I’ve been in the entrepreneurial world for over a decade now, and I’ve learned quite a few lessons—some the hard way, some from mentors, and some by simply watching successful people do what they do best. One of the big eye-openers for me has been realizing that there’s a pattern among people who’ve managed to build a net worth of over a million dollars by the time they’re 40. They’re not all from the same industry, they’re not all business owners, and they’re definitely not all born into wealth.
So what sets these folks apart from everyone else? Why do they manage to accumulate a sizeable net worth while others struggle? After years of observation (and trying to implement some of their habits in my own life), I’ve narrowed it down to ten key things they tend to do differently.
1. They Start Early (and Don’t Fear Starting Small)
A lot of people think there’s some “perfect time” to start investing or building a side business. Maybe you’ve heard excuses like “I’ll start saving when I have a better job” or “I’ll think about a side hustle once the kids are older.” The truth is, I’ve noticed that people who become millionaires by 40 don’t really buy into that mentality. They know time is their best friend.
Starting early (or as soon as you can) doesn’t just refer to investing. It also applies to learning new skills, building connections, and developing good money habits. Even if it’s a small amount invested each month, or just a couple of hours a week honing a skill or creating something, the power of consistency over time is huge. That small, consistent effort can compound into something substantial.
My tip: Don’t wait for the perfect conditions. Begin now, even if it’s just with $50 a month or a small online gig on weekends.
2. They Build Multiple Streams of Income
Relying on a single source of income can be risky. If something happens—like a job loss or a dip in the market—you could find yourself in a tight spot. Most people I’ve met who reach a million-dollar net worth by 40 are big on diversifying their income. This could be anything from real estate rental income and dividends from stocks to online businesses or a consulting gig.
Personally, I started out with blogging and digital publishing, and then branched out into affiliate marketing, consulting, and some real estate. The beauty of multiple income streams is that if one hits a rough patch, you’ve got others that can keep you afloat.
My tip: Brainstorm one or two extra income ideas that fit with your skills or interests. Think small at first—maybe selling a digital product or offering a consulting service in your field.
3. They Save and Invest Strategically
This sounds obvious, right? But so many people overlook the importance of having a plan for saving and investing. Millionaires by 40 don’t just throw their money into random stocks because they heard a hot tip. They do their research, they understand their own risk tolerance, and they commit to systematic investing.
They also know that money in a bank savings account won’t grow much. Sure, it’s important to keep some cash in an emergency fund, but beyond that, they’re strategic about where to put their money—mutual funds, index funds, rental properties, or even high-growth startups (if they have the appetite for risk). The key is a well-thought-out plan rather than gambling.
My tip: Take some time to learn about basic investment strategies. If you’re clueless, find a financial advisor you trust or do some online courses to understand the basics of stocks, bonds, index funds, and real estate.
4. They Pay Themselves First
This is one of the oldest pieces of financial wisdom out there, and for good reason. If you wait until the end of the month to save or invest, there probably won’t be much left to put away. But if you automatically direct a percentage of each paycheck into your savings or investments (before you have a chance to spend it), you force yourself to live on what’s left.
Most of the millionaires I know do this religiously. They treat it like a non-negotiable bill that must be “paid” the moment money lands in their account. Whether it’s 10%, 20%, or more, that amount is put aside without fail.
My tip: Automate your savings. Set up your bank account so that a fixed portion of your income is transferred immediately to a savings or investment account every payday.
5. They Maintain a Healthy Relationship with Debt
Debt isn’t always a bad word, despite what some financial gurus might say. It’s about how you manage it. Millionaires by 40 don’t rack up credit card debt on unnecessary things and then scramble to make the minimum payment. If they use debt, it’s typically for investment purposes—like taking out a mortgage on a rental property or investing in a business that brings in more income.
High-interest consumer debt is generally avoided because it’s a quicksand that can swallow your finances. And even if they have some debt, they make sure they manage it responsibly.
My tip: If you have high-interest debt, make it a priority to pay it down as quickly as possible. At the same time, don’t be afraid of leveraging low-interest debt if it helps you build assets that can eventually pay for themselves.
6. They Keep Learning (Even When It’s Uncomfortable)
A consistent theme I see among these high-net-worth individuals is they’re always updating their knowledge. Whether it’s reading books, taking online courses, or attending workshops and conferences, they never get complacent. They don’t see education as a chore—they see it as an investment in themselves that can pay off in unexpected ways.
To be honest, there have been times when I thought I “knew enough” about my industry. But every time I pushed myself to dive deeper or learn something new—like SEO strategies or blockchain technology—I found fresh opportunities for growth.
My tip: Identify one skill relevant to your goals that you’d like to improve. Maybe it’s coding, digital marketing, real estate analysis, or even negotiation. Dedicate some time each week to get better at it.
7. They Focus on Discipline Over Motivation
Motivation can get you started, but discipline keeps you going when the excitement fades. Millionaires by 40 often talk more about their daily habits and less about “finding the motivation.” Motivation can come and go, but disciplined habits—like making that weekly investment, drafting that business proposal on schedule, or waking up early to tackle essential tasks—stay consistent.
I’ve struggled with motivation dips. Some mornings, I’d much rather stay in bed than go through emails or research new business ideas. But I learned that if I rely on discipline and keep my routine consistent, I keep progressing even when I’m not feeling super motivated.
My tip: Set up a routine that supports your goals. Make it as easy as possible to maintain your habits—like keeping your gym clothes next to your bed so you exercise first thing in the morning.
8. They Guard Their Time and Energy
Time is our most valuable asset—more valuable than money, in my opinion. People who hit that million-dollar mark by 40 are extremely protective of their time. They’re not afraid to say “no” to things that don’t align with their goals or values.
This doesn’t mean they’re workaholics who never have any fun. In fact, many of them schedule personal downtime and stick to it. But they’re also very mindful about not letting their schedule get clogged with unproductive meetings or pointless tasks.
My tip: Review how you spend your time daily. Identify any “time leaks” (like endless social media scrolling or unproductive meetings) and either eliminate or minimize them.
9. They Embrace Strategic Risk-Taking
Playing it safe all the time rarely leads to massive financial growth. But that doesn’t mean you should be reckless. The difference I see with successful wealth-builders is that they take calculated risks. They weigh the pros and cons, look at potential returns, and only then decide if the risk is worth it.
When I took the leap to start my own website years ago, it felt risky—no guaranteed income, no safety net, and a lot of uncertainties. But I crunched the numbers, assessed the market, and decided it was worth a shot. That initial risk opened the door to many opportunities I never would’ve seen otherwise.
My tip: Before you take any major risk—like quitting your job to go freelance or investing in a startup—do your homework. If the potential payoff aligns with the potential downside, it might be a risk worth taking.
10. They Build Relationships and Seek Out Mentors
No one succeeds entirely on their own. The most successful people I’ve met understand the power of relationships. They actively seek mentors—people who’ve walked the path before and can offer guidance, advice, and sometimes a crucial intro to the right person.
They also pay it forward. When they have some success, they help others, offer insights, and build a strong network based on mutual respect. This creates a supportive ecosystem that can open doors, provide resources, and give them a sounding board for new ideas.
My tip: Don’t be shy about reaching out to people you admire. You’d be surprised how many successful folks are willing to share advice if you approach them politely and genuinely. Also, look for ways you can help others, even if it’s just sharing knowledge.
Final Thoughts
Becoming a millionaire by 40 might sound like a lofty dream. But it’s achievable if you combine the right mindset with consistent, strategic actions. The difference isn’t always about working harder or longer hours than everyone else. It’s about being smarter with your time, money, and resources—and building a lifestyle that supports your goals.
If you can adopt even a few of these 10 habits, you’ll be miles ahead on the path to financial freedom. And remember: it’s never too late to start. Whether you’re 25 or 35, the best time to lay the foundations was yesterday; the second-best time is right now. Here’s to your success—may you join the million-dollar club sooner than you think!
