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TOM@RICHHABITS.NET
For five years, I studied the daily habits of 233 wealthy individuals and 128 people struggling financially. My Rich Habits research uncovered a stark truth: wealth isn’t just about intelligence or hard work. Most people, no matter how smart or diligent, will never be rich.
The reason?
It’s not about what you do occasionally but what you do every day. Habits, not IQ or effort alone, are the creators and gatekeepers to wealth.
The Myth of Intelligence and Hard Work
Society loves to romanticize the idea that being smart or working hard guarantees financial success. We’re told that if you get good grades, earn a degree, or put in long hours, wealth will follow. But my research tells a different story. Of the wealthy individuals I studied, only 21% were in the top 1% of cognitive ability. Most were not geniuses. They didn’t have Ivy League degrees or photographic memories. Similarly, hard work alone didn’t cut it. Many of the poor individuals I studied worked grueling hours—some held two jobs—yet remained trapped in financial struggle.
So, what’s the disconnect?
The answer lies in habits. The rich have cultivated what I call Rich Habits—specific daily behaviors that compound over time to create wealth. The poor, despite their intelligence or effort, are often shackled by Poor Habits that keep them stuck.
Let’s dive into the data and see why.
Rich Habits vs. Poor Habits: The Real Wealth Gap
My Rich Habits study revealed that the wealthy consistently practice habits that align with long-term success, while the poor engage in behaviors that sabotage their efforts.
Here are some key differences:
- Goal-Oriented Living
80% of the wealthy set specific, measurable goals and reviewed them daily. They didn’t just want to be rich—they had a clear plan to get there. In contrast, only 12% of the poor set goals, and even fewer tracked their progress. Smart or hardworking people who drift without direction often waste their potential on tasks that don’t move the needle. - Continuous Self-Improvement
76% of the rich dedicated at least 30 minutes daily to learning—reading books, studying their industry, or developing new skills. Meanwhile, 97% of the poor spent that same time on entertainment, like watching TV (77% watched over an hour daily) or scrolling social media. Intelligence is useless if it’s not channeled into growth. - Financial Discipline
The wealthy live below their means—88% saved at least 20% of their income, and 65% avoided impulse purchases. The poor? 95% spent more than they earned, often racking up credit card debt. Hard work doesn’t matter if you’re bleeding money on wants disguised as needs. - Relationship Building
68% of the rich actively nurtured relationships with success-minded people—mentors, colleagues, or peers who pushed them to grow. Only 11% of the poor did the same. Instead, many surrounded themselves with negative influences, which drained their motivation and focus.
These habits aren’t flashy. They’re not predicated on you being the smartest person in the room or working 80-hour weeks. They’re small, consistent behaviors you engage in daily that compound over many years.
But here’s the hard truth: most people, even the most intelligent and hardworking individuals, don’t make the effort to forge these daily habits. They’re too busy, too distracted, suffer from a lack of mental bandwidth, or are too comfortable with the status quo.
The Trap of Poor Habits
Let’s talk about Poor Habits—the silent killers of wealth. My research found that 70% of the poor engaged in time-wasting activities daily, like excessive TV or gambling (23% gambled regularly, compared to just 6% of the rich). These habits don’t just waste time; they rewire your brain to seek instant gratification. When you’re chasing short-term dopamine hits, you’re not building wealth—you’re building a cage.
Another trap? Lack of financial literacy. 93% of the poor didn’t understand basic financial concepts (Click on here: 17 Personal Finance Concepts You Need to Understand in Order to be Financially Literate)
Even some of the smartest, most successful people I interviewed, started out financially illiterate. At some point along their journey towards wealth, they decided to amp up their game and become financially savvy. They realized that hard work alone won’t stop money from slipping through their hands.
Then there’s the mindset. 78% of the poor believed wealth was a matter of luck or chance, while 90% of the rich attributed their success to their habits and decisions. If you’re smart and hardworking but think the game is rigged, you’ll always find excuses/reasons to quit on your goals or dreams.
Why Intelligence and Hard Work Aren’t Enough
Being smart can actually be a liability if it’s not paired with discipline. In my study, some of the brightest individuals were among the poorest because they relied on their intellect to “figure it out later.” They procrastinated on saving, investing, or learning new skills, assuming their intelligence would bail them out. It didn’t.
Hard work, too, can be a trap. Many of the poor worked harder than the rich—think manual laborers or those juggling multiple low-paying jobs. But they were stuck in what I call the Wage Slave Cycle: trading time for money without building Forever Assets. The rich, on the other hand, focused on creating Forever Assets, which led to the creation of multiple streams of income. The invested in: themselves, side businesses, real estate, or developed unique skills that they were paid a premium for.
In my Rich Habits Study, 51% of the wealthy owned or were building a side business, compared to just 2% of the poor.
The Path to Wealth: Adopting Rich Habits
So, how do you break the cycle? It starts with awareness. Most people don’t realize their daily habits are keeping them poor.
Here’s how to start dramatically changing your life and the financial circumstances of your life:
- Set Clear Goals: Write down one big financial goal and break it into daily actions. Review it every morning. This keeps you focused, no matter how smart or busy you are.
- Learn Every Day: Commit 20-30 minutes to reading about your industry, your dreams, your goals personal finance, or practice some new marketable skill.
- Live Frugally: Track every penny for 30 days. Cut one unnecessary expense and redirect that money to savings or investments. Small wins build momentum.
- Surround Yourself with Winners: Seek out mentors or peers who inspire you to level up. One positive relationship can change your trajectory.
- Take Calculated Risks: The rich in my study weren’t reckless, but they took smart risks—like starting a side hustle or investing in their education. 63% said their biggest financial wins came from stepping outside their comfort zone.
The Hard Truth
Intelligence and hard work are tools in your toolbelt. Without the right habits, those tools are like a hammer without a nail. My Rich Habits research shows that wealth is predictable—not a lottery, not a gift, but the result of consistent, intentional daily behaviors.
The good news? Anyone can forge these habits. You don’t need a high IQ, money or luck. What you need in order to create wealth is discipline, patience, and a willingness to change.
If you’re reading this, you’re already ahead of the curve—you’re curious enough to question the status quo. You’re tired of living paycheck to paycheck. You want to break out of this rigged system we caught up in.
Start small. Pick one Rich Habit and commit to it for 30 days. You’ll be amazed at how quickly the needle moves. The first thing you’ll feel is a mind shift change – from negative to positive.
Wealth isn’t about being the smartest or the hardest worker. It’s about doing the right things, day after day, until those right things, those Rich Habits, become who you are; a better future version of the today you.
Tom Corley is an accountant, financial planner and author of “Rich Kids: How to Raise Our Children to Be Happy and Successful in Life”, Effort-Less Wealth, Change Your Habits Change Your Life, Rich Habits Poor Habits and “Rich Habits: The Daily Success Habits of Wealthy Individuals.”
