9 Millionaire Habits You Need To Embrace, According to Ramit Sethi

©Ramit Sethi

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

In a new YouTube video, personal finance expert Ramit Sethi talked about the top millionaire habits nobody teaches you and how they can compound your wealth over the years.

Forget waking up at 4 a.m. or cutting out lattes not made at home. Sethi focused on habits that actually move the needle on building wealth.

Actually Invest In Yourself (With Proof)

Everyone says they love learning, but Sethi called this out as mostly entertainment. Saving motivational quotes on Instagram or watching YouTube at 2x speed while scrolling Twitter doesn’t count.

Real investment shows up in two places: your calendar and your spending. If you’re serious about improving, you’ll spend actual money on books, courses or coaching, and block out time to apply what you learn.

Sethi shared an example of a reader who bought one of his courses, actually went through the material and landed a $20,000 raise. Compare that to someone who says, “I’ll get to it someday,” but 10 years later is still at the same desk making the same paycheck.

Practice Deliberately, Not Just Repeatedly

The 10,000 hours rule misses something crucial. You don’t just need time, you need deliberate intentional practice.

Sethi used his gym experience as an example. He used to randomly do whatever exercise was in front of him with no plan or system. When he got serious, he hired help, learned how nutrition works and discovered what truly intense workouts look like.

The same applies to any skill. Want to get good at interviewing? Don’t do one mock interview with your roommate. Do 50, record them, watch them back and improve one specific thing each time.

People applying for jobs often make this mistake. They send the same resume to a hundred companies, get rejected repeatedly and never evaluate what’s working or what needs to change. That’s not deliberate practice, that’s an exercise in futility. 

Play Offense With Your Money

Most people play defense. They wait until the end of the month, look at their credit card bill, and say “I guess I spent that much.” That’s reactive.

Successful people play offense. They negotiate, automate and get aggressive about their finances. Sethi shared how one reader called their landlord and negotiated $175 off their rent. That’s not a one-time win, it’s $175 every single month for as long as they live there.

Meanwhile, people who play offense are running circles around them. They negotiate raises, automate their savings and set up systems so money grows while they sleep.

Understand How Money Actually Works

Too many people have a cynical, guilt-based relationship with money. They agonize over spending $20 at Target but never think about their investment strategy or asset allocation.

Successful people understand that money is a tool. Sethi shared an example of a friend who spends $21,000 a year going out, completely guilt-free, because everything else in their financial system is optimized. Rent, savings and investments are handled, so they know exactly what they can afford to spend.

The difference is consciousness. Many people spend money unconsciously, then feel guilty and say things like, “I was bad last weekend.” Good or bad has nothing to do with it. Did you make a plan? Did you decide what your rich life looks like and put money intentionally toward it?

Intentional spending means knowing your money dials, the areas you love spending on. For some that’s travel, for others it’s eating out or health and wellness. 

Choose Solutions Over Problems

There are two types of people: problem-oriented and solution-oriented. Problem-oriented people love talking about their problems. They can’t find a new job, their kids won’t sleep, on and on.

Solution-oriented people also talk about problems, but they focus more on fixes. “I can’t get my kids to sleep on time, so I joined a parenting webinar to learn how other people do it.” “I can’t figure out my investments, so I bought a book and I’m reading it every evening.”

The problem-oriented mindset keeps you stuck. When you’re problem-oriented, every obstacle feels like proof you can’t succeed. When you’re solution-oriented, every obstacle is just another challenge to solve.

Sethi had a reader who said she couldn’t save any money at all. Within a month, she’d freed up $250 with the same income and same expenses. The difference was shifting her mentality from “I can’t” to “how can I?”

Ask for Help (Even When It’s Hard)

This one is tough. Too many people sit in jobs they don’t like for years. They complain to friends and scroll job listings but never actually ask for help.

When was the last time you asked a mentor, peer or someone in your network for feedback or advice? For many people, the answer is never.

Sethi was helping someone find a job and they never directly asked him for introductions, even though he was connected to relevant people on LinkedIn. When he asked why, they said, “I never thought I could do that.”

The people who ask for feedback often double their rates. Not because they’re more talented, but because they’re willing to ask for guidance. 

Advocate for Yourself

Every raise compounds. A $10,000 raise today becomes much more money over a decade, and it also becomes the baseline for your next raise.

Sethi’s colleague Sheena sat down and made the case for a new role and her desired compensation. She was clear and confident. That one conversation changed her career trajectory.

But many people talk themselves out of it. When you hear “$10,000 raise,” your first reaction might be, “That’s so unrealistic.” That voice in your head that you think is your friend is actually keeping you stuck, silent and playing small.

Write down three ways you’ve added value at work this year. That’s your starting point for your next negotiation.

Keep Going When Others Quit

Sethi has worked with many people over his 21-year career, and the difference between those with resilience and those without is striking.

Early on, he brought on several contractors for a project and gave them direct feedback. Many simply vanished after receiving it. He realized they’d never heard direct feedback on their performance before, and they couldn’t handle it.

So many people give up way too early. They send two job applications, don’t hear back and quit. They try freelancing, get one no and walk away. Meanwhile, people who keep going are the ones who win. Sethi’s heard countless rejections and dealt with all kinds of criticism, but he keeps going because his business is about serving people who truly want to live a rich life.

Get in the Game

This is the most underrated habit. You can’t build opportunities sitting on your couch. You need to get in the game and be where the action is.

If a 25-year-old asked Sethi for career advice, he’d tell them to go to a big city. More people, more opportunities, more ideas and things move fast. That could mean moving to New York, Los Angeles or Silicon Valley.

But it doesn’t only mean physically moving. It can mean joining an in-person meetup in your industry or showing up at a conference. Sethi shared a humiliating story about attending a Stanford sociology gathering in New York where nobody knew him because it was for PhD students only. He felt stupid, but appreciated that you’ve got to take risks.

Research one place where leaders in your industry are gathering. When Sethi was in college, he couldn’t get tickets to a conference, so he emailed and volunteered. That’s how he got in. There are so many ways to get in the rooms if you get creative about it.

Share This Article: