26 June 2025
general
While you may believe that wealth is simply a byproduct of a high income, true financial prosperity among high earners is less about the size of their income and more about how they manage it.
Many high earners and famously wealthy people swear by certain actions or strategies. Yahoo Finance cites Mark Cuban as an example. Though he is a billionaire investor and Shark Tank star, Cuban is well-known for recommending modest lifestyles and budgeting.
Indeed, for anyone aspiring to build significant wealth, understanding and adopting the wealth building habits of high earners could be key to long-term financial success.
Here are some important habits you could implement in your own financial plan.
Continuous learning and financial literacy
Beyond merely earning more, high earners often show a commitment to continuous learning and building on their financial literacy.
When expanding your knowledge and enhancing your financial literacy, it’s important not to view education as a once-off event. Rather, it means staying on top of market trends, understanding the economy, and regularly reviewing your financial plan.
You could read financial publications, attend webinars, and discuss wealth management with like-minded peers. Challenging your own assumptions and being willing to be proved wrong is crucial here.
This proactive approach could help you adapt to changing economic conditions while being able to identify new opportunities.
Strategic investing and making your money work harder
A distinguishing characteristic of a high earner's approach to their financial wellbeing is their commitment to strategic investing. Indeed, Bankrate cites the following Warren Buffett quote: “Big opportunities come infrequently. When it’s raining gold, reach for a bucket, not a thimble.”
What he might mean by this is that high earners will typically find ways to make their money work harder for them. This could involve:
This could mean maximising your Individual Savings Account (ISA) allowances, considering pension options such as self-invested personal pension (SIPP) contributions, or even exploring alternative investment opportunities, where taking calculated risks could lead to a higher reward.
Remember, what works for you will ultimately depend on your risk tolerance and financial goals. This is something we can help you identify and manage over the long term.
Disciplined spending and conscious budgeting
Disciplined budgeting and conscious spending may seem like basic concepts, but they’re incredibly important. You might even find that they’re surprisingly prevalent among high earners.
Shaquille O’Neal is one of them, with the CNBC highlighting his approach to savings. He said: “It’s not about how much you make, it’s about how much you keep.”
He went on to say that it’s important to put a piece away of every form of income you receive, even if it’s a small amount.
While Shaquille O’Neal, and many other high-net-worth individuals may have the capacity to spend freely, many adopt a more mindful approach to their outgoings.
This doesn’t strictly mean living an overtly frugal life. Rather, it’s ensuring that their spending aligns with their values and long-term financial goals.
One example is learning to differentiate between “wants” and “needs” as a way of avoiding lifestyle creep, where an increased income leads to an unsustainable increase in expenses.
This financial discipline could help free up capital for strategic investments and accelerate the growth of your wealth.
Protecting your wealth by safeguarding your assets
Many high earners understand the value in protecting their assets, which often means investing in robust protection. This could include comprehensive insurance cover, from life insurance and critical illness cover to income protection and even business insurance.
You’ll also find that high earners typically engage in robust estate planning to ensure their wealth is distributed according to their wishes. Not only can this help protect the legacy of their wealth, but help minimise an Inheritance Tax (IHT) liability.
For example, the Independent reports that Anne Robinson, former Weakest Link host, has already distributed her £50 million estate across her family to prevent her wealth going to IHT.
Both options could provide a crucial financial safety net and help ensure the longevity of their wealth for future generations.
Making time to review and audit your finances
Staying on top of one’s finances is key for long-term growth, and doing so could help you adapt to market changes and adjust as required. That said, wealthy individuals likely know that knee-jerk reactions to economic shifts aren’t necessarily productive.
Taking the time to review your financial position in relation to current and future events could help keep you aligned with your long-term goals. This is something you could do annually with your financial planner.
Seeking expert advice
Finally, one of the most impactful habits you could adopt is the regular practice of seeking expert advice.
While self-education is crucial, managing one’s wealth effectively can be complex. High earners often see the value in working with financial planners, tax advisers, solicitors, and more.
This is something we can help with.
Not only can we, and other professionals, offer tailored advice, but we can also help you navigate complex regulations and identify potential financial pitfalls.
Together, we can create a holistic financial plan that accounts for all your needs and goals.
Get in touch
Remember, while being a high earner can certainly open some doors, choosing to adopt empowering financial habits could be the ticket to building generational wealth.
Email enquiries@jesellars.co.uk or call 01934 875 919 to find out more about how we can help you.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
Note that life insurance and financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.
Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.
Tax levels and reliefs could change, and the availability of tax reliefs will depend on individual circumstances.
