Your amazing online presence is right this way.

Create your profile
Capture who you are, what you do, and where you're going. All in one place.


10 Habits of High-Net-Worth Women

Viewing on Levo:

Only you can see this list

As a financial advisor, I’ve occasionally found myself feeling envious of certain clients. Not because of their wealth, but because they were disciplined and determined enough to do all the right things that enabled them to accumulate their wealth and, in many cases, retire early. Despite my expertise, I, like a lot of people, sometimes struggle not to do the wrong things that make being rich, let alone retiring at all, a pipe dream.

Financially responsible and successful people don’t build their wealth by accident—or overnight. Becoming rich takes serious willpower and long-term vision. You have to be able to keep your eye on the prize of financial freedom, be willing to sacrifice your present wants for the sake of your future, and develop good habits to win. Here are 10 habits you can start putting into practice now.

Start Early

As the old saying goes: The early bird catches the worm—or, in this case, gets to retire in style. The sooner you put your money to work, the more time it has to grow. Earning a paycheck, whether you’re self-employed or work for a company, means the opportunity to contribute to an IRA, which you should seize ASAP. If you’re fortunate enough to get a job with a company that offers a matching contribution to their retirement plan, you need to make it a priority to enroll in the plan as soon as you’re eligible. It can be the difference between retiring early and never retiring.

Think about this: If you invested $10,000 and left it to grow for 40 years, assuming an average return per year of 8 percent, you would end up with over $217,000. But if you waited 10 years and invested $20,000—twice as much—you’d only end up with just over $200,000.

Whatever your situation might be, saving and investing money today is better than waiting until tomorrow. Start now.


You can be your own worst enemy when it comes to financial success. It’s all too easy to procrastinate and neglect what needs to be done and, in the meantime, give in to temptation and spend more than you should. It’s the perfect recipe for not becoming rich.

The best way to protect yourself from yourself is to automate your savings. That means setting up recurring transfers on a regular basis from your checking account to your savings and investment accounts. You can also establish automatic deductions from your paycheck to your employer-sponsored retirement plan. This way, you force yourself to avoid bad money habits and save what you would likely otherwise spend. If you haven’t already, set aside 15 minutes on your calendar to do it. Not later; now. Your rich future self will thank you.

Maximize Contributions

When it comes to retirement account contributions, you’ve probably been told to start small and then try to increase the amount by at least 1 percent every year until you max out. If you’ve been procrastinating, then yes, even a small starting contribution is better than none. The problem is that small efforts can lead to small results. If you want to be rich, you have to save like you mean it. And that means contributing the max amount allowed from the get-go—and at least as much as your employer will match in your 401(k).

This is especially true if you’re starting to save later in life and need to play catch-up. You might worry that maxing out your contributions will squeeze your cash flow too tightly, but it’s easier to get in the habit of spending less if you don’t have that extra money to spend in the first place. It’s much harder to increasingly scale back your budget year after year to accommodate for increasing contributions.

Never Carry Credit Card Balances

Revolving, high-interest debt is one of the biggest threats to your financial freedom. It can seriously drag you down, costing you thousands in unnecessary fees and interest charges—and preventing you from saving more. If you ever want to be rich, you have to ditch the bad habit of carrying credit card balances, along with the minimum payment mentality.

Instead, you need to learn how to use credit wisely rather than as a crutch, and commit to paying off your balances in full each month. Smart credit card holders know and practice the tricks to maximize rewards, points, discounts and monthly cash flow without getting in over their heads. Of course, living within your means is key to your success.

Live Like You’re Poor

Have you ever met someone who is unassuming and modest and then were surprised to learn that they’re actually rolling in dough? I had an older client who was stuck in 1983: He wore ugly brown suits and running shoes, drove a beat-up baby-blue Volvo station wagon and lived in the same modest house he bought 40 years ago. Turns out, this man was an uber-successful entrepreneur and multimillionaire—and even richer because of his humble habits.

Millionaires are all around us, and many of them are probably not who you would think. This is because they smartly live below their means and save their money rather than showcase it. Of course, it’s easy to live below your means when you have millions, but even if you have far less, getting into the habit of spending minimally now will help you have a lot more later. The trick is adopting a “less is more” mentality and sticking with it, even when your income and net worth increase in the future.

Avoid Temptation

The temptation to live large and beyond our means is all around us: TV, magazines, friends, family, colleagues, “the Joneses.” It’s nearly impossible to escape the pressure to spend, spend, and then spend some more. The problem is that overspending often leads to debt accumulation, undersaving, and long-term financial insecurity.

Force yourself to avoid negative financial influences as much as possible. That means going cold turkey: Avoid malls, unsubscribe from all those retail emails and don’t sign up for new ones, and say no to invitations that you know will cost you.

Then, replace these temptations with things that motivate you.

Be Goal-Oriented

Goals inspire us, motivate us, and give us purpose. Many of us have common goals, such as paying off debt, buying a house, and retiring by a certain age. Maybe you have another goal of starting your own business or buying a second home. Unfortunately, goals are easily overshadowed by the daily stresses of life and are all too often forgotten and neglected. When goals are just fleeting thoughts in your mind, they lose their meaning and influence over your behavior. This leads to bad financial habits, and your dream of becoming rich stays just that—a dream.

To make it a reality, stay focused on your goals by committing the time to think about them, prioritize them, and assign a target saving amount to each of them if possible. Then you should display your goals in places where you can be reminded on a regular basis, which will keep you accountable and help you stay on track.

Get Educated

Successful investors take the time to study key financial concepts, learn the dos and don’ts and stay abreast of current trends. They take advantage of opportunities to strengthen and expand their understanding and expose themselves to financial information on a daily basis. Take a cue from them and subscribe to The Wall Street Journal, watch CNBC, pick up Fortune or SmartMoney instead of a gossip magazine, and follow financial experts on Twitter. Become a devoted student of money, and you can master the science of getting rich.

Be careful not to get overwhelmed. Only follow advice from credible sources so you don’t fall victim to progress paralysis or unsuitable and potentially dangerous investments.

Diversify Your Portfolio

Successful investors also know not to put all of their money eggs in one basket—or two baskets, for that matter. They spread their wealth across a variety of investments, from stocks, mutual funds, ETFs, and bonds to real estate, collectibles, and startups. A diversified portfolio means you can potentially take advantage of multiple sources of growth and protect yourself from financial ruin if one of your investments bombs.

An easy way to achieve diversification is to invest in an asset allocation fund, such as a target-date fund or “life strategy” fund that’s based on your risk tolerance. And if you don’t have the means to buy property outright, you can explore investing in real estate mutual funds, ETFs, or real estate investment trusts (REITs), which can even offer steady income in some cases. Learn more about crowdfunding, which now gives the average investor the ability to support startup companies. Just be careful not to concentrate your money too heavily in any one investment.

Spend Money to Make Money

It’s true that there’s a price to pay for wealth, but unless you’re Warren Buffett, it’s not gambling—and losing—on stock-picking. Impulse, naïveté, and emotions, particularly greed and fear, can seriously hinder your chances of being rich if you let them. The best way to protect yourself and get a step up on your financial goals is to first invest in a team of financial professionals. This means hiring a qualified and experienced financial advisor, accountant, and in complex cases, an estate planner. Yes, working with pros will cost you, and you can still do some DIY investing, but their objectivity, expertise, personalized guidance, and ongoing monitoring can be well worth it—and relieve you of the huge burden of figuring it all out on your own.

Make sure that you interview several candidates so you can find pros you trust, feel comfortable with, and whose approach is a good fit for your situation. And even if you work with an advisor, make sure that you’re still involved and aware of where your money is going—and why.

More from DailyWorth:

Photo: Matt Mawson/Getty Images


Finance Lifestyle #Female Executives
Viewing on Levo:

Only you can see this list

Join the conversation:

Not sure that the above is female specific as much general steps high net worth individuals take. I also view this as appropriate for corporate professionals, and/or those working for someone else. I say that as it does not address strategies entrepreneurs need to use as they put all of their financial security on the line to follow their passions, i.e. never use your own money (a strategy big corporations use), and such. I am proud to day I have executed on all of the above.... however when I decided to risk it all to follow my passion, several of the above had to go out the window - and I was okay with that. Another strategy would be to always focus on replacing what you had to give up.....

Leila Bates
Leila Bates

It would a great new years resolution checklist!


You have a refreshing candour about your writing and I like it. From personal experience I have one disagreement though. I met a very wealthy businessman from India and he taught me one thing. If someone is bad at handling debt you do not tell them to cut up the credit card you teach them to manage it. The second thing he taught me is that borrowed money is a sign of credit worthiness and if you borrow money use it to make more money. So use all the credit you can get to generate extra income on profitable business interventions. Cutting up credit cards is just so 'female' and bottom end. we can never learn to play in the big stakes if we fret about such trivialities. I followed his advice and I purchase items which add value to my portfolio: investments or potential and resources. My 'debt' has got me high loan potential when I go to the bank. Bank Managers do not hesitate to give me loans. I use these wisely. Women historically battle to get loans. It takes a loan to get a loan. We need to stop thinking like losers.

Maria N. De Las Heras
Maria N. De Las Heras

Truth ~

I need to put a little more effort into every single one of these tips! Living like I'm poor is something I'm working on right now. I spent the last 4-5 months being unemployed and being very frugal as a result -- now it's just a matter of keeping up those frugal habits even though I have an income!

Be disciplined with daily goals related to your visit of the future. Your goals will pull you to where you want to go and give you purpose.

Make Levo Yours

Levo is the best place to contribute your inspirational thought leadership. Begin elevating the purposeful careers of our community by sharing your insights, data, and stories today.