Seven Financial Habits to Stay Wealthy Why Rich People Rarely “Act Rich”—And What They Do Instead

A friend recently told me that his ex-wife needed some money. When he asked her why, she said it was because her credit cards were maxed out and she needed the money to pay bills. When he asked her how that happened, she replied, “If you want to be rich, you’ve got to act rich.”

I understand why someone might think this, but this conversation got me thinking. What are some of the things that rich people do with their money (to stay rich) that aren’t quite so obvious? Here are seven things rich people do to stay wealthy.

They Don’t Max Out Their Credit Cards

The first thing rich people DON’T do is max out their credit cards. It’s the most expensive, least forgiving way to borrow money you can think of after a loan shark. Rich people do not consider credit cards as a way to live beyond their income. They may use cards for convenience, but they do not maintain ‘revolving” balances. Credit cards are paid off every month.

They Don’t Confuse Assets with Liabilities

The wealthy are careful to distinguish between assets (things that put money in their pockets) and liabilities (things that take money out). They know that high-end cars lose value the moment they’re driven off the lot, and sprawling homes come with hefty upkeep costs. Instead of loading up on liabilities, rich people focus on acquiring assets that grow their wealth over time, such as securities, income real estate, or businesses

They Don’t Chase the Latest Fads

It’s tempting to buy into the latest investment trends, whether it’s meme stocks, cryptocurrency, or tech gadgets. But most wealthy individuals avoid these pitfalls. While diversification is important, the rich rarely invest in what they don’t understand. They stick with solid, long-term investments and avoid the “get rich quick” mentality. True wealth is often built steadily, and long-shots rarely pan out.

They Don’t Ignore Their Cash Flow

Even those with seven- or eight-figure bank accounts pay close attention to their income and expenses. Rich people don’t just assume that their wealth will last forever. They stay on top of their finances, review their investments, and make adjustments as needed. Ignoring cash flow is a quick path to dwindling wealth.

They Don’t Put All Their Eggs in One Basket

While people dream of striking it big with a single stock or business venture, wealthy people know the dangers of being overexposed. They diversify their portfolios across different assets—stocks, bonds, real estate, and sometimes private investments. This protects them from the volatility of any single market or investment. Risk management is central to their financial strategy, ensuring that one bad bet doesn’t cost them their fortune.

They Seek Professional Advice

Many believe that managing money is just common sense, but the rich know the value of expert advice. They regularly consult with financial, tax and legal advisors. These specialists help them structure their investments, minimize taxes, and plan for the future. Trying to handle everything themselves is a mistake the wealthy rarely make—they understand that paying for advice can save them more money in the long run.

They Don’t Equate Spending with Success

Finally, most rich people are not in a rush to show off their wealth. They understand that flashy displays—designer clothes, expensive cars, over-the-top vacations—may impress others, but they do little to build lasting financial security. In fact, many of the truly wealthy are surprisingly frugal. They know that long-term wealth comes from prudent spending, disciplined saving, and smart investing—not from acting rich. When they purchase these luxury and status symbols, it’s because they know they can afford them or there is a business purpose (like hosting events).

Conclusion

The next time you’re tempted to “act rich,” remember that true wealth is less about how much you spend and more about how you manage your money. The truly wealthy are more likely to be inconspicuous about their wealth and turned off by people who make a show of spending to look wealthy. When you know the difference, it’s not hard to spot who’s who.

This column is prepared by Rick Brooks, CFA®, CFP®. Brooks is an owner and senior financial advisor at Blankinship & Foster, LLC, a wealth advisory firm specializing in financial planning and investment management for people preparing for retirement. Brooks can be reached at (858) 755-5166, or by email at rbrooks@bfadvisors.com.

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