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In a world of average people — and average salaries — many of us aspire to join the 7-figure club. Who doesn’t dream of becoming wealthy, so they can stop working, go on guilt-free shopping sprees and take endless vacations?
However, most rich people don’t do those things, and that’s part of how they build and maintain their wealth. There’s a difference between living a life of careless spending (which will quickly drain even a wealthy person’s bank account) and living for long-term financial independence and wealth.
The self-made rich aren’t necessarily smarter than anyone else, but they have mastered some important principles that help them get ahead and stay ahead. Most important, they treat building wealth as a learnable skill — and it’s one that you can learn, too.
So, if you’d like to join the ranks of the super wealthy, try honing these 10 habits and lifestyle changes and see what financial freedom truly feels like.
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.
Related: How to Create a Growth Mindset as an Entrepreneur
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 drive, talent and, most important, 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. Get outside your comfort zone.
Wealthy people are successful because they have learned that success comes to those who embrace a little discomfort. They understand that the only way to really improve is to push yourself beyond your limits. If you want to become wealthy, you’re going to need to fuel your creative spark, come up with unique business ideas and then take the plunge.
Wealth and success don’t emerge from the safety of a 9-to-5 job. They come from drawing on your inner strength and going for your big dream. All successful business leaders, visionaries and game-changers have gone beyond their comfort zones in order to achieve the ultimate success. The people who will go down in history had the courage to face their fears and take that first step into the unknown.
Related: Why You Need to Step Out of Your Comfort Zone
4. 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.
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.
Related: Entrepreneurship Is a Game of Calculated Risk
7. 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.
8. 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!
Related: 6 Hard-core Steps to Take to Retire at 50
9. 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.
10. Take time to reflect.
Many of the self-made wealthy spend time in focused 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.