10 Smart Money Habits the Wealthy Use to Build Lasting Financial Security
Most people work hard their entire lives, yet many end up living paycheck to paycheck. Meanwhile, the wealthy seem to have a formula that allows them to build lasting financial security. The difference isn’t luck — it’s habits, discipline, and knowledge. In this episode of the Roy Matlock Jr. Money and Business Hour, Roy shares the top 10 money strategies he’s seen wealthy individuals use consistently over his 40+ years in the financial industry.
1. Pay Yourself First
The wealthy understand that savings should be treated like a bill. The first step is to make a profit on your efforts and automatically set aside a portion of income. By automating savings — even as little as 10% — you create consistency, which is far more powerful than occasional effort.
2. Maximize Retirement Plan Contributions
Retirement accounts such as 401(k)s, IRAs, SEPs, and Roth IRAs are powerful tools because they come with tax advantages. Contributing to these accounts means the government effectively gives you an interest-free loan. For example, if you contribute $10,000 in a 25% tax bracket, you immediately save $2,500 in taxes — money that can grow for decades.
3. Use Dollar Cost Averaging
Dollar cost averaging means investing a fixed amount on a regular schedule, regardless of market conditions. This strategy helps reduce emotional decision-making and allows you to buy more shares when prices are low. Over decades, this consistent habit leads to significant growth.
4. Have a Written Plan
Most people spend more time planning vacations than planning their finances. Wealthy individuals put their goals and strategies in writing, revisit them regularly, and adjust as life changes. A written plan provides motivation, clarity, and accountability.
5. Know the Difference Between Good Debt and Bad Debt
Debt itself isn’t bad — but using it poorly is. Good debt is affordable and tied to appreciating assets, like real estate or a business investment. Bad debt is unaffordable and tied to depreciating assets, like credit card balances or vehicles you can’t afford. Wealthy people avoid bad debt and use good debt strategically.
6. Diversify Across Asset Classes
Diversification reduces risk and smooths out market ups and downs. A balanced portfolio might include cash for emergencies, bonds for stability, and stocks for long-term growth. Depending on age and goals, the mix changes, but the principle remains the same: don’t put all your eggs in one basket.
7. Create a Strong Financial Defense
Wealth isn’t just built by growing assets — it’s also preserved by protecting them. Proper insurance is critical, including life insurance, disability coverage, health insurance, property and casualty policies, and long-term care planning. Without protection, even a solid financial plan can collapse under unexpected expenses.
8. Build Multiple Streams of Income
The wealthy rarely rely on a single income source. Instead, they combine earned income, business ownership, rental properties, investments, and passive income streams. Multiple income sources create stability and resilience, even when one stream slows down.
9. Keep Estate Documents and Beneficiaries in Order
Wills, trusts, powers of attorney, and beneficiary designations are essential. Without them, family disputes, probate delays, and costly mistakes can drain wealth. Wealthy individuals review these documents regularly to ensure their money goes where it’s intended.
10. Get Professional Advice and Regular Reviews
Finally, wealthy people understand the value of professional guidance. They meet with fiduciary advisors regularly to review their financial plans, make adjustments, and stay on track. Annual check-ins provide peace of mind and ensure their money is working in the best possible way.
Bonus: Business Owners Need Special Planning
For entrepreneurs, planning doesn’t stop at personal finances. Business continuity, succession planning, buy-sell agreements, and employee benefits are all essential. Without them, decades of work can unravel quickly. Wealthy business owners treat their business as an asset that needs protection and a transition plan.
Conclusion: Build Wealth with Consistency and Planning
The difference between those who struggle and those who thrive financially often comes down to consistent habits. By paying yourself first, maximizing tax-advantaged accounts, protecting your assets, and working with trusted professionals, you can put yourself on the same path the wealthy follow. Financial independence isn’t about luck — it’s about discipline, planning, and action.
🎧 Want to dive deeper into these 10 money habits? Listen to the full podcast episode here with Roy Matlock Jr.
Business Owners on the Air with Roy
Are you a successful small business owner, or maybe you know someone who is! Roy wants to interview business owners who have success stories for inspiration to our listening audience to share their journey from starting out to success. Nominate someone you may know, or yourself, by clicking here.
