3 Banking Habits of Millionaires

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Many of our stereotypes around millionaires come from TV and movies where we see the ultra-rich swanning around in luxury, driving fast cars, and taking expensive vacations. The reality is that many self-made millionaires got there by being frugal, making consistent investments, and avoiding unnecessary spending.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
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Click here to read our full review for free and apply in just 2 minutes. But what can we learn from their banking habits? Here are three that many of us can emulate.1. Millionaires have easily accessible cash in case they need itIf there’s one piece of money wisdom I’ve heard more than any other, it is this: You need an emergency fund. That’s something high-net-worth individuals certainly live by. A recent Bank of America Private Bank study of wealthy Americans showed that they keep almost 20% of their assets in cash.Having three to six months of living expenses socked away in a high-interest savings account cushions you against the unexpected. That cash is there in case you lose your job or have to cover a medical expense. It can help you avoid taking on high-interest debt, reduce stress, and free you up to invest with a long-term perspective.What it means for you: If you’re already worried about how to cover your essential bills each month, an emergency fund may seem like an unattainable luxury. It’s certainly much easier to build that kind of financial security when you have money to spare.Even so, many of us can put some cash aside for emergencies. Look over your recent bank statements and see if you might be able to cut $10 or $20 from your weekly costs. Perhaps there’s a subscription you aren’t using or some spending areas you could cut back on. If you put $10 a week into your savings account, you’ll have $500 within a year. That’s a great start.As your balance grows, your savings will start to earn more interest and actively work for you. Check out our top high-yield savings accounts to find a good home for your savings.2. Millionaires check their balancesIf you assume that millionaires have so much cash that they don’t have to think about it, you’d be wrong. Almost all the self-made millionaires Tom Corley interviewed for his book Rich Habits, Poor Habits said they balanced their checkbooks every month.You don’t see many checkbooks these days. But the process of tracking your transactions and making sure everything adds up is useful. It will help you stay in control of your money, avoid overdraft fees, and spot fraud early.What it means for you: I like to sit down and check in with my money every couple of weeks. It only takes 10 to 15 minutes, especially as technology makes it easier than ever. In addition to online banking, all the best checking accounts have mobile apps so you can manage your money no matter where you are.If you’re trying to pay down debt, build your retirement fund, or save for a specific goal, try to make balancing your books part of your routine. That way, managing your money becomes a habit rather than a dreaded chore you continually push to tomorrow.3. Millionaires avoid credit card debtAccording to Corley’s research, only 3% of self-made millionaires carry a balance on their credit cards. Credit cards often charge high rates of interest, which can eat into your budget. If you’re spending money on interest payments, that’s money you can’t invest or save for the future.Don’t get me wrong — millionaires do use their credit cards. Over 90% of self-made millionaires said they had credit card rewards points or dollars. But they pay their balances off at the end of each cycle, so they get the benefits without the interest costs.What it means for you: If you carry a balance on your credit card, you’re likely hyper-aware of how much you spend in interest. And you’re not alone. The Federal Reserve estimates that almost half of American households carry a credit card balance.If you’re unsure about how to tackle your balance, start by making a repayment plan with clear goals about how much you’ll pay off each month. See if you can aggressively cut your spending or increase your income, even for a short period. Put any extra cash toward your balances.More widely, avoid using your credit card for spending that you can’t cover. If you can’t afford to buy something outright, try to delay the purchase until you’ve saved enough.Key takeawayA lot of self-made millionaires got there by freeing up as much cash as possible and investing it. Investing involves buying assets that you believe will accumulate value over time. By living relatively frugally and investing extra cash, over time, you could also become a millionaire.The way you bank is one aspect of building wealth, and it says a lot about your attitude toward money. Building an emergency fund, avoiding high-interest debt, and monitoring your financial situation are all habits that will help you reduce your spending and free up cash to invest for the future.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Bank of America is an advertising partner of Motley Fool Money. Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bank of America. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Many of our stereotypes around millionaires come from TV and movies where we see the ultra-rich swanning around in luxury, driving fast cars, and taking expensive vacations. The reality is that many self-made millionaires got there by being frugal, making consistent investments, and avoiding unnecessary spending.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

But what can we learn from their banking habits? Here are three that many of us can emulate.

1. Millionaires have easily accessible cash in case they need it

If there’s one piece of money wisdom I’ve heard more than any other, it is this: You need an emergency fund. That’s something high-net-worth individuals certainly live by. A recent Bank of America Private Bank study of wealthy Americans showed that they keep almost 20% of their assets in cash.

Having three to six months of living expenses socked away in a high-interest savings account cushions you against the unexpected. That cash is there in case you lose your job or have to cover a medical expense. It can help you avoid taking on high-interest debt, reduce stress, and free you up to invest with a long-term perspective.

What it means for you: If you’re already worried about how to cover your essential bills each month, an emergency fund may seem like an unattainable luxury. It’s certainly much easier to build that kind of financial security when you have money to spare.

Even so, many of us can put some cash aside for emergencies. Look over your recent bank statements and see if you might be able to cut $10 or $20 from your weekly costs. Perhaps there’s a subscription you aren’t using or some spending areas you could cut back on. If you put $10 a week into your savings account, you’ll have $500 within a year. That’s a great start.

As your balance grows, your savings will start to earn more interest and actively work for you. Check out our top high-yield savings accounts to find a good home for your savings.

2. Millionaires check their balances

If you assume that millionaires have so much cash that they don’t have to think about it, you’d be wrong. Almost all the self-made millionaires Tom Corley interviewed for his book Rich Habits, Poor Habits said they balanced their checkbooks every month.

You don’t see many checkbooks these days. But the process of tracking your transactions and making sure everything adds up is useful. It will help you stay in control of your money, avoid overdraft fees, and spot fraud early.

What it means for you: I like to sit down and check in with my money every couple of weeks. It only takes 10 to 15 minutes, especially as technology makes it easier than ever. In addition to online banking, all the best checking accounts have mobile apps so you can manage your money no matter where you are.

If you’re trying to pay down debt, build your retirement fund, or save for a specific goal, try to make balancing your books part of your routine. That way, managing your money becomes a habit rather than a dreaded chore you continually push to tomorrow.

3. Millionaires avoid credit card debt

According to Corley’s research, only 3% of self-made millionaires carry a balance on their credit cards. Credit cards often charge high rates of interest, which can eat into your budget. If you’re spending money on interest payments, that’s money you can’t invest or save for the future.

Don’t get me wrong — millionaires do use their credit cards. Over 90% of self-made millionaires said they had credit card rewards points or dollars. But they pay their balances off at the end of each cycle, so they get the benefits without the interest costs.

What it means for you: If you carry a balance on your credit card, you’re likely hyper-aware of how much you spend in interest. And you’re not alone. The Federal Reserve estimates that almost half of American households carry a credit card balance.

If you’re unsure about how to tackle your balance, start by making a repayment plan with clear goals about how much you’ll pay off each month. See if you can aggressively cut your spending or increase your income, even for a short period. Put any extra cash toward your balances.

More widely, avoid using your credit card for spending that you can’t cover. If you can’t afford to buy something outright, try to delay the purchase until you’ve saved enough.

Key takeaway

A lot of self-made millionaires got there by freeing up as much cash as possible and investing it. Investing involves buying assets that you believe will accumulate value over time. By living relatively frugally and investing extra cash, over time, you could also become a millionaire.

The way you bank is one aspect of building wealth, and it says a lot about your attitude toward money. Building an emergency fund, avoiding high-interest debt, and monitoring your financial situation are all habits that will help you reduce your spending and free up cash to invest for the future.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Bank of America is an advertising partner of Motley Fool Money. Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bank of America. The Motley Fool has a disclosure policy.

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