Building substantial wealth often goes beyond just earning and saving more; it's deeply tied to how individuals manage their time, money, and relationships. According to author and financial planner Tom Corley, specific daily habits play a crucial role in accelerating wealth accumulation.
Understanding the Rich Habits Study
Over a five-year period, Corley meticulously studied the daily routines of 233 wealthy individuals, including 177 self-made millionaires, alongside 128 people living in poverty. His comprehensive "Rich Habits" research, supported by other independent studies, highlighted six common habits prevalent among successful entrepreneurs and wealthy individuals.
Entrepreneurship vs. Traditional Saving
Corley's study revealed a significant difference in the pace of wealth creation between those who built fortunes through traditional saving and investing versus those who pursued entrepreneurship. "Saver-Investors" typically took an average of 32 years to amass $3.3 million. In stark contrast, entrepreneurs reached an average of $7.4 million in just 12 years, demonstrating the accelerated potential of business ownership.
However, entrepreneurship alone isn't a guaranteed path to riches. Corley emphasizes that certain daily habits are essential for entrepreneurs to maximize their opportunities.
The Six Habits That Separate the Wealthy
1. Set Clear Goals and Act on Them
Successful individuals, especially entrepreneurs, consistently set specific, long-term goals and actively work towards them daily. Corley found that 80% of self-made millionaires adhered to this practice. For business owners, this could mean defining revenue targets, planning product launches, or identifying specific milestones. A "do it now" mindset helps them translate plans into immediate action, avoiding procrastination. A practical approach involves breaking down a major annual goal into monthly and daily targets.
2. Keep Learning Every Day
A commitment to continuous self-education is a hallmark of the wealthy. Corley's research showed that 88% of millionaires dedicated at least 30 minutes daily to learning, encompassing personal development books and industry trend analysis. This contrasts sharply with the poverty group, where 77% spent over an hour daily on what Corley classified as "time-wasters" like excessive TV, streaming, or social media. Replacing even a short period of passive consumption with active learning can foster a valuable habit.
3. Spend Less and Reinvest More
Frugality emerged as a consistent theme. While saver-investor millionaires typically saved and invested 20% or more of their net income, entrepreneurs often applied frugality differently. They focused on controlling business expenses to reinvest profits back into their companies. Corley suggests allocating no more than 25% of net income to housing, 15% to food, 10% to entertainment, and 5% to vacations, freeing up capital for growth areas like marketing, product development, or business reserves.
4. Build Strong Relationships
The people an entrepreneur surrounds themselves with significantly impact their access to knowledge, opportunities, and advice. Corley found that 93% of millionaires with mentors attributed their success largely to that guidance. Mentors offer insights, share processes, and connect entrepreneurs to influential networks. Cultivating these "Power Relationships"—which include optimistic, success-minded peers and mentors—is crucial, and it can also involve mentoring others.
5. Take Calculated Risks
While starting a business inherently involves uncertainty, successful entrepreneurs don't take reckless risks. Instead, they thoroughly research opportunities, seek expert advice, and test ideas before committing significant resources. Corley's study noted that 27% of millionaires had experienced at least one business failure but learned valuable lessons from these setbacks. Piloting ideas on a small scale, studying market dynamics, and seeking counsel can mitigate potential downsides.
6. Look After Your Health and Mindset
Wealth creation is a long-term endeavor, demanding physical and mental stamina. Corley discovered that 76% of millionaires in his study exercised regularly. His research also emphasized the importance of "rich thinking," which involves managing negative emotions and maintaining an optimistic outlook. Regular exercise, coupled with practices like gratitude, helps sustain energy, focus, and a positive mindset essential for enduring the journey to wealth.
Passion, Persistence, and Broader Context
Beyond specific routines, passion provides the sustained energy and focus needed to navigate setbacks and rejections. While disciplined habits compound over time, Corley's research indicates that achieving multimillion-dollar wealth through entrepreneurship still takes an average of 12 years.
It's important to acknowledge that Corley's findings, while insightful regarding individual behaviors, have faced criticism for not fully accounting for systemic factors and demographic differences that also influence wealth. However, his work primarily focuses on actionable behaviors individuals can control—how they spend their time, manage money, build relationships, and make decisions—offering a practical framework for both creating and sustaining wealth.