Time to read : 5 Minutes
With money and cost of living issues in the headlines daily, have you ever looked at someone on an average income who somehow built a property portfolio or retired early and thought, “How the heck did they do that?” Well, you’re not alone.
The truth? It’s almost never about luck or inheritance. It comes down to a handful of invisible habits. Small behaviours that compound over time.
Many people think building wealth is about earning more. But income is only part of the equation. The real magic lies in how you behave with money, especially when no one’s watching. Yep, this may be a hard truth, but building good money habits really comes down to you.
As a Chartered Accountant and private investor spanning three decades, I’ve worked with people earning $60k and people earning $5m+. What’s interesting is that in both camps, some have wealth, and some don’t. The difference comes down to habits. Let’s explore five big ones:
1. Investors think cadence. Spenders think in one-offs.
Spenders might make the occasional top-up into super or invest in some shares after a good year. But it’s often sporadic and inconsistent.
Investors focus on consistent efforts. They treat investing like brushing their teeth: boring but effective and protective.
They understand what Nobel Prize–winning economist Richard Thaler calls “mental accounting” – which is when people treat money differently depending on where it comes from.
This awareness means investors are less likely to make irrational decisions. Every dollar has a role. The investing habit is ingrained. It just happens.
I call this ‘cadence’. And it’s the rhythm you bring to your investing, a little like a drummer keeps a beat.
“Time is your friend; impulse is your enemy.” – John C. Bogle, Founder of Vanguard
💡 Set up a weekly or monthly automated transfer into an investment account. Even if it’s $50, it’s better than doing nothing. The habit is the win.
2. Investors prioritise urgency. Spenders assume there’s time.
A spender will say: “I’ll worry about investing when I’m earning more.”
An investor says: “I’ll invest now so I can worry less later.”
They understand the power of compounding. A benefit that rewards those who start early and stay the course.
Just $200 a week invested from age 25 could grow to over $2.2 million by age 65 (assuming 7% returns).
That’s with just over $400,000 in contributions. The rest is pure compounding interest.
Compounding isn’t a maths trick. It’s a time trick. And only those who start early get to use it.
💡 Don’t wait to “feel ready.” Start now, even if it’s a small amount. Time in the market beats timing the market.
3. Investors learn how to think. Spenders chase what to do.
Spenders want to know: “What stock should I buy?” “What’s a good side hustle?” In other words, they’re looking for a quick fix.
Investors go deeper. They learn how to think about risk, long-term trade-offs, and incentives.
They read, ask questions and study behaviour, because they know the lens matters more than the tool. They’re less interested in tactics, more focused on mental models.
I’ve seen people with $1M portfolios implode because they didn’t understand how markets work. And others with half the capital build real independence by making calm, deliberate moves.
💡 Before your next money decision, stop and ask: “Is this a strategy, or just a tactic?” That question alone has the power to change outcomes.
4. Investors delay gratification. Spenders live for the present.
Every dollar you earn requires a decision between now and later.
Investors are willing to take $1 out of their pocket today to give $3 to their future self. Spenders? Not so much.
This isn’t about being deprived, it’s about alignment. Investors don’t just delay for the sake of it. They do it because they have a vision. They know what they’re building toward. That clarity makes waiting easier.
💡 Paint a picture of what you want your future financial position to look like, for example paying off your home loan within 15 years to be debt-free. Then you can remind yourself of this bigger goal when you get the urge to splurge.
5. Investors seek freedom. Spenders seek comfort.
Spenders tend to confuse lifestyle with success. The house, car, holidays. It feels like progress. But it’s often just consumption dressed up in prestige… with debt in the background holding them back.
Investors are different. They’d rather feel safe than look rich. They want flexibility and security. A paid-off home. An exit strategy. The ability to walk away from a toxic job or back their next move.
They’re not frugal, instead they’re focused.
Spenders optimise for today. Investors optimise for tomorrow.
💡 Before going ahead with a big spend, ask this question: “Is this making me freer, or just more comfortable?” The answer could help change your spending habits.
Bottom line
If you’ve been working hard, earning a reasonable income, and wondering why wealth still feels out of reach, it may be time to do a deep-dive into your habits.
When you change your habits, you don’t just change outcomes – you begin to see yourself differently. And that identity shift is what makes the new habits stick.
So take a look at the five big habits of investors and then start with small changes, Remember to stay consistent and track your progress.
Making the shift now could make a big difference down the track to your long-term financial security.
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Financial disclaimer
The information contained on this web page is of general nature only and has been prepared without taking into consideration your objectives, needs and financial situation. You should check with a financial professional before making any decisions. Any opinions expressed within an article are those of the author and do not specifically reflect the views of Compare Club Australia Pty Ltd.
