The Smart Way to Retire: 13 Habits to Steal From the Wealthy

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You’ve likely heard stories of people born rich or stumbling into a windfall, but many wealthy retirees started with just a small stash and grew it over time with smart money moves. The best part? You don’t need a fat wallet to steal their tricks.

Whether you have $10,000, $100,000, or well over one-million, these 13 habits to steal from the wealthy can set you up for a long and happy retirement.

Here’s how to put each one into action, with tips and examples inspired by wealthy retirees’ playbooks.

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1. They pay themselves first (and automate it)

One of the most common habits of the wealthy is paying themselves first. But this only works by setting aside a portion of your income to be allocated to savings or investments before spending that money on anything else.

Auto-transfer 10% to 20% of your income to a 401(k) or IRA. Vanguard’s How America Saves 2025(pdf) shows auto-savers have 29% higher balances.

Paying yourself first ensures you’re building wealth over time.

2. They keep their money moving

Wealthy retirees grow every dollar. Invest cash in stocks, ETFs, or high-yield savings (an average of 4% to 5% APY per Bankrate 2025), instead of letting it sit.

As of January 2026, the current top high-yield savings account rates range from about 4.00% to 5.00% APY, depending on the institution, balance and qualifiers, direct deposits or limited balances, per Bankrate, instead of letting it sit.

Don’t let cash sit in low- or no-interest accounts. Letting your cash sit idle means it loses value to inflation, which currently sits at 2.7%. Even $1,000 invested in a high-interest account can grow significantly.

3. They live below their means

In The Billion Dollar Secret, Rafael Badziag writes about how most billionaires view money as something to invest, rather than something to spend. That may be contrary to many people's perceptions.

Spend less than you earn, avoid lifestyle creep, and save the difference for retirement. This strategy keeps wealth accumulation on track.

As reported by Kiplinger, the Employee Benefit Research Institute (EBRI) Spending in Retirement Survey shows that retirees who overspend early struggle later. Many wealthy individuals will aim to live on 70-80% of their income, saving the rest.

4. They ditch costly debt

The wealthy avoid high-interest debt, like credit cards, by paying balances in full each month. Average credit card APRs in 2026 range from about 19.61% up to 23.79% or more. Interest payments drain wealth and can create a never-ending cycle of debt.

In 2025, Talker Research conducted a survey commissioned by National Debt Relief. It found that 72% of older Americans have accumulated debt, with more than half feeling overwhelmed and fearing they’ll never pay it off.

If you’re up to your neck in debt, prioritize paying off high-interest balances first using the debt avalanche method.

5. They’re securing a powerful, worry-free financial tomorrow

Create a roadmap for retirement, including savings goals, expected living expenses and investment strategies. Plan too for unexpected expenses, such as emergency medical or long-term care costs.

The 2025 EBRI/Greenwald Retirement Confidence Survey shows that consistent savers often have 100–300% more in retirement savings overall vs. spenders due to compounding and disciplined habits.

6. They meet regularly with a financial adviser

Consult a professional to refine your retirement strategy, optimize investments and avoid any pitfalls. Advisers can catch blind spots. The 2025 Trends in Retirement Planning survey by the Financial Planning Association (FPA) shows that retirees who meet with a financial adviser have 15% higher savings on average than those who don’t.

7. They stick to a budget

Following a spending plan to control expenses and preserve savings in retirement just makes sense. That’s why the wealthy do it. Budgets ensure the longevity of funds. One example is using the new 60/30/10 rule (60% needs, 30% wants, 10% savings and debt), and adjusting post-retirement for fixed income.

Jake Falcon, CRPC and CEO at Falcon Wealth Advisors, points out that wealthy retirees don’t just budget — they align spending with their values. "Whether it’s travel, philanthropy, or family experiences, they prioritize what brings joy and meaning."

He says that he often encourages clients to embrace “guilt-free spending” once essentials and savings goals are met. "This mindset helps retirees enjoy their money without anxiety."

8. Wealthy individuals invest early and often

Start investing in your 20s or 30s and contribute regularly to leverage compound interest. The secret to compound interest is less about the amount that is saved and more about the amount of time it is invested.

A $5,000 investment at age 25 can grow to $70,000 by age 65 at 7% annual returns. Invest what you can early on and increase your contribution with raises or with additional income as it becomes available. Check out Kiplinger’s Retirement Calculator to see if you’re on track.

9. They prioritize assets over liabilities

The wealthy regularly focus on acquiring wealth-building assets, such as stocks and real estate, over debts, like car loans and mortgages. That’s because assets generate income, whereas liabilities drain it. The annual Wealth Report for 2025 notes that wealthy retirees hold 70% or more of wealth in assets.

"From unused vehicles to rental properties, wealthy retirees often sell assets that no longer serve them. This isn’t just financial — it’s emotional." As Falcon has said many times, 'Don’t confuse selling the item with selling the memory.' Simplifying frees up time, reduces stress, and improves financial clarity."

10. The wealthy make their money work for them

Use passive income, such as dividends, rentals, or automated investments to grow wealth without constant effort. Passive income ensures financial freedom.

According to IRS data reported by Yahoo Finance, the average millionaire has seven income streams, including dividend income from stocks, rental income from real estate, capital gains from selling assets that have appreciated, and interest from savings, bonds or lending activities.

Consider Jeff Bezos: His annual salary is reportedly only $81,840, but most of his $266 billion net worth comes from his Amazon shares. (Bezos intentionally capped his base pay at around $80,000–$81,840 since the late 1990s (with no bonuses).

11. They have financial knowledge

Financial knowledge reduces the chance of making costly mistakes. Learn about investments, taxes and retirement accounts to make informed decisions.

Yet, according to the Schroders 2025 U.S. Retirement Survey, nearly one-third of investors (31%) don't know how their retirement money is invested. This unfamiliarity highlights ongoing gaps in awareness about 401(k)s and similar accounts.

12. They often review and adjust

Reassess your financial plan at least yearly to adapt to market changes, expenses or changes in your long-term goals. This approach, done proactively, can lead to better decision-making and improved financial outcomes over time.

13. They take educated risks

Wealthy individuals typically invest in diversified, calculated opportunities, such as stocks and real estate, rather than only “safe” options like bonds. Plus, they diversify their portfolio with index funds or consult with an adviser for risk tolerance.

Falcon agrees that diversification is key. "Before retirement, many wealthy individuals trim concentrated positions — especially employer stock— and simplify their portfolios. Holding 30–60% of your net worth in one stock is risky. Diversification reduces volatility and aligns the portfolio with income needs rather than growth speculation."

Set yourself up for success

Even if you don't have a substantial inheritance, millions in the bank, or 15,000 shares in Apple, you can still make smart money moves to set yourself up for retirement success.

Stealing habits from wealthy retirees like paying yourself first, ditching costly debt and keeping your money moving can help you build a secure nest egg, whether you’re starting with a little or a lot. Start small, stay consistent and watch your retirement fund grow. Your future self will thank you.

For the past 18+ years, Kathryn has highlighted the humanity in personal finance by shaping stories that identify the opportunities and obstacles in managing a person's finances. All the same, she’ll jump on other equally important topics if needed. Kathryn graduated with a degree in Journalism and lives in Duluth, Minnesota. She joined Kiplinger in 2023 as a contributor.