Millionaires Live by These Rules To Build Wealth — Experts Explain If They’ll Work for You
January 28, 2025
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There’s an estimated 24.5 million millionaires in the United States. That’s a relatively small percentage of the country’s population, but it’s also not zero — meaning it’s very possible for more people to achieve “millionaire” status. It’s all about being strategic and intentional with your money and financial decisions.
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If you’ve decided to truly pursue the goal of becoming a millionaire, you might be wondering how to get started. What types of rules do millionaires — especially self-made ones — follow to build (and maintain) their wealth?
Building wealth can take a while, but you can get yourself on the right path by prioritizing saving money before you prioritize spending it. In other words, pay yourself first.
According to the Forbes article, you should be saving 20% to 30% of your total income. This means you should save $20,000 to $30,000 for every $100,000 you make. You can do this based on either net or gross income, but gross will result in greater savings potential.
“By prioritizing savings and investments before any discretionary spending, individuals ensure that they are consistently building wealth,” said Shirley Mueller, founder of VA Loans Texas. “The earlier you begin this habit, the more time your money has to grow, particularly through the power of compound interest.”
Millionaires stay millionaires not because they flaunt what they have or spend their money with abandon, but because they live below their means. But they become millionaires because they also think big.
This means spending less than you earn, which could entail eliminating those unnecessary expenses or reevaluating your budget. And it means dreaming of — and planning for — a bigger future.
“Resist the urge to splurge! Once of the most common financial mistakes people make is to drastically increase their expenses as soon as their income increases,” said Melissa Murphy Pavone, founder at Mindful Financial Partners.
“Avoid the urge to spend more as you make more. Instead save more. Invest the difference. As you get a raise, give yourself a raise. Increase your 401(k) contribution. Add to your emergency fund. Your future self will thank you.”
According to Experian, the average U.S. consumer has $104,215 in total debt — including mortgages and other loans. But while some debt is “good” — or rather, useful — much should be avoided.
In particular, those high-interest loans and credit cards can eat into your funds and keep you from achieving millionaire status. If you want to grow your wealth, be smart about how you use debt.
“Many millionaires use debt to their advantage, such as low-interest mortgages or business loans that allow them to invest and grow their wealth,” said Mueller. “The key is to make sure that the money you borrow is working for you rather than against you.”
Don’t shy away from tracking your spending. Millionaires often stay millionaires because they track their every dollar. This might mean using an app or it might mean going old school. Whatever the case, tracking your money is a surefire way to ensure you’re not spending what you don’t have.
According to Forbes, early and consistent investing is also key to becoming a millionaire and building even greater wealth.
You can start small, but it’s important to stick with it. The more money you can invest — and the longer you do it — the greater the overall returns are likely to be. Just be sure to diversify and be prepared to ride out market downturns.
“One of the greatest keys to the creation of wealth is time ‘in’ the market. The quicker you start investing, the more time you can take out of the ups and downs,” said Mueller.
As many millionaires will attest, having multiple income streams is key to building and maintaining wealth.
When you have just one, anything could happen. But when you have several, you’ve got a better chance of riding out any waves.
“Many times, W-2 employees don’t look at things like rental property and things that don’t require direct labor. It is important to have sources of income that they don’t have to spend time on every day, but it is sending them money,” said Kevin D. Quinn, J.D., president at Legacy Counsellors, PC. “You can try to save up enough money to be able to do that, but it’s hard for even well compensated people to save sufficient passive income to live well.”
Your income sources can be active, passive, or a combination of both. So, you can get creative with how you go about it.
“Whether it’s a side hustle or investments, having a few different ways to earn gives you more security and helps you grow your wealth faster,” said Taylor Kovar, founder and CEO at 11 Financial.
According to Forbes, another common rule millionaires live by is this: Protect their wealth. If you want to build a financially-lucrative future for yourself and your family, you’ll want to invest in things that safeguard your assets.
This could be things like life insurance or estate planning strategies. It could also be health insurance or liability insurance. Just make sure you’re implementing the right tools — and risk management strategies — to keep your assets safe.
