High-net-worth individuals (HNWI) enjoy plenty of financial freedom. If you want to have the flexibility to do more with your money too, consider picking up some of the most common habits of the comfortably
wealthy. The following are prudent habits anyone can use to build and maintain wealth.


1. Spend less than you earn

Rule number one of avoiding excessive debt and always having enough is to spend less than you earn.

To make this your reality, create a household budget. Take a look at where your income goes every month. Identify any places where you could spend less and save more. One way to easily turn this into a habit is to set up a monthly automatic withdrawal from your bank account to invest in your RRSP or TFSA.


2. Minimize debt and maximize assets

HNWIs know that too much debt can diminish your financial reach. On the other hand, the best way to get more out of your resources is to own assets that pay back some type of return. So, they tend to buy some assets upfront, for example, paying cash for a new car instead of taking out a loan. Or, they may pay a large down payment when buying an investment property. They will also purposefully buy assets to create an income stream of interest or dividends.

3. Be strategic about tax management

To optimize the money you earn and invest, be sure to claim all the tax deductions you qualify for and take advantage of ways you can enjoy tax savings. This is where you have the potential to save a lot of money by consulting with a financial advisor who understands tax planning and management.

 

4. Build up ample financial cushion

Many of our high-net-worth clients have six to nine months of their monthly expenses set aside in a savings account. This is an excellent tactic for avoiding debt. If you need money to pay for a medical bill, a surprise car repair, or a new air conditioner for your home, you don’t have to use credit. Knowing you have plenty set aside can also help you make financial decisions confidently.

 

5. Never stop learning about money

HNW individuals understand the value of knowledge. To help them navigate financial decisions, they may read books, listen to podcasts, and seek advice from qualified financial professionals. Even if you use a financial advisor to help you navigate your financial journey, it’s still worth your time to educate yourself about personal finance and investing essentials.

 

For more insights on building wealth, read some of the other articles published on our blog. It’s filled with useful tips and information for individual investors!

 

© Bellwether Investment Management Inc. (“Bellwether”), 2025. Bellwether is registered as a Portfolio Manager, Investment Fund Manager, and Exempt Market Dealer in applicable jurisdictions. This material is provided for general informational purposes only and does not constitute investment, legal, or tax advice. It is intended solely for residents of the provinces in which Bellwether is registered and is not a solicitation to individuals in any other jurisdiction. The views expressed do not guarantee future performance or returns. While some information may have been obtained from sources believed to be reliable, Bellwether makes no representation or warranty as to its accuracy or completeness. Neither Bellwether Investment Management Inc. nor Bellwether Family Wealth provides tax advice. Therefore, we recommend that you consult your professional tax advisor for guidance on your tax planning. Any references to specific securities are for illustrative purposes only and do not constitute a recommendation to buy or sell.

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