Do you know why you struggle financially? Do you know why you’ve got no money at the end of the month? It’s because you have the habits of poor people. You’ll have to develop the habits of rich people if you want to become wealthy.

Rich people have very different habits compared to the poor and the middle class. Human beings are creatures of habit, and we are what we repeatedly do. Have you noticed that you do the same thing over and over again? That you have a routine with habits that make you feel comfortable?

People like routine because it’s comfortable, like a safe place. But the ugly truth is, if you want things to change, you have to get uncomfortable, and take the time to try new routines.

Table of Contents

  • Getting Rich Is A Habit
  • Rich People Count Their Money
  • Rich People Pay Themselves First
  • Wealthy People are Constantly Improving Their Earning Ability

Getting Rich Is A Habit

In a study, Dr. Maxwell Maltz observed that it takes a minimum of 21 days for an old mental image to dissolve and a new one to form. That became known as the 21 day habit myth. But does it really take that many days for anyone to create a new habit?

Another study by Phillippa Lally and her team at University College London had different results. They found that it takes about 66 days for a new behavior to become automatic. The time period depended on the person, the habit, and the circumstances.

But whether it takes you 21 days or 66 days to form a new habit, you have to be determined to work towards changing. You can’t just decide you want to do something differently and then hope you achieve your goal. No. You need to be prepared for change and be ready for the commitment. Unfortunately, many people are uncomfortable with change.

First, recognize that getting rich is not an act, it is a habit. Click To Tweet

First, recognize that getting rich is not an act, it is a habit. Staying poor is not something that just happens to you – staying poor is also a habit. Maybe you have some “Poor People Habits” that are holding you back. Today, I’m going to teach you what “Rich People Habits” look like. Let me start by teaching you the three best habits of rich people:

1. Rich People Count Their Money

The first habit of rich people is we count our money regularly. We are financially literate: we know how to make, manage and invest our wealth.

Poor people don’t count their money. They get a paycheck, they spend the money, they have no idea what their expenses are – and they have no idea how money flows or where it goes.

Many poor people only look at their finances once per year when they file their taxes. Even then, some poor people don’t look at the numbers and they simply pay the taxes they owe.

In other words, poor people spend their money first, and then think about saving. This is contrary to the rich person’s habit of saving first, and then spending.

Understanding Financial Literacy

If we start to learn financial literacy when we are young, we will have good habits when we get our first job. But, according to Wikipedia, “only 17 states  [in the US] require high school students to take a course in personal finance.”

If you aren’t financially literate, you can end up owing large amounts of debt and making poor financial decisions in your lifetime. Research data by the Financial Industry Regulatory Authority, has found that “63% of Americans are financially illiterate.” Most Americans cannot reconcile bank accounts, pay bills or debt on time, or plan for their future.

Rich people are always very aware of how their money is flowing and where it’s going. Every single day, rich people have a habit of looking at their numbers and logging into their bank accounts. They regularly review their cash flow, expenses, revenue, reserve, etc. If a rich person has several companies, they’ll look at the financials for each company, every single week.

Review Your Cash Flow

So what is cash flow? It’s when you can answer the question, “Where does all the money go?” At least every single month or week, go over where you spend all your money. How much of your money goes toward

  • Housing
  • Car/transportation
  • Living expenses (groceries, utilities, etc)
  • Debt repayment
  • Savings
  • Other expenses

Then look at how much money you have coming in each month from income, investments, and other sources. If you’re losing more money than you are making, you have negative cash flow. If you’ve got money left over after all your expenses, you have a positive cash flow.

One way to increase your cash flow is to build up your assets and generate a side income. Some examples of assets are rental properties, stocks, and investment accounts. Another way is to have a plan to gradually decrease your debts.

As Robert Kiyosaki once said, “It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.”

Regularly review your cash flow and expenses. How is your money flowing? What problems are you seeing in your expenses and savings? Are you paying for unnecessary expenses, such as memberships or subscriptions you don’t use? What can you do this week or over the next month to improve your cash flow? Always be aware of your financial situation and count your money.

Rich people do this because what gets measured gets improved. Remember that.

2. Rich People Pay Themselves First

One of the habits of rich people is they pay themselves first. What does it mean to pay yourself? Paying yourself doesn’t mean you buy yourself a car, book a vacation or go on a shopping spree. That’s not paying yourself because when you buy a car, you’re paying the automotive company and when you go on a shopping spree, you’re paying the stores.

Investing Your Money

Paying yourself means that you invest your money. You take a percentage of your income to pay yourself first, and you take that money and save it, and invest it.

The book The Richest Man in Babylon by George E. Clason said that you should save 10% of your money to invest, and pay yourself 10%. Nowadays, with what’s happening with inflation and our current economic status, I’d suggest paying yourself much more than 10% of your earnings.

Everything is more expensive now, and putting aside 10% won’t be enough. At the very minimum, you should put 10% aside, but as your income increases, you should increase that amount. And with that 10%, decide how you want to allocate it: whether you want to put it towards different types of investments or your retirement.

Even if your income right now isn’t significant, you can still start the habit. People think millionaires were always rich, but that isn’t always the case. Some begin with very little income, and build up their wealth over time, as in the case of this millionaire’s story.

He started with a beginning salary of $10,500 a year in 1988. After five years, he was making $46,000. By 2005, he was making $500K per year. During that time, he had to pay off debts, including purchasing a house. My situation was very similar. Over time, I focused on saving and investing, and gradually built up my wealth to where it is today.

Earn More Than You Spend

Here are some numbers to think about. Since 1914, the rate of inflation has been rising by about 3.24 percent. Something that cost $20 back in 1999 will now cost about $31. A house that cost $193,900 in 1999 should cost $298,774 today. But that sale price today is $377,200. When we look at other numbers, such as the cost of buying a car, it’s clear that our dollar buys less today than it did a decade ago.

Now, compare those numbers to our salaries. Household incomes have increased over the past ten years but not as fast as they should. According to the Census Bureau for the US, the “median household income in 1999 was $42,000…. that price today should be $64,716.” But data “places household income at $61,227, meaning that it has failed to keep up with inflation and is 5% below where it should be.”

Data 'places household income at $61,227, meaning that it has failed to keep up with inflation and is 5% below where it should be.' Click To Tweet

When you are deciding how much to save, you need to keep those inflation numbers in mind. Pay yourself first and start by saving 10 percent of what you earn. Gradually increase that amount as your income increases. The amount you set aside for investments also depends on your situation.

As you start to earn more and more money, you can start putting aside 20%, then 30%, and eventually 40% of your income- and ultimately, you’ll get to a point where you’re only spending a small percentage of what you earn. That’s your goal. That’s called “paying yourself”.

3. Wealthy People are Constantly Improving Their Earning Ability

One of the most important habits of rich people is they are always improving their earning ability. Poor people e-mail me and say, “Dan, I want to pay myself first, but I’m not making enough money. I’m only making a few thousand per month, so I only have enough money to pay my bills and that’s it. How am I going to pay myself first?”

And I remind those people that first and foremost, you have to develop the habit of paying yourself first. Even if it’s just a tiny percentage, you have to pay yourself first. If you don’t develop the habit of paying yourself first while you’re making $30,000 per year and can barely cover your bills, then I guarantee you still won’t be paying yourself when you’re making a million dollars per year.

In order to pay yourself more and more each year, putting more and more of your money into investments, you must constantly improve your earning ability. You need to find ways to add more value to the marketplace. By constantly improving, every single year your income will go up.

Develop Your High Income Skills

How can you increase your earning ability? Develop a high income skill. A high income skill can earn you an income of $10,000 or more a month. For example, high ticket sales, copywriting, digital marketing, platform speaking, or investing. These skills can be learned in a matter of weeks.

You can apply a high income skill in multiple industries, working full time at a job, or to start your own business. In the gig economy, you can use your skills to freelance and earn a side income to supplement a full time job. Freelancing, or having a side gig, is becoming more common, so it is becoming easier to get started.

It’s important to find a way to add value to the marketplace. What job skills does the marketplace need? Sales is one industry that will always be lucrative. If you’re in high ticket sales, you have the potential to increase the revenue of a company and increase your value.

When you are focused on increasing your earning ability, you will also be focused on keeping ahead of inflation. Wages for workers have barely changed over time. You can’t depend on an annual raise to help you keep pace with the rising cost of living because wage growth has been stagnant.

Since 2013, it has increased 2 to 3 percent. But when you compare those numbers to the 1970s and 1980s, when wages increased 7 to 9 percent a year, that rise is small. Research has shown that “today’s average hourly wage has just about the same purchasing power it did in 1978.” So despite the gradual rise in hourly wages, people aren’t actually making more than they did decades ago!

In comparison, the biggest wage gains have been going to the highest wage earners who have made nearly five times the gain in income over time. Pew Research observed that “among people in the top tenth of the distribution, real wages have risen a cumulative 15.7%, to $2,112 a week – nearly five times the usual weekly earnings of the bottom tenth ($426).”

The key to increasing your earning potential is to increase your value to the marketplace by developing skills that will earn you a higher income.

Using Leverage

Another way to increase your earning potential is through leverage. If you have your own business and your income has stayed the same for the last three years, it means you’re not thinking. You’re not learning. You’re not improving.

How can you take your business to the next level? Every single year, your income can increase as long as you seek to constantly learn, think, grow – and apply leverage. Even if you don’t have your own business, you can still take advantage of leverage to increase your income.

What is leverage? It’s a business strategy where you borrow money to make money. Rich people are always looking for ways to use leverage in order to improve their earning ability.

I applied leverage by building a highly-skilled team, so that together we could reach our higher potential. You can use leverage to start a business without using your own money. Another way is to build a network that will help you to find better job opportunities.

Rich people never stop looking for and applying leverage. Maybe we’ll apply leverage through relationships with talented individuals, through marketing or through learning another high-income skill.


Following the habits of rich people is one way to deal with the financial struggles you may be facing now. Doing this may involve starting new habits, which means changing your routine for several days and getting uncomfortable with a new way of doing things.

The first habit is to count your money. Develop your financial literacy and learn how to make, manage and invest your wealth. Constantly check your cash flow and expenses. Ask yourself if there are improvements you can make to improve your cash flow.

The second habit is to pay yourself first. This is not the same as rewarding yourself. Buying a car or going on vacation is a reward. You want to set aside a percentage of what you earn in savings and investments. Over time, increase the amount you set aside from 10% and work your way to 40%.

The third habit is to constantly improve your earning ability. Wages have stayed stagnant over time, if you factor in inflation. We can’t rely on an annual raise to increase our income potential. Learning a high income skill and finding a way to provide more value to the marketplace are more reliable ways to increase your yearly earnings. Another way is to use leverage, whether you are employed at a job or self employed.

Now that you know the 3 best habits of rich people, you can start developing the habits of wealthy and successful people. I’d like to leave you with a quote: “You do not decide your future. You decide your habits, and your habits decide your future.”

If you want to improve by learning a valuable, high-income skill, you should click here to enroll in my High-Ticket Closer™ Certification Program. This is my private, 7-week mentorship program where I’ll provide you with coaching every week. I’ll give you all the tools and insider information you need to make $100K-500K a year.