What Wealthy People Know That the Rest of Us Don’t

Episode 357 – Do the ultra-wealthy belong to some secret club that no one else knows about? Of course not. But it’s safe to say that they do some things differently. And the rest of us could learn a few lessons from what they’ve figured out.

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Hello, this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode: what wealthy people seem to know that the rest of us don’t.

Do the ultra-wealthy belong to some secret club that no one else knows about? Of course not. But it’s safe to say that they do a few things differently. And the rest of us could learn some lessons from what they’ve figured out. Here are a few “unwritten rules” that help keep people wealthy.

The wealthy spend their money on owning assets, not just consumption. The wealthy prefer to spend money on things that either increase in value or generate income (or both). Spending money on buying—and maintaining—assets may be more boring than travel, takeout, or tickets to a concert, but you can build wealth by prioritizing assets with long-term growth.[1] They’re in it for the long term. The concept of delayed gratification is a big one for successful people. They’re in it for the long run. It doesn’t matter if it’s a business, a piece of real estate, or a financial investment. They all need time to grow.[2] They avoid unnecessary risks. Wealthy people tend to be cautious when it comes to investing. Once they become wealthy, their focus may shift from accumulating to preserving their wealth. And they pay special attention to inflation. In other words, making money and managing it are two separate skills.[3] They try to minimize taxes. It is critical to understand how taxes can drain your wealth, particularly over a few generations. But there are some creative ways to reduce the amount of taxes paid. In 1999, Peter Theil bought a portion of what would become PayPal, using $1,700 in a Roth IRA. The value of the company exploded, and the value of the account grew to $5 billion by 2021. When he reaches age 59½ in 2027, he will be able withdraw any amount he wishes from the account completely tax-free.[4]But that’s only half the battle. Step two is keeping the money in the family for future generations when the federal estate tax rate is up to 40 percent. Life insurance, which can be structured to be income- and estate tax-free, plays a critical role in wealth transfer, and not just for the ultra-wealthy. They strive to be financially literate. The wealthy understand timeless financial concepts such the value of investing early, the crushing long term effect inflation can have, and the value of diversification. But they also recognize that the rules change over time. You need to keep up with changes in the tax law and basic shifts in economics and financial markets. You don’t stop learning when you get out of school.[5] They don’t allow their children to treat wealth like a handout. Most wealthy people have heard the widespread warning, “shirtsleeves-to-shirtsleeves” the idea that family wealth tends to completely dissipate over three generations.[6] The implication is that second and third generations of a family can be lethargic and lack motivation, eating up all the wealth that their parents and grandparents had built. Informed wealthy people work very hard to avoid this with the way they raise their children and grandchildren.[7] They ask around. Facing a big financial decision? Looking through TikTok videos may not be the ideal way to get the information you need. Wealthy people instead try to find the best people they can to solve whatever problem they have. They speak directly to them.[8] They believe that long-term relationships are important. The wealthy tend to build relationships with people at places such as car dealerships and restaurants. Their relationships with people they work with are something quite valuable to them, and they often continue for many years. In other words, they know the power of networking and negotiation.[9] They’re never too wealthy to look for a good deal. Are wealthy people cheap? Not necessarily. They may not admit to it, but some just get a thrill out of getting a good deal on something. And it doesn’t have to be something big. It could be saving on a cellular data plan or getting a better deal on car insurance.[10] They look for multiple sources of income. The wealthy don’t live on just a paycheck. They have other means of accumulating wealth, such as rental income, royalties and dividends. According to a study by Tom Corley, author of Rich Kids: How to Raise Our Children to Be Happy and Successful in Life, about 65 percent of self-made millionaires have three or more sources of income. [11] They are disciplined. Another interesting finding from Corley: 81 percent of wealthy people say they make it a habit to control their thoughts, emotions and the words they use.[12] They choose value over price. Wealthy people are willing to pay more if it’s worth it to them. If they build a strong relationship based on trust, the extra costs may not matter as much to them. In the long run, it’s worth it.[13] They make new friends. Making and maintaining strong social connections has been shown to help improve your overall health and increase your lifespan. But there’s more. Friendships can also improve your happiness, lower your stress level, improve your self-confidence and self-worth, and help you get through hard times.[14]

When you think about it, every one of these ideas may be a good general principle. In other words, each of these can apply to you, whether you’re wealthy or not.

[1] Zumok, Zina. “These 5 Rules Separate the Rich From Everyone Else.” Kiplinger. https://www.kiplinger.com/personal-finance/5-rules-separate-the-rich-from-everyone-else (accessed October 14, 2025).

[2] Id.

[3] Sanders, Bryce. “11 Unwritten Rules That Keep People Wealthy.” ThinkAdvisor.com. https://www.thinkadvisor.com/2025/09/26/11-ways-wealthy-people-stay-that-way/ (accessed October 1, 2025).

[4] Elliott, Justin, Callahan, Patricia and Bandler, James. “Lord of the Roths: How Tech Mogul Peter Thiel Turned a Retirement Account for the Middle Class Into a $5 Billion Tax-Free Piggy Bank.” Pro Publica. https://www.propublica.org/article/lord-of-the-roths-how-tech-mogul-peter-thiel-turned-a-retirement-account-for-the-middle-class-into-a-5-billion-dollar-tax-free-piggy-bank (accessed October 2, 2025).

[5]  Zumok, Zina. “These 5 Rules Separate the Rich From Everyone Else.” Kiplinger. https://www.kiplinger.com/personal-finance/5-rules-separate-the-rich-from-everyone-else (accessed October 14, 2025).

[6] Jaffe. Dennis. “The ‘Shirtsleeves-To-Shirtsleeves’ Curse: How Family Wealth Can Survive It.” Forbes. https://www.forbes.com/sites/dennisjaffe/2019/01/28/the-shirtsleeves-to-shirtsleeves-curse-how-family-wealth-can-survive-it/ (accessed October 1, 2025).

[7] Sanders, Bryce. “11 Unwritten Rules That Keep People Wealthy.” ThinkAdvisor.com. https://www.thinkadvisor.com/2025/09/26/11-ways-wealthy-people-stay-that-way/ (accessed October 1, 2025).

[8] Id.

[9] Zumok, Zina. “These 5 Rules Separate the Rich From Everyone Else.” Kiplinger. https://www.kiplinger.com/personal-finance/5-rules-separate-the-rich-from-everyone-else (accessed October 14, 2025).

[10] Sanders, Bryce. “11 Unwritten Rules That Keep People Wealthy.” ThinkAdvisor.com. https://www.thinkadvisor.com/2025/09/26/11-ways-wealthy-people-stay-that-way/ (accessed October 1, 2025).

[11] Carley, Tom.  “Author who studies millionaires: How to get rich and then stay rich.” CNBC. https://www.cnbc.com/2018/02/16/financial-planner-tom-corley-how-to-get-rich-and-stay-rich.html (accessed October 14, 2025).

[12] Id.

[13] Sanders, Bryce. “11 Unwritten Rules That Keep People Wealthy.” ThinkAdvisor.com. https://www.thinkadvisor.com/2025/09/26/11-ways-wealthy-people-stay-that-way/ (accessed October 1, 2025).

[14] Mayo Clinic Staff. “Friendships: Enrich your life and improve your health.” Mayoclinic.org. https://www.mayoclinic.org/healthy-lifestyle/adult-health/in-depth/friendships/art-20044860 (accessed October 1, 2025).

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