Humphrey Yang: These 15 Micro-Habits Made Me Rich
Written by
Ashley Donohoe
Edited by
Jenna Klaverweiden
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If you’re looking to get rich, you might feel you’re out of luck unless you have a big inheritance or another windfall to look forward to. However, the Northwestern Mutual 2024 Planning & Progress Study found that nearly 80% of millionaires made their own wealth.
According to financial influencer Humphrey Yang, becoming wealthy on your own is possible without the need to work extreme hours or take a high-risk approach to investing. In a recent video, he recommended adopting these 15 small habits that helped him get rich.
Also see five habits that are guaranteed to build wealth, according to Rachel Cruze.
Become 1% Better Daily
“If you’re able to make baby steps every single day, you can become 37.78 times better in 365 days by improving 1% every day, according to James Clear,” Yang said.
For example, you could aim to save a little more, spend a little less or make more money each day. Even small differences will add up and help you achieve your goals.
Pay Yourself First
Like many others, you might tend to spend your whole paycheck and not actually put anything aside for the future. So you can avoid this, Yang suggested using automated transfers from your checking account to your investment and savings accounts and using 10% of your pay as a starting point.
According to Business Insider, automating savings makes it easier to build wealth, as it can help you meet savings goals, avoid the temptation to spend and take advantage of interest.
Write Down Goals
Yang discussed how regularly writing down what you want to achieve increases your chances of success and leaves proof of past achievements. He advised being specific with goals, which might have timelines from a week to many years.
An example goal is saving $500 per month to have a $6,000 emergency fund in a year.
Spend on Yourself
According to Yang, it’s worth spending money to gain or improve skills that can help you boost your career options and income potential. According to McKinsey, employees who are interested in upskilling could prove to be valuable for employers.
The same applies to expenses that improve your mental or physical health.
Track Your Spending Daily
To better understand your spending habits, use an app or spreadsheet to record every day’s expenses. This spending log can help you make a more precise budget for your income, and Yang said your basic money management skills may also improve.
Lean Toward Taking Action
“Entrepreneurs will often bet on themselves and have full belief that they’ll be able to figure out whatever it is that they are working on,” Yang said.
Whether you’re thinking of starting a side business or tackling a smaller challenge like networking or pitching an idea, try going for it rather than waiting for the time to be perfect. Just make sure the risk is reasonable and you’re prepared to handle the challenge.
Exercise Regularly
According to the U.S. Centers for Disease Control and Prevention, regular exercise helps you feel better about yourself, improves your physical health and even reduces costly medical expenses.
Yang said working out also allows him to be more productive, stay disciplined and think clearly.
Shop Around Periodically
Yang suggested setting reminders to periodically check in with your service providers, like the cable company, to see if better deals are available. He also recommended comparison shopping for insurance policies, which he said might save you $100 to $150 per month.
Track Your Focused Hours
Your scheduled work hours may not be close to your actual productive time, which might be just a few hours each day. Yang recommended paying attention to those focused hours so you can boost your productivity at your main job and any side hustle you tackle.
Get an Accountability Partner
Having someone who holds you accountable is a life hack for reaching money goals, regularly exercising, stopping bad habits and more. Yang recommended finding a friend who is working toward a similar goal so you can help each other get better and progress faster.
Avoid judgment and regularly set up checkups with that person for the most success.
Block Out Your Time
If you often feel overwhelmed with tasks or struggle to stay focused, time blocking can help you be better organized and use your time more productively, which could boost your earnings. For example, you might set aside a few hours per day for a major work assignment with smaller individual blocks for things like email, proposals, meetings and prep work.
Have a Gratitude Journal
“By writing down one to three simple things that brought you joy that day or that you were grateful for, you’re subconsciously teaching your brain to focus on the positive things going on in your life,” Yang said.
Besides making you feel happier, this habit can improve your health, which could come with financial benefits.
Dip Your Toes
Yang said this habit means taking small steps toward new things you’re interested in, like a side gig or passion project, while you have your main job. He did this to create a budgeting app when he was younger and interested in entrepreneurship.
Eventually, your project might become your main income source.
Don’t Care What Others Think
If you’re focused on others’ opinions, you might get discouraged from making a big financial move or taking steps toward a happier life. Plus, you might spend too much to impress them.
Yang explained that others are usually mostly worried about themselves anyway, so just do your thing.
Schedule Time To Reflect
While you might feel the need to always be productive, downtime that lets you take things slowly and think about your goals and progress is important. Yang discussed how Bill Gates gets away each year to engage in this practice, which could last anywhere from a day to a week depending on your situation.
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