Look to your left and right. Chances are those around you would love to have a million dollars in the bank. Who wouldn’t? However, reaching millionaire status is much easier said than done, otherwise we’d all be millionaires! Furthermore, not many of us are fortunate enough to come into sudden wealth. So, how exactly does one achieve millionaire status? What many don’t realize is becoming a millionaire is about much more than money. It’s about how you systematically approach life. Jim Rohn, an American entrepreneur, once said, “Become a millionaire not for the million dollars, but for what it will make of you to achieve it.” As Rohn said, you have to change your mentality and lifestyle in order to achieve a certain status of wealth. In this article, we’ll explore some of the daily habits of millionaires so you can incorporate them into your routine and inch closer to your goal!
Table of contents
- What are the most common habits of millionaires?
- 7 Daily Habits of Millionaires
- What are 3 things millionaires do not do?
- How do millionaires spend their day?
What are the most common habits of millionaires?
Ever wondered what fuels a millionaire’s success? Sure, generational wealth plays a role for some — but what about self-made millionaires? And what about the heirs who still maintain that wealth over decades?
The formula comes down to the daily habits of millionaires which, surprisingly, look pretty similar across the board. Most millionaires are committed to protecting their schedule and improving their health.
Another common millionaire trait? The right support. Because you can’t always manage a million-dollar portfolio on your own. In fact, nearly every successful endeavor in the history of humanity had a massive team of people behind it, even if only one person got credit for it. That’s where a wealth manager comes in, helping you maintain your wealth via investments and planning aligned with your financial goals.
But back to millionaires — how do they spend their time, and how do their habits link to success? We’ll find out by looking at seven daily habits of millionaires.
Related Reading: How does life insurance work?
7 Daily Habits of Millionaires
Here’s a sneak peek into the ever-efficient schedule of a millionaire and why it works.
1. They exercise
Celebrity millionaires tend to exercise more because of the spotlight on appearances. But even millionaires in other industries do the same. Tesla CEO Elon Musk doesn’t like exercise, but he still lifts weights regularly. Chef Gordon Ramsay trains for triathlons and Bumble founder Whitney Wolfe Herd tries to fit in 30 minutes of exercise every morning.
See the trend? Now, does the exercise influence their income? One study suggests so, where people who previously didn’t exercise started to and experienced an average 13% increase in income over time.
How do the two connect? Well, exercise tends to show positive effects in multiple facets of life, from improved mood and concentration to greater self-confidence. These factors are useful for making more money, right? Plus, millionaires use that discipline from exercise in other areas of life to fuel success.
2. They plan
Save your spontaneity for vacations, it’s not one of the daily habits of millionaires. They don’t leave their livelihood to chance. Time management is linked to improved job performance and wellbeing, both of which support a millionaire’s lifestyle and goals.
Planning might look like strict time allocations for certain tasks, dedicated time for priorities, and strict discipline to their schedule. There are tons of methods and strategies to effectively plan your day, week, month and year. Some effective strategies include the Pareto Analysis, Eisenhower Matrix, and the Time Blocking Method. Each person is different, so find the best planning strategy for you.
3. They’re selective with their social circle
Tons of proverbs echo the same idea: you are who you hang out with. Even millionaire finance consultant Dave Ramsay shared this sentiment on Twitter.
Think about your life as a sponge, constantly soaking up what’s in your vicinity. If the people around you are working hard and achieving great things, you’ll absorb a lesson or two. Similarly, surrounding yourselves with people who don’t share your work ethic or don’t celebrate your success eventually leaks negativity into your life and even your own achievements.
On top of that, millionaires nurture close friendships. Often, you’re either in or out with them; they don’t have many casual friends or acquaintances. It’s almost like exercise — jogging or weight lifting keeps your health in check, but one study shows that friendships do the same!
4. They delegate
Even millionaires are human — they can’t do everything and they are aware of this. So they figure out what they’re good at, what they’re not so good at, and what takes up the most time. A combination of the latter two items informs what they delegate to other people – a sure way to improve revenue and earnings in business.
How does this help? For starters, delegation reduces the risk of burnout. Plus, it frees up millionaires’ time to either make more money or take care of their health.
5. They’re on top of their taxes
More money means more taxes, especially in Canada. But we have a few angles to look at this. Millionaires, aka Canada’s top 20% of earners, pay 61% of the country’s total tax. You’d think that would mean they pay a solid chunk, right? And they do — but they have stellar advice and invest in financial consultation to minimize those taxes as much as possible.
Millionaires are aware of their tax obligations, but also hire accounting experts to help them take advantage of government tax rebates, grants, deductions, and more to minimize their obligations. In addition, millionaires acknowledge that with power (in this case lots of money) comes great responsibility. Failing to file and pay taxes will only threaten their success in the long run.
A solid 10% of Canadians don’t file their taxes. Now, you might look at that as a way for them to skip out on their payment obligations. But they’re actually missing out on tax benefits and advantages they’d otherwise be eligible for. Millionaires don’t let those opportunities go to waste. Further, they understand the responsibility of earning money and pay their dues accordingly. A CRA audit would only harm their hard earned wealth.
Filing taxes may not be a daily habit of millionaires since the obligation may only become due annually. However, they often think of the consequence of tax in their daily decision making. This minimizes their burden in the long run.
6. They prioritize self-improvement
Wealthy people read — and not for pleasure. For instance, self-help books to regulate emotions, entrepreneurial biographies, and wealth management books are a few fields of literature in the millionaire library. But self-improvement is not just about reading. There are many ways to work on yourself, such as going to therapy to improve your attitude. Or hearing then incorporating feedback from those around you, may it be colleagues or loved ones.
Pro tip: Substitute your daily Instagram doom scroll with 30 minutes of reading a self-help book. You’ll feel inspired and learn a thing or two!
7. They’re selective with meetings
One interview with Mark Cuban outlines this perfectly: “I don’t do meetings unless someone’s writing a cheque.” Elon Musk has also indicated a disdain for meetings, only holding them when absolutely necessary to avoid wasting time. Musk once said, “Walk out of a meeting or drop off a call as soon as it is obvious you aren’t adding value. It is not rude to leave, it is rude to make someone stay and waste their time.”
But sometimes, it’s not just about cancelling the meeting altogether — it’s about having strict timelines and objectives for them. One way millionaires might prioritize important projects is through an app like Motion. This AI tool improves productivity by 137% on average, and is used by over 10,000 CEOs globally.
Related Reading: Active vs Passive Investing
What are 3 things millionaires do not do?
Do you do any of the following habits? They might be stopping you from levelling up financially.
1. They don’t smoke
Sure, exceptions exist. But countless studies link smoking to lower income and education levels.
About 18% of people from lower-income households smoke cigarettes, while under 7% of those in higher-income households smoke. The result? An increasing life expectancy gap between the rich and poor, which documents an extra 15 years of life on average for people in higher income brackets.
2. They don’t take on too much bad debt
Do you know the difference between good debt and bad debt? Credit card debt, if left unaddressed, is bad debt. Why? Because it offers virtually no benefit to the user (unless always paid on time and in full) and has very high interest. But mortgage debt helps you maintain an appreciating asset — which means it’s good debt. In other words, with debt like a mortgage, you’re flowing money into something that creates value in your life.
Most millionaires are intentional with their debt. They don’t live beyond their means, and instead use debt to build them more wealth. One example of wealth-building debt is a HELOC or mortgage to fund a real estate investment, renovation, or similar. They use debt to make them money, not push them further in the hole of debt.
3. They don’t limit themselves to one income stream
Who comes to mind when you think of millionaires? Let’s say Rihanna pops into your head. She’s made her fortune from selling records and performing live, right? But that’s only half the picture. Rihanna also owns and operates one of the world’s most successful retail brands, Fenty Beauty, and has an expansive real estate portfolio. All these things together have given her a billionaire status.
The same is true for virtually any influential figure you can think of from Warren Buffet to Bill Gates to Tom Brady. They may not all make their money the same way, but they spread it around and ensure that what they spend money on produces wealth or generates income.
How do millionaires spend their day?
Millionaires spend their time on the things they know will bring them more income and wealth. That could be nurturing a solid friendship, investing in education, or delegating busy work to spend time on the most revenue-generating tasks.
But most people with millionaire status didn’t make it there alone. They might have employed support from financial professionals like planners, tax consultants, and, of course, wealth managers. Wondering how to up your financial picture to the millionaire level? Find a wealth manager today!