Millionaires reveal 8 habits that helped them get rich

Ever heard the phrase 'the rich stay rich by pretending to be poor, and the poor stay poor by pretending to be rich?' It's a simple enough concept to understand, yet somehow some of us just can't stop frivolously spending our hard-earned cash on Iced Vanilla Frappes or fancy overpriced cupcakes for the sake of the 'gram. We need to take back control of our finances and, ironically, live like the millionaires do. Well, kind of... (Picture: Getty Images)

Most self-made millionaires - especially those from humbling rags-to-riches backgrounds - will tell you that the end game is to keep your cash, while increasing your net worth every day. Not spend it all and end up right back at the start again. So, for those looking for a bit of financial advice from those who have made it to - and stayed - at the top, here are eight tried-and-tested frugal habits that helped them get rich… (Picture: Getty Images)

1. Automate your savings

Rory Donadio, the CEO of Tribeca Capital Group, say you should automate your savings. I.e, setting up a monthly standing order that transfers a set amount of cash into your saving fund. Donadio shares: 'No matter how much I earned, I made sure a certain percentage of my income was automatically transferred to a savings or investment account. This ensured consistent savings but also reduced the temptation to spend' (Picture: Getty Images)

2. Distinguishing wants from needs

Donadio says that regardless of how wealthy you become, you should always weigh up the pros and cons before any purchase, no matter how small. He explains: 'One frugal habit that has stuck with me throughout my journey to becoming a self-made millionaire is distinguishing between needs and wants. This simple yet effective habit helped me prioritise my expenses and save a significant amount over time. Even with a seven-figure fortune, I continue to live by this principle, making conscious decisions about my spending' (Picture: Getty Images)

3. Organise your finances by budgeting

Younger self-made millionaire Cameron Heinz, who built his company, Mobility Nest, into a seven-figure business in his early 20s, stresses the importance of budgeting. Whether it's planning financially for business or personal ventures, he says adhering to a budget has always helped - never hindered - his monetary growth. Heinz explains: 'I’ve always adhered to a strict budget, and I will continue to do so. Budgeting helps me allocate resources efficiently, prioritise investments and avoid unnecessary expenses. It played a crucial role in managing cash flow during the early stages of my business.' Granted, everybody's budgeting scale will be different, but ensuring that you plan ahead and don't overspend - even if it's just on your weekly shop - will make all the difference to your future finances (Picture: Getty Images)

4. Avoiding lifestyle inflation

Both Donadio and Heinz cite avoiding lifestyle inflation as a non-negotiable to boosting wealth. This means they would rather bank their hard-earned cash over spending it on superficial items like designer clothes, expensive cars, fancy dinners, or other depreciating assets. Just because they've got money, it doesn't mean they need to live a flashy lifestyle to reflect that. Heinz says: 'I’m committed to avoiding excessive lifestyle inflation. It’s easy to succumb to luxury spending as income grows, but maintaining a modest lifestyle ensures financial stability and sustainable growth.' Like Donadio's want vs need mantra, if the purchase isn't a requirement, it's not worth buying. Save your money instead… (Picture: Getty Images)

5. Don't be wasteful with luxury items

For those who wear makeup or use beauty products on a regular basis, self-made millionaire Bernadette Joy has some simple yet effective advice you might want to take note of. Joy, who managed to pay off $300,000 worth of debt in three years, and then launched her successful coaching business, Crush Your Money Goals, where she teaches others how to make their money work for them, says that she always uses every drop of her products. Even when you're rich, she says there's no room for waste (Picture: Getty Images)

6. Cooking for yourself

Danica Patrick, a former race car driver with an astounding net worth, says she saves money by cooking her own meals. Constantly eating out - regardless of how small the price tag - can have a big impact on your bank balance. You might think a couple of quid here and there doesn't make a difference at the time, but if you were to check your bank statement at the end of the month, you'll probably be horrified at how much you spent on unnecessary food. According to Forbes, it's almost five times more expensive to order delivery from a restaurant than it is to cook at home (Picture: Getty Images)

7. Investing

Granted, for some this is easier said than done. The thought of investing can be incredibly overwhelming, especially if you have no idea where to start. But put the work in and Heinz says it will pay off. 'Prudent investing in assets that appreciate over time — such as stocks, real estate or business expansion — has been instrumental in growing my wealth. I’ll continue to make informed investment decisions,' he says. 'These frugal habits helped me accumulate wealth,' he added, explaining that they 'provided financial security, enabled reinvestment in [his] business, and fostered a mindset of financial responsibility' (Picture: Getty Images)

8. Eliminate debt

Again, this isn't always possible for a lot of people - especially those who have accumulated large debts thanks to college or university fees. Paying off debt isn't an instant process - it's one that can take time but it's always worth it. You also need to be good at budgeting (one of Heinz's other top tips), as it can help speed up the process. So, if you have debt, the sooner you pay it off, the better. Then, once you're debt-free, you'll have more financial freedom to start saving money and growing your wealth (Picture: Getty Images) This article was originally published in May 2024