I’ve been an entrepreneur for over 10 years, and if there’s one thing I’ve learned, it’s that managing money doesn’t have to be complicated.
Yet many of us fall into the trap of living paycheck to paycheck, constantly worrying about unexpected expenses, or simply never feeling totally secure with our finances.
Through my own experience—and by picking the brains of various experts—I’ve noticed that some people seem to glide through life without ever really struggling with money. How do they do it?
Below, I’m going to share seven habits that financially confident people practice. Every point is backed up by actual quotes from some of the most well-known financial gurus around.
These are the real deal—no fluff or made-up stats. If you’re ready to take control of your finances and build real wealth, read on.
1. They Always Know Where Their Money Is Going
Financially savvy people don’t let their money disappear into a black hole of takeout coffees, random online shopping, and endless subscription services. Instead, they keep track of every cent. The truth is, budgeting isn’t rocket science—but it does require discipline.
Financial Expert Quote
“A budget is telling your money where to go instead of wondering where it went.” – Dave Ramsey
This quote from Dave Ramsey, a personal finance author and radio host, hits the nail on the head. If you don’t have a plan for your money, you’ll wake up at the end of the month scratching your head about where it all went.
People who never struggle with money sit down—often with a spreadsheet or a budgeting app—and track their expenses. They categorize them (food, rent, travel, etc.) and constantly stay in the loop of what they spend.
When you do this, you’re giving yourself a roadmap to follow, and you’re more likely to make conscious spending choices.
2. They Pay Themselves First
If you’ve heard the phrase “pay yourself first,” you probably already know this principle is huge in personal finance. Essentially, this means putting a portion of your income straight into savings and investments before dealing with any other expenses. It’s like building a financial buffer for yourself right off the bat.
Financial Expert Quote
“Do not save what is left after spending; instead spend what is left after saving.” – Warren Buffett
Warren Buffett is one of the world’s most successful investors, so when he talks, I listen. By following this habit—taking a chunk of your income and saving it immediately—you ensure you always have something set aside.
People who never struggle with money do this religiously, turning it into a non-negotiable monthly “bill” they pay to their future selves.
3. They Live Below Their Means
One of the biggest traps we can fall into is lifestyle inflation—when you start earning more, you start spending more, too. I’ve been guilty of this myself: as soon as my business started taking off, my spending increased just as fast (hello, fancy gadgets and expensive coffee runs!). But the folks who consistently stay ahead financially know how to keep their lifestyle in check.
Financial Expert Quote
“If you’re not staying on top of your money, you are putting your financial well-being at risk.” – Suze Orman
Suze Orman’s words ring true: living below your means isn’t about depriving yourself, it’s about preserving your financial security. This might mean driving a reliable used car instead of a flashy new one, or living in a comfortable home instead of the biggest house on the block.
When you stay on top of your finances and resist the pressure to “keep up with the Joneses,” you set yourself up for a stress-free relationship with money.
4. They Invest in Their Financial Education
Ever noticed how people who are good with money love reading about money? It’s not a coincidence. Financially secure people often spend a portion of their time learning how to grow their wealth—whether that’s through reading personal finance books, following market trends, or even taking online courses on money management.
Financial Expert Quote
“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.” – Robert Kiyosaki
Robert Kiyosaki, author of Rich Dad Poor Dad, famously champions the importance of financial literacy. In other words, it doesn’t matter if you have a high salary if you don’t know how to manage, invest, and safeguard that money.
People who avoid money problems look at personal finance as a lifelong learning journey. They stay up to date on smart investing strategies, keep an eye on interest rates, and seek advice from experts when needed.
5. They Build an Emergency Fund
Life is full of surprises—some good, some not so great. You might get hit with an unexpected medical bill or your car might break down at the worst possible time. The difference between a financial meltdown and a minor inconvenience often comes down to whether you have an emergency fund.
Financial Expert Quote
“You must gain control over your money or the lack of it will forever control you.” – Dave Ramsey
Dave Ramsey’s cautionary words are a gentle reminder: control over money includes planning for the worst. Having three to six months of living expenses tucked away in a savings account can be a game-changer.
People who never struggle with money make sure they have that cushion. It gives them the peace of mind to handle unexpected costs without racking up debt or dipping into their long-term investments.
6. They Invest for the Long Haul
While day trading and “get rich quick” schemes might seem exciting, wealthy individuals usually prefer a slow and steady approach.
They invest consistently over time, letting compound interest do the heavy lifting. This could be in low-cost index funds, real estate, or even small businesses—but the mindset stays the same: patience is key.
Financial Expert Quote
“Someone’s sitting in the shade today because someone planted a tree a long time ago.” – Warren Buffett
Buffett’s quote is a perfect metaphor. You have to plant your “financial trees” early and nurture them regularly. Whether it’s setting up a monthly contribution to an ETF or contributing to your company’s retirement plan, people who never struggle with money are rarely swayed by market ups and downs.
They stay the course, knowing that over the long run, history shows the market generally trends upward.
7. They Focus on What Truly Matters (and Cut Out the Rest)
Financial freedom isn’t about pinching pennies on everything. It’s about knowing what adds genuine value to your life and what doesn’t. If something truly makes your life better, you can spend on it confidently. But if you’re spending on autopilot or to impress others, it might be time to scale back.
Financial Expert Quote
“Spend extravagantly on the things you love, and cut costs mercilessly on the things you don’t.” – Ramit Sethi
Ramit Sethi, author of I Will Teach You to Be Rich, popularized this principle. People who never seem to worry about money practice this habit in all areas of life. They might splurge on quality travel experiences or a hobby they’re passionate about, but they’ll also cancel five streaming services they barely use. This approach helps you stay excited about spending money while keeping your overall finances in great shape.
