There’s a clear divide between the “new rich” and the truly wealthy.

This gap isn’t just about the size of their bank accounts, it’s about habits, mindset, and how they interact with their wealth.

The “new rich” might be rolling in dough, but they often lack the habits that will sustain their wealth in the long term. The truly wealthy, on the other hand, have mastered certain ways of living that not only maintain but also grow their fortune over generations.

With seven key habits, you can start to cross this divide. And trust me, it’s not about penny-pinching or working 24/7. It’s about smart strategies and making your money work for you.

Stay tuned as I delve into these seven habits that separate the “new rich” from the truly wealthy. Let’s explore together how we can learn from these practices, and maybe even up our own wealth game.

1) Truly wealthy know the value of time

Time is more than money for the truly wealthy.

The “new rich” might have a lot of cash, but they often find themselves trapped in a cycle of working all hours to maintain their lifestyle. They equate wealth with hard work and long hours.

On the flip side, the truly wealthy understand that time is their most valuable asset. They value their time more than money, and they often invest in services or tools that free up their time, allowing them to focus on what truly matters to them.

Think about it. Instead of spending hours cleaning their house, they might hire a cleaning service. Instead of spending days editing a document, they might hire a professional editing service.

This way, they are able to focus on their core competencies and things that bring them joy.

This habit is about understanding the importance of work-life balance and knowing when to delegate tasks to others. It’s not about being lazy, but about being efficient and strategic with your time.

2) Truly wealthy invest in their knowledge

I’ve seen this firsthand. The truly wealthy are always looking to learn and grow.

A few years back, I had a chance to meet a self-made millionaire at a business conference. He was successful, no doubt about that, but what struck me was his eagerness to learn.

He was attending every keynote, participating in every workshop, and constantly reading books to improve his skills and knowledge. He told me, “Investing in my knowledge has been the best investment I’ve ever made.”

This made me realize that the “new rich” often focus solely on increasing their bank balance, while the truly wealthy understand that wealth extends beyond money. They understand the value of knowledge and the power of continuous learning.

They invest in their education, learn new skills, stay updated with industry trends, and constantly seek to improve themselves. They know that the more they learn, the more opportunities they have to increase their wealth.

Learning from this millionaire’s approach, I started investing in my knowledge too. I read more books, took online courses, attended seminars, and it has indeed opened new doors for me.

3) Truly wealthy play the long game

In the world of finance, compound interest is often referred to as the “eighth wonder of the world”. This is because it allows your wealth to grow exponentially over time.

The “new rich” often fall into the trap of short-term thinking. They aim for quick wins and instant gratification. However, the truly wealthy understand and appreciate the power of long-term investments and compound interest.

They know that wealth isn’t built overnight but over decades. Rather than chasing quick money-making schemes, they invest their money in assets that generate passive income over time, such as real estate, stocks or bonds.

They understand that small, consistent investments can turn into a substantial fortune over time thanks to the magic of compound interest. It’s a slower process, but it’s a lot more reliable and sustainable.

4) Truly wealthy cultivate rich relationships

Wealth isn’t just about money. It also involves the relationships we build and nurture throughout our lives.

The “new rich” often get caught up in the glamour and glitz that money can buy, neglecting their relationships in the process. They may find themselves surrounded by people who are more interested in their fortune than their friendship.

Contrastingly, the truly wealthy understand the importance of cultivating rich relationships with family, friends, and colleagues. They invest time and energy into building strong connections with people they trust and respect.

These relationships not only provide emotional support and companionship but can also open doors to new opportunities. After all, having a robust network can lead to collaborations or partnerships that can further boost your wealth.

Invest in your relationships, and you’ll find yourself richer in more ways than one.

5) Truly wealthy give back

This has always been close to my heart.

Growing up, I noticed a stark contrast in how different people handled their wealth. Some people hoarded their riches, while others used their wealth to make a difference in the community.

The truly wealthy understand that giving back is a crucial part of wealth. They don’t just accumulate wealth for themselves; they use it to improve the lives of others. They donate to charities, support causes they believe in, and invest in the betterment of their communities.

This is not just about philanthropy; it’s about understanding that true wealth includes making a positive impact on the world around you. It’s about using your resources to leave the world a little better than you found it.

Giving back has played a significant role in my own wealth journey. It has not only enriched my life but also offered me a sense of purpose and fulfillment that money alone couldn’t provide.

6) Truly wealthy live within their means

Flashy cars and designer clothes might be what comes to mind when you think of the rich. But that’s often a picture of the “new rich”, not the truly wealthy.

The truly wealthy understand the value of living within their means. They’re not interested in flashy, superficial status symbols just for show. Instead, they focus on building and maintaining their wealth.

They make smart financial decisions – saving where they can, investing wisely, and avoiding unnecessary debt. They know that overspending can lead to financial instability, and they’d rather have a healthy bank balance than a luxury car that depreciates as soon as it’s driven off the lot.

So, if you want to be truly wealthy, don’t fall into the trap of lifestyle inflation. Live within your means, save more than you spend, and invest wisely. Your future self will thank you for it.

7) Truly wealthy don’t equate wealth with happiness

At the end of the day, the truly wealthy know that money isn’t everything.

They understand that wealth is a tool, not a goal. It can provide comfort, security, and opportunities, but it doesn’t guarantee happiness.

They find joy in their relationships, passions, and achievements, not in the size of their bank accounts. They know that life’s greatest treasures can’t be bought with money.

This mindset allows them to enjoy their wealth without being consumed by it. They can appreciate what they have without constantly wanting more.

True wealth isn’t just about money; it’s about leading a fulfilled and meaningful life. Don’t let your pursuit of wealth overshadow your pursuit of happiness. After all, what’s the point of being rich if you’re not happy?

Final thoughts: Wealth is a journey, not a destination

The path to true wealth isn’t just about accumulating money; it’s about cultivating the right habits and mindset.

From valuing your time and investing in your knowledge, to giving back and living within your means, these habits set the truly wealthy apart from the “new rich”. But perhaps the most important habit of all is understanding that wealth doesn’t equate to happiness.

After all, as famed investor Warren Buffet aptly said, “If you think you will be happier spending more money, you’re wrong. You have to learn to be happy with an inner scorecard, not an outer one.”

So as you embark on your wealth journey, remember that it’s not just about the destination. It’s about the habits you cultivate, the relationships you build, and the lives you touch along the way.

True wealth isn’t measured in dollars and cents; it’s measured in the richness of your life experiences and the impact you make. So strive to be truly wealthy, not just rich.