16 Rich Habits

Your autopilot mode can make you wealthy or poor.

Tom Corley

September 8, 2016
Intelligence, talent and charm are great, but more often than not these aren’t what separate
the wealthiest among us from the poorest.

Instead, the differences are in our daily habits. Do you realize that these subconscious,
second-nature activities make up 40 percent of our waking hours? That means that two out
of every five minutes, all day and every day, we operate on autopilot. It’s true: Habits are
neural pathways stored in the basal ganglia, a golf ball-size mass of tissue right in the
center of our brains, in the limbic system.

This neural fast lane is meant to save the brain energy: When a habit is formed and stored
in this region, the parts of the brain involved in deeper decision-making cease to fully
participate in the activity. However, we all know there are good habits and bad habits.

I spent years studying the difference between the habits of our country’s rich and poor,
questioning hundreds of individuals. On the rich side, these were people with annual gross
income north of $160,000 and net liquid assets of $3.2 million or more. I defined the lesser-
off as those with gross income of $35,000 or less and no more than $5,000 in liquid assets.
When I was done, I analyzed the results of my research and boiled down the responses to
create a picture of what allows the wealthy to prosper where others do not. My ensuing
book became a sort of instruction manual for how to become wealthy.

Related: 3 Money Habits That Separate the Rich From the Poor

The gulf between Rich Habits and Poverty Habits is staggering. If you’re well off already,
chances are you already adhere to most of these Rich Habits. Integrating the ones you’ve
neglected will push you further. But be assured: If you’re doing fine now without minding
these principles, it’ll catch up to you.

Some of the differences between rich and poor are obvious, while others are a little more
surprising. Here are the most important Rich Habits you can take up to reach and maintain
your wealth potential.

1. Live within your means.

Wealthy people avoid overspending by paying their future selves first. They save 20 percent
of their net income and live on the remaining 80 percent.

Among those who are struggling financially, almost all are living above their means. They
spend more than they earn, and their debt is overwhelming them. If you want to end your
financial struggles, you need to make a habit of saving and budgeting what you spend. Here
are some sensible ways to budget your monthly net pay:

 Spend no more than 25 percent on housing, no matter if you own or rent.

 Spend no more than 15 percent on food.
 Limit entertainment—bars, movies, miniature golf, whatever—to no more than 10 percent of
your spending. Vacations should account for no more than 5 percent of your annual net pay.
 Spend no more than 5 percent on auto loans, and never lease. Ninety-four percent of the
wealthy buy instead of leasing. These folks keep their cars until the wheels fall off, taking
great care along the way so that they save money in the long run.
 Stay away from accumulating credit card debt. If you are doing this, it’s a clear sign that you
need to cut back somewhere.
 Think of savings and investments as two completely different things. You should never lose
money on your savings. Try to stash six months of living expenses in an emergency fund in
case you lose your job or your business goes belly-up.
 Contribute as much as you can afford to a retirement plan. If you work for a company that
matches your contributions up to a certain percentage, great. Always take that free money
when you can get it.

Related: The Best Money Advice I Ever Heard

2. Don’t gamble.
Talk about a sucker bet: Every week, 77 percent of those who struggle financially play the
lottery. Hardly anyone who is wealthy plays the numbers. Wealthy people do not rely on
random good luck for their wealth. They create their own good luck. If you still want to bet
after knowing the risk, use money from your entertainment budget.

3. Read every day.

Reading information that will increase your knowledge about your business or career will
make you more valuable to colleagues, customers or clients. Among wealthy people, 88
percent read 30 minutes or more every day. Just as important, they make good use of their
reading time:

 63 percent listen to audiobooks during their commute.

 79 percent read educational career-related material.
 55 percent read for personal development.
 58 percent read biographies of successful people.
 94 percent read current events.
  51 percent read about history.
 11 percent—only 11 percent—read purely for entertainment purposes.

The reason successful people read is to improve themselves. This separates them from the
competition. By increasing their knowledge, they are able to see more opportunities, which
translate into more money. Comparatively speaking, only one in 50 of those struggling
financially engages in this daily self-improvement reading, and as a result the poor don’t
grow professionally and are among the first to be fired or downsized.

Related: 25 Books for Success

4. Forget the boob tube and spend less time surfing

the internet.
How much of your valuable time do you lose parked in front of a screen? Two-thirds of
wealthy people watch less than an hour of TV a day and almost that many—63 percent—
spend less than an hour a day on the internet unless it is job-related.

Instead, these successful people use their free time engaged in personal development,
networking, volunteering, working side jobs or side businesses, or pursuing some goal that
will lead to rewards down the road. But 77 percent of those struggling financially spend an
hour or more a day watching TV, and 74 percent spend an hour or more a day using the
internet recreationally.

5. Control your emotions.

Not every thought needs to come out of your mouth. Not every emotion needs to be
expressed. When you say whatever is on your mind, you risk hurting others. Loose lips are
a habit for 69 percent of those who struggle financially. Conversely, 94 percent of wealthy
people filter their emotions. They understand that letting emotions control them can destroy
relationships at work and at home. Wait to say what’s on your mind until you’re calm and
have had time to look at the situation objectively.

Fear is perhaps the most important negative emotion to control. Any change, even positive
changes such as marriage or a promotion, can prompt feelings of fear. Wealthy people
have conditioned their minds to overcome these thoughts, while those who struggle
financially give in to fear and allow it to hold them back.
Whether you fear change, making mistakes, taking risks or simply failure, conquering these
emotions is about leaning in just a little until you build up confidence. It’s amazing how
much confidence helps.

Related: 10 Ways Successful People Stay Calm

6. Network and volunteer regularly.

You’ll build valuable relationships that can result in more customers or clients, or help you
land a better job if you spend time pressing the flesh and giving back in your community.
Almost three-quarters of wealthy people network and volunteer a minimum of five hours a
month. Among those struggling financially, only one in 10 does this.

One perk of volunteering is the company you’ll keep. Very often the boards and committees
of nonprofits are made up of wealthy, successful people. Developing personal relationships
with these folks will often result in future business relationships.

7. Go above and beyond in work and business.

Unsuccessful people have “it’s not in my job description” syndrome. Consequently, they are
never given more responsibility, and their wages grow very little from year to year—if they
keep their jobs at all. Wealthy individuals, on the other hand, make themselves invaluable to
their employers or customers, writing articles related to their industry, speaking at industry
events and networking. Successful people work hard to achieve the mutual goals of their
employers or their businesses.

8. Set goals, not wishes.

You cannot control the outcome of a wish, but you can control the outcome of a goal.

Every year, 70 percent of the wealthy pursue at least one major goal. Only 3 percent of
those struggling to make ends meet do this.

Related: 5 Daily Habits of Highly Successful People

9. Avoid procrastination.
Successful people understand that procrastination impairs quality; creates dissatisfied
employers, customers or clients; and damages other nonbusiness relationships. Here are
five strategies that will help you avoid procrastination:
  Create daily “to-do” lists. These are your daily goals. You want to complete 70 percent or
more of your “to-do” items every day.
 Have a “daily five.” These activities represent the crucial things that will help you get closer
to realizing some major purpose or goal.
 Set and communicate artificial deadlines. There’s nothing wrong with finishing early.
 Have accountability partners. These are people you team with to pursue a big goal.
Communicate with them at least every week, and make sure they hold your feet to the fire.
 Say a “do it now” affirmation. This is a self-nagging technique. Repeat the words “do it now”
over and over again until you begin a task or project.

10. Talk less and listen more.

A 5-to-1 ratio is about right: You should listen to others five minutes for every one minute
that you speak. Wealthy people are good communicators because they are good listeners.
They understand that you can learn and educate yourself only by listening to what other
people have to say. The more you learn about your relationships, the more you can help
them.

11. Avoid toxic people.

We are only as successful as the people we spend the most time with. Of wealthy,
successful people, 86 percent associate with other successful people. But 96 percent of
those struggling financially stick with others struggling financially.

If you want to end your financial struggles, you need to evaluate each of your relationships
and determine if they are a Rich Relationship (with someone who can help you up) or a
Poverty Relationship (with someone holding you back). Start spending more and more time
on your Rich Relationships and less on your Poverty Relationships. Rich Relationships can
help you find a better job, refer new business to you or open doors of opportunity.

12. Don’t give up.

Those who are successful in life have three things in common: focus, persistence and
patience. They simply do not quit chasing their big goals. Those who struggle financially
stop short.

13. Set aside the self-limiting beliefs holding you

back.
If you’re hurting financially, you’ve probably told yourself some of these untruths
before: Poor people can’t become rich. Rich people have good luck and poor people have
bad luck. I’m not smart. I can’t do anything right. I fail at everything I try.
Each one of these self-limiting beliefs alters your behavior in a negative way. Almost four
out of five wealthy people attribute their success in life to their beliefs. Change your
negative beliefs into positive affirmations by reading lessons from the greats of personal
development, like Napoleon Hill, Dale Carnegie and Jim Rohn.

Related: Doubtbusters: Erase Self-Limiting Beliefs

14. Get a mentor.

Among the wealthy, 93 percent who had a mentor attributed their success to that person.
Mentors regularly and actively participate in your growth by teaching you what to do and
what not to do. Finding such a teacher is one of the best and least painful ways to become
rich.

If you know your goals, find someone who has already achieved them. You’ll be amazed by
how many people want to lend a helping hand.

15. Eliminate “bad luck” from your vocabulary.

Those struggling financially in life have a way of creating bad luck for themselves. It’s a
byproduct of their habits. Poverty Habits, repeated over and over are like snowflakes on a
mountainside. In time, these snowflakes build up until the inevitable avalanche—a
preventable medical problem, a lost job, a failed marriage, a broken business relationship or
a bankruptcy.

Conversely, successful people create their own unique type of good luck. Their positive
habits lead to opportunities such as promotions, bonuses, new business and good health.

16. Know your main purpose.

It’s the last Rich Habit, but it might be the most important. Those people who pursue a
dream or a main purpose in life are by far the wealthiest and happiest among us. Because
they love what they do for a living, they are happy to devote more hours each day driving
toward their purpose.

Odds are, if you are not making sufficient income at your job, it is because you are doing
something you do not particularly like. When you can earn a sufficient income doing
something you enjoy, you have found your main purpose.

Believe it or not, finding this purpose is easy. Here’s the process:

1. Make a list of everything you can remember that made you happy.
2. Highlight those items on your list that involve a skill, and identify that skill.
3. Rank the top 10 highlighted items in the order of joy they bring to you. Whatever makes
you happiest of all gets 10 big points.
4. Now rank the top 10 highlighted items in terms of their income potential. The most
lucrative skill of all is worth 10 points.
5. Total the two ranked columns. The highest score represents a potential main purpose in
your life. Presto!

As you can see, the differences between rich and poor are simple—sometimes intuitive—
but not insignificant. Aim to take up all 16 of these habits, and you’re almost guaranteed to
become better off.

7 'rich habits' of highly successful people, from a man who studied them for 25 years
Kathleen Elkins | @kathleen_elk 10:40 AM ET Fri, 7 April 2017
Self-made billionaires Warren Buffett and Bill Gates
Bloomberg | Getty Images
Self-made billionaires Warren Buffett and Bill Gates
Socio-economist Randall Bell, Ph.D., has been studying success for 25 years, analyzing the core
characteristics that all great achievers have in common.

Part of his research included surveying more than 5,000 people across the world, including
professionals, students, retirees, the unemployed and multi-millionaires. "We studied dozens of
rituals ranging from writing thank-you notes to eating together as a family," he writes in his new
book, "Me We Do Be." "We then statistically correlated various habits with different measures
of success."

It turns out that what you do every day matters. The most successful people follow specific daily
rituals and routines, or what he calls "rich habits."

Here are seven of them:

They exercise

"Those who exercised, even for 15 minutes a day, dominated statistically in every single measure
of success," writes Bell.
Take self-made billionaire Richard Branson, who wakes up around 5 a.m. to work out before
starting his day. "I definitely can achieve twice as much by keeping fit," he tells
FourHourBodyPress. "It keeps the brain functioning well."

Branson is far from the only successful individual who prioritizes fitness. Dozens of today's top
business leaders, from Facebook's Mark Zuckerberg to media guru Oprah Winfrey, make time in
their busy schedules for exercise.

Sir Richard Branson

Julian Finney | Getty Images
Sir Richard Branson
They make their bed

"Those who do their chores and keep their living space tidier tend to make more money," writes
Bell. "For example, those who make their bed in the morning are up to 206.8 percent more likely
to be millionaires." It puts your mind into a productive mindset, he explains.

Author Charles Duhigg calls it a "keystone habit" in his bestseller, "The Power of Habit":
"Making your bed every morning is correlated with better productivity, a greater sense of well-
being, and stronger skills at sticking with a budget."

How rich people save

They read

"Reading dramatically correlates with higher education and income, as well as overall
happiness," writes Bell. "Those who read seven or more books per year are more than 122
percent more likely to be millionaires as opposed to those who never read or only read one to
three [books]."

Take the richest man in the world, Bill Gates, who reads 50 books a year, or Warren Buffett, who
spends as much as 80% of his day reading.

Break your snooze habit with this 5-step strategy Break your snooze habit with this 5-step
strategy
They wake up early

Bell's not the only one to find that successful people start the day before the average person.
In a five-year study of 177 self-made millionaires, author Thomas C. Corley found that nearly 50
percent of them woke up at least three hours before their work day actually began.

It's a strategy to deal with inevitable daily disruptions, such as a meeting that went too long, and
still have time to accomplish everything you set out to do that day, Corley writes in his book,
"Change Your Habits, Change Your Life." "Getting up at five in the morning to tackle the top
three things you want to accomplish in your day allows you to regain control of your life," he
explains.
"It gives you a sense of confidence that you, indeed, direct your life."

This is why Tim Cook and other successful leaders wake up around 4:00 AM
They have good etiquette

Bell found that remembering the little things, such as wishing people happy birthday or sending
thank you notes, correlates with success.

Corley found a similar thing in his research. "Self-made millionaires have mastered certain rules
of etiquette principles you have to master if you want to be a success," he writes in his book.
These include acknowledging important life events such as birthdays and weddings, having good
table manners, and dressing appropriately depending on the social setting.

They prioritize their relationships

"Putting an effort into romance has benefits," Bell writes. "Those who are in satisfying romantic
relationships are far more likely to be happy overall and make more money."

Simply making time for family dinner can go a long way, Bell explains in a TED talk: "Those
who had regular dinner together as a family are 41% more likely to be happy and 43% more
likely to earn over $100,000 a year."

Priscilla Chan and Mark Zuckerberg at the White House on September 25, 2015.
Priscilla Chan and Mark Zuckerberg at the White House on September 25, 2015.
They plan out the day and write things down

"Those who maintain both a calendar and to-do list are 289 percent more likely to be
millionaires, as compared with those who have no real set schedule," writes Bell. He also found
that successful people "document insights."
Case in point: Self-made billionaires Bill Gates and Richard Branson are devoted note-takers.
"When inspiration calls, you've got to capture it," says Branson.

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What you do today matters.

In fact, your daily habits may be a major determinant of your wealth.

"The metaphor I like is the avalanche," says Thomas Corley, the author of "Rich Habits: The
Daily Success Habits Of Wealthy Individuals." "These habits are like snowflakes — they build
up, and then you have an avalanche of success."

Corley spent five years studying the lives of both rich people (defined as having an annual
income of $160,000 or more and a liquid net worth of $3.2 million or more) and poor people
(defined as having an annual income of $35,000 or less and a liquid net worth of $5,000 or less).

He managed to segment out what he calls "rich habits" and "poverty habits," meaning the
tendencies of those who fit in each group. But, Corley explains, everyone has some rich habits
and some poverty habits. "The key is to get more than 50% to be rich habits," he says.
And what are those rich habits that are so influential? Here are a few:

Rich people always keep their goals in sight.

"I focus on my goals every day."
Rich people who agree: 62%
Poor people who agree: 6%

Not only do wealthy people set annual and monthly goals, but 67% of them put those goals in
writing. "It blew me away," says Corley. "I thought a goal was a broad objective, but the wealthy
said a wish is not a goal." A goal is only a goal, he says, if it has two things: It's achievable, and
there's a physical action you can take to pursue it.

And they know what needs to be done today.

"I maintain a daily to-do list."
Rich people who agree: 81%
Poor people who agree: 19%

Not only do the wealthy keep to-do lists, but 67% of them complete 70% or more of those listed
tasks each day.

They don't watch TV.

"I watch TV one hour or less per day."
Rich people who agree: 67%
Poor people who agree: 23%

Similarly, only 6% of the wealthy watch reality shows, compared to 78% of the poor. "The
common variable among the wealthy is how they make productive use of their time," explains
Corley. "They wealthy are not avoiding watching TV because they have some superior human
discipline or willpower. They just don't think about watching much TV because they are engaged
in some other habitual daily behavior — reading."

They read … but not for fun.

"I love reading."
Rich people who agree: 86%
Poor people who agree: 26%
Sure, rich people love reading, but they favor nonfiction — in particular, self-improvement
books. "The rich are voracious readers on how to improve themselves," says Corley. In fact, 88%
of them read for self-improvement for 30 minutes each day, compared to 2% of poor people.

Plus, they're big into audio books.

"I listen to audio books during the commute to work."
Rich people who agree: 63%
Poor people who agree: 5%

Even if you aren't into audiobooks, you can make the most of your commute with any of these
commute-friendly self-improvement activities.

They make a point of going above and beyond at the office.

"I do more than my job requires."
Rich people who agree: 81%
Poor people who agree: 17%

It's worth noting that while 86% of rich people (compared to 43% of poor) work an average of
50 or more hours a week, only 6% of the wealthy people surveyed found themselves unhappy
because of work.

They aren't hoping to win the jackpot.

"I play the lottery regularly."
Rich people who agree: 6%
Poor people who agree: 77%

That's not to say that the wealthy are always playing it safe with their money. "Most of these
people were business owners who put their own money on the table and took financial risks,"
explains Corley. "People like this aren't afraid to take risks."

They watch their waistline.

"I count calories every day."
Rich people who agree: 57%
Poor people who agree: 5%
Wealthy people value their health, says Corley. "One of the individuals in my study was about
68 and worth about $78 million. I asked why he didn't retire, and he looked at me like I was from
Mars. He said, 'I've spent the last 45 years exercising every single day and watching what I eat
because I knew the end of my career would be my biggest earning years.' If he can extend his
career four to five years beyond everyone else, that's about $7 million for him."

And they take care of their smiles.

"I floss every day."
Rich people who agree: 62%
Poor people who agree: 16%
10 Ways Rich People Think Differently
If you ask Thomas Corley, being rich has very little to do with luck and
everything to do with habits.
Corley, who spent five years monitoring and analyzing the daily activities
and habits of people both wealthy and living in poverty (233 wealthy and
128 poor, specifically), isolated what he calls "rich habits" — and many of
them are simply patterns of thought.
"I found in my research that wealthy people are by and large optimists,"
he says. "They practice gratitude and look at happiness like a habit."
Corley, who presents and explains many of his findings in his book "Rich
Habits: The Daily Success Habits Of Wealthy Individuals" and on his
website, defines "rich people" as those with an annual income of
$160,000 or more and a liquid net worth of $3.2 million or more, and
"poor people" as those with an annual income of $35,000 or less and a
liquid net worth of $5,000 or less.
Here are 10 ways Corley found that rich people think differently, based
on statements with which they identify.

1. Rich people believe their habits have a major impact

on their lives.
"Daily habits are critical to financial success in life."
Rich people who agree: 52%
Poor people who agree: 3%
Wealthy people think that bad habits create detrimental luck and that
good habits create "opportunity luck," meaning they create the
opportunities for people to make their own luck. "When I looked at luck,"
Corley remembers, "a lot of rich people said they were lucky and a lot of
poor people said they were unlucky."

2. Rich people believe in the American dream.

"The American dream is no longer possible."
Rich people who agree: 2%
Poor people who agree: 87%
"The American Dream is the idea of unlimited potential, that you can
make it on your own," says Corley. In his study, the vast majority of rich
people believed that wealth is a big part of the American dream (94%),
and that the dream is still possible.

3. Rich people value relationships for professional and

personal growth.
"Relationships are critical to financial success."
Rich people who agree: 88%
Poor people who agree: 17%
Not only do rich people feel that their relationships are critical to their
success, but they put a lot of effort into maintaining them, making a
habit of calling up contacts to congratulate them on life events, wish
them a happy birthday, or reaching out just to say hello. "When I applied
the hello calls and the life event calls to my own life," recalls Corley, "I
ended up making another $60,000 as a result."

4. Rich people love meeting new people.

"I love meeting new people."
Rich people who agree: 68%
Poor people who agree: 11%
Hand in hand with valuing relationships comes making new ones. Rich
people both love meeting new people and believe that being liked is
important to financial success (in fact, it's a whopping 95% that believe
in the power of likability, compared to 9% of poor people).
5. Rich people think that saving is hugely important.
"Saving money is critical to financial success."
Rich people who agree: 88%
Poor people who agree: 52%
"Being wealthy is not just making a lot of money," explains Corley. "It's
saving a lot, and accumulating wealth. Many of the people I studied
aren't wealthy because they made a lot, but because they saved a lot."
He's trying to instill what he calls the 80/20 rule in his own children:
Save 20% of your income while living on 80%.

6. Rich people feel that they determine their path in life.

"I believe in fate."
Rich people who agree: 10%
Poor people who agree: 90%
Poor people are significantly more likely to believe that genetics are
important to becoming wealthy, and significantly less likely to believe
that they're the cause of their own financial status in life. "Most of the
wealthy people I talked to were businesspeople who weren't always
wealthy," Corley explains, "but they had this attitude that they could do
anything."

7. Rich people value creativity over intelligence.

"Creativity is critical to financial success."
Rich people who agree: 75%
Poor people who agree: 11%
While rich people are more likely to believe that creativity influences
success, poor people are more likely to think that being "intellectually
gifted" is critical. They're also more likely to believe that wealth is usually
accidental. "If you look at my stats, you'll find that a lot of wealthy people
were C students," says Corley. "There's more to wealth than just being
smart."

8. Rich people enjoy their jobs.

"I like (or liked) what I do for a living."
Rich people who agree: 85%
Poor people who agree: 2%
"Many of the wealthy in my study loved their job — it's not an accident,"
says Corley. In fact, 86% of the wealthy worked an average of 50 hours or
more per week (compared to 43% of the poor), and 81% say they do more
than their job requires (versus 17%). Corley says it's related to the idea of
creativity being important to financial success: "These people found a
creative pursuit that could turn into monetary value. When you engage
in a creative pursuit that can make money, the rewards are often
obscene."

9. Rich people believe that their health influences their

success.
"Good health is critical to financial success."
Rich people who agree: 85%
Poor people who agree: 13%
"One of the individuals in my study told me 'I can't make money in a
hospital bed,'" Corley remembers. "Wealthy people think that being
healthy means fewer sick days, which translates into more productivity
and more money."

10. Rich people are willing to take risks.

"I've taken a risk in search of wealth."
Rich people who agree: 63%
Poor people who agree: 6%
"A lot of the wealthy people in the study were business owners who
started their own businesses," Corley explains. "They became successes
because they were master self-educators who learned from the school of
hard knocks." In fact, 27% of the wealthy people in Corley's study admit
they've failed at least once in life or in business, compared with 2% of the
poor. "Failure is like scar tissue on the brain," Corley says. "The lessons
last forever."