, in partnership with Bankrate.

The bottom line

If becoming a millionaire feels out of reach, research shows that many millionaires are what most people would consider average, everyday professionals.

According to the Ramsey survey mentioned earlier, the top five careers for millionaires were engineer, accountant, teacher, manager and attorney.

Most didn’t inherit their wealth — they built it through discipline, consistency, and smart financial habits. The fact that nearly half a million people have become millionaires solely through their 401(k)s should serve as powerful motivation.

By setting aside a portion of each paycheck for retirement savings and investing, you’re not just planning for the future — you’re taking real steps toward building lasting wealth.

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