Photo: KnowInsiders
Photo: KnowInsiders

No matter how much money you earn, you'll always be poor if you spend more than you make.

Most of us have worked hard and saved carefully to accumulate the assets we have. Similarly, many of the wealthiest people in the world achieved their status through effort and long hours. Amassing a fortune is one part of the equation — keeping and growing it is another. That’s a goal all of us have in common, no matter what our tax bracket.

The very wealthy do have access to some resources that others don’t, but many have also acquired smart habits that help them guard and build their fortunes. These habits can be adopted by anyone who wants to better secure their own nest egg (and who among us doesn’t?).

So, what smart practices do the wealthy routinely follow?

Here are 9 things that rich people do to keep getting richer

1. Have a financial growth mindset

Wealthy people are incredibly creative when it comes to thinking about business and finding different ways of making money. Mega-successful people set themselves apart because they nurture a financial growth mindset, which changes how you view money and helps you focus on seeing profitable opportunities.

This mindset helps successful and wealthy people believe that there are always bigger and better projects to work on and there’s always more money to be made. They’re open to exploring new ideas. They believe they’re always capable of making changes and creating a positive outcome.

2. Network with other successful people

Wealthy people understand the importance of surrounding themselves with other successful people. Wealthy people spend time networking with others who are wealthy but also have the drive, talent and, most importantly, the potential to become wildly successful. The rich spend time every month getting to know other like-minded people at conferences, events and gatherings, or just grabbing coffee or a drink with someone interesting.

This is time wisely invested, as it keeps their minds focused on success and helps them meet new people who have fresh and thought-provoking ideas. Doing this also helps wealthy people fill their contact lists with relevant and influential people who can potentially help them (and vice versa).

3. Create multiple income flows

The more money you have, the easier it is to make more money. And the easiest and fastest way to make more money is to have multiple income streams. That way you always have money coming in and can use the excess income to invest in new income flows. This, in a nutshell, is the primary way the wealthy stay wealthy.

There are two basic forms of income: active income, in which you work for the money you make, and passive income, in which payment isn’t directly tied to the number of hours you work. Passive income includes rental property, dividend stocks, index funds, writing a book or creating an app, all of which will bring in a steady flow of income from sales or royalties.

4. Avoid overspending

While non-wealthy people daydream about spending money without worry, buying fancy cars, big houses and expensive clothes, the rich understand that the more money you spend, the less you have. The wealthy wouldn’t stay wealthy long if they spent excessively. No matter how much money you earn, you’ll always be poor if you spend more than you make.

The rich recognize that the less you spend, the more money you have to grow your wealth. Keep in mind that frugality is relative to your income -- a wealthy person may spend much more than someone who is considered middle class. But in relative terms, the rich tend to be thrifty, and they make sure they don’t overspend.

5. Invest

Rich people make their money work for them. They know that investing is the key to growing their finances. While saving money for a rainy day is important, your investments are going to do the heavy lifting to help you become wealthy.

Saving means putting money into a safe place until you want to retrieve it, but most savings accounts don’t yield high interest, so this pile of money basically stays static -- it’s not going to grow much beyond what you add. But smart investments will give you healthy returns, which you can then reinvest. When you invest in something, you also accept some amount of risk, so you never want to invest more than you can afford to lose.

6. Take calculated risks

The rich don’t gamble on big financial decisions; they do what they can to mitigate risk. They do their research and analysis, and determine which options best suit their financial needs and business desires. They weigh the pros and cons, and then take calculated risks.

They make financial decisions by asking themselves, “Will this bring me closer to my goal?” They avoid frivolous risks that aren’t really going to benefit them, and never take a cavalier attitude when it comes to money.

7. Take time to reflect

Many of the self-made wealthy spend time focused on thinking every day. Spending 30 minutes (or more) in a quiet space gives them time to reflect on their life and goals, to think about their health and relationships, consider their career and financial goals, and analyze where they’re currently at and where they want to be. Critical thinking time is essential to staying ahead of the market and considering what changes may be coming your way.

This is also time to focus on self-improvement and working through ideas. Some may opt for journaling or writing to help them come up with creative solutions and ideas. Just make sure you’re spending your time on productive thinking. Don’t waste your mental energy on ruminations or negative thought loops that will make you second guess yourself. The wealthy don’t.

8. Focus on self-improvement

Wealthy people are usually avid readers, but you won’t find many mindless beach novels in their bookcases. The wealthy understand the importance of self-education and pushing themselves to become better in all ways. In fact, if you look at the books piled by their beds, you’ll mostly find titles on self-improvement.

While 85 percent of rich people read two or more self-improvement books per month, only 11 percent read for entertainment, compared to 79 percent of the poor. And a whopping 94 percent of wealthy people read news publications, compared to 11 percent of non-wealthy people.

9. Never completely retire

The ultra-rich certainly have enough money to never work another day in their life, but the majority of them keep working, at least to some degree, often well past 70. That doesn’t mean they’re clocking long days at the office; indeed, they’re probably taking their fair share of vacations and enjoying flexible schedules. But many rich people never completely retire. This is not because they can’t afford to, but because they enjoy what they do.

Many are entrepreneurs at heart, and the desire to run and grow a business never leaves them. The stability of working and the sense of purpose and fulfillment it gives them is an important part of their overall happiness. Working gives them an ongoing feeling of success and an objective to keep them focused. Not to mention that it keeps the money rolling in!

The World's Billionaires - Richest People On Earth, 2021

1 Elon Musk $296 billion United States Technology
2 Jeff Bezos $201 billion United States Technology
3 Bernard Arnault $164 billion France Consumer
4 Bill Gates $136 billion United States Technology
5 Larry Page $127 billion United States Technology
6 Mark Zuckerberg $124 billion United States Technology
7 Sergey Brin $122 billion United States Technology
8 Steve Ballmer $117 billion United States Technology
9 Larry Ellison $112 billion United States Technology
10 Warren Buffett $103 billion United States Diversified
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5 Examples of How Rich People Do Differently

1. They don’t pay money for a brand.

Photo: BBC
Photo: BBC

Facebook founder Mark Zuckerberg once explained that this helps him to not be distracted from global goals. He wears a gray shirt every day, because, according to his philosophy, he wants to clear his life so that he has to make as few decisions as possible about anything except how to best serve his community.

“I feel like I’m not doing my job if I spend any of my energy on things that are silly or frivolous about my life, so that way I can dedicate all of my energy toward just building the best products and services.”

By the way, the second richest man in the world, Bill Gates, also prefers cheap things. For example, he wears a Casio Illuminator W214H-1AB wristwatch, which costs $24. The billionaire himself cheerfully talks about how much they cost.

2. They eat healthy food.

Photo:  © oprah/instagram
Photo: © oprah/instagram

Writer, public speaker, and philanthropist Tony Robbins achieved a net worth of $500 million. You might think that he spends it on expensive wine and grilled steaks. But in reality, he permanently follows a healthy diet that gets him through his 16-hour workdays.

According to his personal trainer, Tony eats eggs and coconut bread for breakfast, a large green salad with avocado for lunch, and potatoes with organic protein and vegetables for dinner.

3. They have a diary.

Rich people spend their time productively. In his book, Rich Habits: The Daily Success Habits of Wealthy Individuals, Tom Corley outlines several of the differences between the habits of the rich and the poor. He states that 81% of wealthy people maintain a to-do list vs 19% of poor people. He believes that this is one of the key habits of wealthy people. The list should include things that have an 80% chance of completion within a day. Then in the evening, you need to sum up the results.

4. They limit their workday.

Photo: © zuck/instagram
Photo: © zuck/instagram

Murray Newlands is an entrepreneur, investor, business advisor, and speaker who works with a lot of exceptionally rich people. He says that not working in the evening is as important as working productively throughout the day. He recommends devoting the time after 6 p.m. to yourself and to not even checking an email or answering a telephone call.

5. They invest in relationships.


Tom Corley has another good tip. He believes that 79% of successful entrepreneurs spend 5 or more hours each month networking. This means staying in constant communication with successful people who can share their experiences with you and talk about their best ideas. Networking with others in your industry will give you knowledge from those who have already made costly mistakes and could end up protecting you from them.

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