5 Rules Rich People Live By (And Why You Should Follow Them)

It’s time to stop idolizing the rich and start learning from what they actually do. Wealthy individuals aren’t gods—they simply have different habits, privileges, and some might even be lucky. But I can’t change your luck or your privileges, but I can show you the habits of rich people. I know them personally because I’m a multi-millionaire myself, and my job is helping everyday people like you achieve financial success.

In this article, I’m breaking down the five rules that rich people live by and explaining why you should follow them too.

Rule #1: Do an X-ray on Your Finances

You can’t manage something you don’t deeply understand. Many of us make financial mistakes because we don’t truly understand where our money goes. Rich people, on the other hand, know exactly where their money is and how it’s being spent. They don’t track every tiny purchase, but they do track the big ones that matter. Ask yourself these seven questions:

1. How much do I make?
2. How much do I owe, and when will it be paid off?
3. What percent of my income am I saving every month?
4. What percent of my income am I investing every month?
5. What percent of my income am I paying for housing?
6. What things do I want to spend more or less on?
7. What are my invisible scripts or deeply held beliefs about money?

Knowing the answers to these questions will give you a clear picture of your financial landscape. If you don’t know where your money is going, it’s hard to put it to work for you. Rich people always know what’s coming next—financially and beyond.

Rule #2: Make Systems for Everything

Systems aren’t just for large corporations—they’re essential in personal finance too. When you rely on willpower alone, you’ll inevitably fail. Systems work when you can’t. Rich people don’t rely on motivation or effort to make things happen; they build systems that ensure their money flows automatically.

Examples:

• Automating savings and investments.
• Setting up automatic bill payments so you don’t even think about them.
• Creating a system for setting financial goals and tracking progress.

This approach takes the guesswork out of financial management and ensures that you stay on track even when life gets busy.

Rule #3: Plan Before You Need to Plan

Rich people plan ahead, and they plan for everything. Too often, we focus on the small savings that feel good in the moment (like cutting coupons or skipping coffee), but miss the bigger financial picture. Instead of stressing over small decisions, focus on your long-term goals.

For example:

• Do you know exactly how much you need for an emergency fund?
• Have you set clear, achievable financial goals like buying a home, saving for a vacation, or retirement?
• Do you know how long it will take to get there?

Planning ahead lets you take control of your financial future and create a strategy that doesn’t rely on luck or last-minute panic.

Rule #4: Follow the 80/20 Rule

The 80/20 Rule (also known as the Pareto Principle) tells us that 80% of our results come from 20% of our efforts. In personal finance, this means focusing on the big-ticket items that make the most impact—like housing costs and investments—rather than obsessing over small, insignificant details.

For example:

• Are you spending too much on housing? This is the #1 expense that drains wealth.
• Are you investing regularly and wisely? Focus on investments that will generate returns over time.
• Spend your time on high-value tasks that move the needle forward rather than sweating over trivial details.

By simplifying your financial approach and prioritizing the most important aspects, you’ll create more room for wealth-building activities.

Rule #5: Consider Value Over Cost

Rich people think beyond the cost of things and consider the value they provide. It’s not always about finding the cheapest option, but the one that offers the most value in the long run. For example, when it comes to your health, you might spend more on a personal trainer to learn the right techniques, but the value you gain from improved health and time saved is priceless.

Start thinking about how you can use your money to solve problems in your life. Hate doing laundry? Maybe outsourcing it will free up your time for more important tasks. Not sure if it’s worth spending a little more for a higher-quality product? Consider how it might improve your life or save you time down the road.

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These five rules are the foundation of a rich life—one that’s built on smart financial habits and long-term planning. The key is to start small, implement systems, and focus on the most important financial decisions that will get you closer to your goals. If you’re serious about becoming financially free, then it’s time to start living by these principles.