How do the rich keep getting richer while the poor struggle to just get by? While many factors are at play, one key difference is self-discipline. The wealthy follow strict rules and habits that enable their continued financial success. Meanwhile, those who struggle often lack this vital skill.
Self-discipline is the ability to control one’s thoughts, emotions, and behaviors to achieve a goal. Research has found strong links between self-control and positive outcomes like higher income, better health, and more satisfying relationships. Developing self-discipline is a powerful place to start if you want to improve your financial situation.
The Importance of Self-Discipline
Self-discipline is the ability to forego immediate gratification in favor of long-term rewards. It’s saying no to things you want now to achieve what you want most. This is a critical skill when it comes to money.
With temptations to spend constantly at our fingertips, it takes serious willpower to stick to a budget, save consistently, and invest wisely. But those who master the art of self-control are much more likely to build lasting wealth. One famous study found that children who could resist eating a marshmallow for 15 minutes went on to have higher SAT scores, educational attainment, and ability to handle stress as adults.
10 Self-Discipline Rules of the Wealthy
So, what do self-discipline and financial success look like on a daily basis? Here are 10 key habits that many of the wealthy credit for their continued growth:
1. Delay gratification
The wealthy understand the power of patience. They resist impulse purchases and prioritize saving over spending. One Stanford study found that children who could delay gratification by resisting a marshmallow had higher SAT scores and better life outcomes as adults.
The rich know that they can say yes to their biggest long-term goals and dreams by saying no to short-term wants. They have the patience to forgo a new outfit or fancy dinner now to invest that money and watch it grow over time.
2. Stick to a budget
You’ll never get ahead if you don’t know where your money is going. The wealthy keep close tabs on their cash flow, tracking income and expenses. They make a plan for their money and stick to it.
The key is to spend less than you earn. The wealthy aren’t afraid to live below their means. They know that just because they can afford something doesn’t mean they should buy it. By keeping their living costs low, they free up more money to save and invest.
3. Invest consistently
The rich make investing a habit. They pay themselves first each month by putting their income into investment accounts. Many automate the process so they don’t even have to think about it.
This consistency allows their wealth to grow exponentially over time, thanks to the magic of compound interest. Given enough time and discipline, even small contributions can snowball into a large nest egg.
4. Continuously educate yourself
The world constantly changes, and the wealthy know they must change to stay relevant. They are committed to lifelong learning and seek new knowledge and skills.
This could mean reading books and articles, attending conferences and workshops, taking courses, or seeking out mentors. The rich understand that investing in themselves is as important as investing in financial markets. They’re proactive about acquiring the know-how to succeed in an evolving economy.
5. Maintain good health
Enjoying your wealth is hard if you’re sick or run down. That’s why the rich prioritize their physical health with regular exercise, nutritious eating, and quality sleep.
They know that medical issues are not only physically debilitating but also financially draining. By taking care of their bodies now, they lower their risk of costly chronic conditions later on. Good health provides the energy and vitality to sustain the hard work that building wealth requires.
6. Manage your time wisely
In today’s fast-paced, distraction-filled world, the rich treat their time like the precious resource it is. They carefully plan and prioritize to make the most of each day.
This means being proactive rather than reactive, focusing on high-impact activities, and minimizing distractions. The wealthy are masters at saying no to the unimportant so they can say yes to their most critical goals. They understand that lost time is something that can never be regained.
7. Set clear goals
The rich are intentional about what they want to achieve. They set specific, measurable goals and create roadmaps to accomplish them. Many use the SMART framework, ensuring their goals are Specific, Measurable, Achievable, Relevant, and Time-bound.
Studies have found that writing down your goals makes you 1.4 times more likely to succeed. The wealthy take this further by reviewing their goals frequently and tracking their progress. This clarity of purpose helps them stay focused and motivated.
8. Take calculated risks
Building wealth requires getting out of your comfort zone. The rich understand that intelligent risks are necessary for significant growth. They’re willing to embrace uncertainty when the potential payoff is high enough.
However, the key word here is “calculated.” The wealthy don’t take risks blindly but do their homework to mitigate potential downsides. They trust their knowledge and instincts but also have contingency plans. By strategically diversifying their risk, they set themselves up to benefit from multiple opportunities.
9. Persist through failure
The road to riches is rarely a straight line. The wealthy know that setbacks are simply part of the journey. Rather than being discouraged by failure, they choose to learn from it.
The rich cultivate a growth mindset, viewing challenges as opportunities to learn and improve. They pick themselves up, dust themselves off, and try again with new insight. Their perseverance allows them to reap the long-term benefits of their risks.
10. Practice self-reflection
Finally, the wealthy are continually self-reflecting. They regularly take a step back to review their progress and assess areas for improvement. They track their wins and missteps to understand what’s working and what needs to change.
Most importantly, the rich hold themselves accountable for their choices and outcomes. They don’t make excuses or blame outside circumstances for their results. If they identify an area where they’ve gotten off-track, they take decisive corrective action to get back on course.
Case Study: Scott’s Journey
Let’s consider Scott’s example to see these principles in action. Scott grew up in a low-income neighborhood and watched his single mother work multiple jobs to make ends meet. From an early age, Scott knew he wanted more out of life.
In his 20s, Scott began reading books on personal finance and entrepreneurship. Despite considerable student loan debt, he committed to saving 20% of his entry-level salary. He used that money to start a small online business. For the first few years, progress was slow. Scott often sacrificed social outings with friends to invest time and money into his side business.
But Scott didn’t let the initial challenges discourage him. He continued educating himself by seeking out mentors and taking online courses. He set aggressive but achievable growth targets for his business each quarter. Whenever he fell short, he studied his missteps to refine his approach for the next attempt.
Through persistent effort and self-discipline, Scott eventually scaled his online business to replace his full-time income. He automated his investments, setting his wealth-building on autopilot. Scott’s net worth has surpassed $1 million and continues to grow yearly. The self-discipline habits he built in his 20s have enabled him to achieve the financial freedom he once thought was reserved only for the lucky few.
Key Takeaways
Here are the top 10 self-discipline rules that the wealthy follow:
- Delay gratification by resisting impulse purchases.
- Stick to a budget by tracking income and expenses.
- Invest consistently by automating contributions each month.
- Continuously educate yourself through reading, courses, and mentors.
- Maintain good physical health through exercise, diet, and sleep.
- Manage your time effectively by planning, prioritizing, and avoiding distractions.
- Set clear SMART goals and review progress frequently.
- Take calculated risks when the potential payoff is high enough.
- Persist through failures by maintaining a growth mindset.
- Practice self-reflection to review progress and hold yourself accountable.
Conclusion
Self-discipline is a key differentiator between the rich and the poor. While the wealthy diligently practice these 10 rules, the poor often struggle to control their impulses and delay gratification. Of course, systemic barriers and inequality can make it harder for low-income individuals to get ahead. A lack of resources, a scarcity mindset, and unsupportive environments can all work against the development of self-discipline.
However, self-discipline is a skill that can be developed with practice. By starting small, removing temptations, finding an accountability partner, and celebrating small wins, anyone can begin to build this crucial muscle. The 10 rules the rich follow can guide the path to better financial outcomes. Pick one to begin implementing this week and start forging the habits that can carry you to a brighter future. With consistent effort and patience, the life-changing power of self-discipline is within your reach.