I’m a Financial Advisor: 5 Money Habits My Wealthy Clients Never Break
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Laura Beck
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Molly Sullivan
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Tom Mitchell manages money for wealthy clients as president and founder of Sconset Wealth Management, a Northwestern Mutual private client group. After years of working with high-net-worth individuals, he’s figured out the specific habits that his wealthiest clients follow without fail.
These aren’t flashy investment tricks or get-rich-quick schemes. They’re boring behaviors that wealthy people stick to over time. Here are the five money habits Mitchell said his wealthy clients never break.
1. They Pay Themselves First
Rich people don’t wait to see what money is left over at the end of the month. They completely flip how most people think about saving and investing.
“Rather than waiting to see what remains at the end of the month, high-net-worth individuals pay themselves first by making saving and investing a priority — automatically directing a portion of their income into investment portfolios, retirement accounts and cash reserves,” Mitchell explained.
This means their money is always working for them instead of disappearing into everyday expenses. The wealthy know that investing consistently creates compound growth that builds wealth over decades.
Mitchell explained how this strategy helps in multiple ways: “This strategy ensures their capital is consistently compounding on their behalf, creating long-term growth while also building a financial foundation that provides resilience across all markets.”
2. They Write Down Specific Financial Goals
Most people have fuzzy ideas about money like “I want to be rich someday.” Wealthy people get specific about exactly what they want to accomplish with their wealth.
Mitchell said his clients are “committed to setting clear, well-defined financial goals. Rather than leaving wealth to chance, they clearly define both short- and long-term objectives whether it’s building generational wealth or funding philanthropy, lifestyle priorities or business ventures.”
These specific goals work like a roadmap for every financial decision. Mitchell explained how this clarity helps: “Establishing these goals provides a roadmap for decision-making, ensuring every investment, tax strategy and planning move aligns with their broader vision and ultimate plan.”
The mental benefits matter too. “This clarity not only helps measure progress but also brings confidence and purpose to the wealth management process,” Mitchell said.
3. They Build Teams of Money Professionals
Rich people don’t try to handle complex financial planning by themselves. They hire professional experts across multiple areas.
“Many wealthy clients are committed to engaging a well-rounded financial team, bringing together advisors, legal council, tax professionals and other specialists,” Mitchell explained.
This team approach values knowledge and strategy just as much as money. Mitchell made this point: “They recognize that strategic decision-making and access to sophisticated opportunities are just as valuable as capital itself.”
Having these professionals work together helps wealthy clients avoid expensive mistakes while finding opportunities that people working alone might miss. “By surrounding themselves with a coordinated team that acts in their best interests, they minimize costly missteps and ensure they are positioned to take advantage of complex wealth-building strategies,” Mitchell said.
4. They Think About Taxes All Year Long
Most people think about taxes once per year around April 15. Wealthy people treat tax planning like a year-round job that needs constant attention.
Mitchell explained what’s at stake: “Those who have built lasting wealth don’t leave tax planning to chance. As net worth grows, so does tax exposure, and without a strategy in place, taxes can erode wealth over time.”
The wealthy focus on controlling what they can control instead of just accepting whatever tax bill comes their way. “High-net-worth households know that controlling what you can control — timing, asset location and the structure of accounts — is what really moves the needle,” Mitchell said.
He explained how this ongoing approach is different from normal tax planning: “Managing wealth is as much about limiting tax risk as it is about growing assets. Taxes can’t be a once-a-year conversation at filing time, the affluent understand this and view proactive tax strategy as a non-negotiable habit.”
5. They Keep Lots of Cash on Hand
Most financial advice says to invest every dollar you have. Mitchell’s wealthy clients do the opposite — they keep large amounts of cash as a strategic tool.
“They often maintain a reserve of high-interest liquid cash as a strategic ‘buffer’ from the equity markets,” Mitchell explained.
This cash does more than just sit there for emergencies. Having liquid money gives them flexibility during market crashes: “This buffer portfolio provides them with the flexibility to wait out downturns in the stock market without being forced to sell off assets at a loss.”
The cash reserve also lets wealthy people hold investments that might take years to pay off. “By having readily accessible cash, they can also afford to stick with illiquid private investments, which may take time to realize their full value,” Mitchell said.
Most importantly, cash reserves let wealthy clients buy when others are selling. Mitchell noted: “Moreover, this cash reserve allows them to seize unique opportunities that arise during challenging phases of the economic cycle, such as acquiring undervalued assets or investing in distressed ventures.”
How Cash Affects Their Thinking
Mitchell explained how keeping cash reserves changes how wealthy clients make decisions and handle stress.
“The liquidity and stability of this cash buffer gives them the confidence to make decisions based on long-term strategies rather than short-term market fluctuations,” he said.
This mental benefit helps them make better financial decisions across their entire portfolio. “Ultimately, it enables them to navigate economic uncertainties with greater resilience and adaptability,” Mitchell explained.
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