10 Habits of Families Who Build Wealth Without Ever Earning Six Figures
According to Northwestern Mutual's 2026 Planning & Progress Study, exactly half of Americans described themselves as being financially secure, an increase from 44% last year. While headlines can often paint a dire financial picture, the reality is that many American families are still building wealth.
Ralph Estep Jr., a licensed public accountant (LPA) and the founder of Saggio Management Group, noted that some of the most financially secure families he worked with over the last 30 years never earned six-figure incomes. They stuck to a few simple habits and did them consistently.
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The following are 10 habits families use to build wealth even if they’re not earning six figures in income.
1. They Make Savings Automated
“They always pay themselves first and set up automatic transfers, so savings come out as soon as their paycheck arrives, even if it’s just a small amount,” Estep said. “This way, building wealth doesn’t rely on willpower at the end of the month.”
If you want to build wealth, you have to make savings your main priority so that you’re planning for the future.
2. They Have a Plan for Their Money
“You have to figure out how to effectively manage your money,” remarked Phillip Durbin, a financial advisor and financial educator at Learn Money Basics. The experts agreed that families who build wealth do so by keeping a plan for their money because you can’t manage what you don’t track. While there are different budgeting methods that you can follow, all that matters is that you find the system that you can realistically follow.
3. They Avoid Lifestyle Creep
“When their income goes up, they save the extra money instead of buying a bigger car or house,” per Estep.
Durbin noted that they avoid consumer debt and spending money on interest payments on stuff to impress their friends. He added, “Lifestyle inflation drives people to go into debt for things they don't need.”
4. They Don’t Take on Unnecessary Debt
On a similar note, these families won’t finance major purchases (like a new furniture set) because they don’t want to get into debt. They will save up for major purchases so that they don't have to deal with hefty interest rates.
5. They Avoid New Cars
Estep stressed that when it comes to cars, they choose reliable ones and drive them for more than 10 years, since car payments can really hurt a family’s finances. These families will also save up and maintain the vehicle properly to avoid spending money on repairs that could’ve been avoided.
6. They Have an Emergency Fund
They treat an emergency fund as a necessity so that if something breaks around the house, it’s an inconvenience rather than a credit card bill that takes years to pay off. While the experts recommend saving up anywhere from three to six months' worth of expenses, these families do whatever they can to build up any kind of savings just in case.
7. They Invest In Index Funds
Experts observed that these families invest regularly in index funds and always take advantage of employer matches in retirement accounts, since that’s free money. They won’t invest in risky assets or take unnecessary risks since they work hard for their money.
8. They Work Diligently To Reduce Expenses
Personal finance experts always point out that minor expenses can add up. Durbin stressed that while you're building wealth, you have to put your finances first because you want your money working for you. Little expenses can easily eat into a monthly budget and impact investments if you don’t stay on top of them.
9. They Have the Right Insurance
They make sure they have the right insurance for their homes and vehicles so that one disaster doesn’t destroy their entire finances. While it can be a hassle to negotiate insurance rates and review policies, the up-front work can save a family from major losses in the future.
10. They Openly Discuss Finances
Families that build wealth are known for openly discussing money at home so that their kids learn to be comfortable with their finances. They don’t allow money to become a taboo subject, since it’s something the whole family should try to align on if they want to build long-term wealth.
Estep concluded, “None of these habits require a high salary. They just take consistency and patience. For these families, wealth comes from sticking with good habits over time, not just from earning more”.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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