Buzz
You've likely come across articles outlining Warren Buffett's daily habits, Elon Musk's pre-lunch meals, or the so-called 'one trait' that distinguishes the rich from the poor. While these insights are intriguing, they don't offer a true understanding of what it takes to achieve wealth and success. In fact, they may even hinder your progress.
The Problem of Correlation and Causation
Here are a few habits I've observed in wealthy individuals:
Rise early
Maintain a to-do list
Make birthday calls
Engage in frequent networking
Read numerous books or articles
These habits are undoubtedly positive, but claiming they directly lead to wealth is a significant overstatement. In fact, many of these habits are actually flawed. Once you're wealthy, you have the freedom to do things like wake up early and enjoy some personal time.
It's one thing to explore the habits of the rich and successful simply because they're fascinating. We've even written about the daily routines of famous creative minds ourselves—it's fun! These habits can be motivating. However, suggesting that these habits will actually make you wealthy is misguided and, ultimately, unhelpful. Not only is there no proven connection between a habit and wealth, but there isn't even a clear correlation. Many people with limited means also make birthday calls.
Personal Finance Is Personal
These profiles imply that if you adopt the habits of wealthy business leaders or Silicon Valley investors, you'll become rich as well. Sure, habits play a role in managing your finances. So do rules. But personal finance isn't about mimicking others' habits or blindly following rules. It's about discovering what works for you—and taking action based on that.
When we promote the idea that there's a straightforward blueprint for achieving wealth and success, we overlook what truly drives success: resourcefulness. I appreciate how Chris Guillebeau put it in an episode of the Smart Passive Income podcast:
There are always profiles of famous business figures, like, 'Here’s what Warren Buffett does every day. If you follow his routine, you’ll become just like him.' But that’s completely unrealistic. Most people don’t have the same resources as these individuals. We don’t have tens of thousands of employees to manage. We don’t have billions of dollars like Warren Buffett. We can’t simply ask, 'What works for Warren Buffett? What works for Mark Zuckerberg?'...
Instead, we need to ask, 'What works for us?'
This isn't to say you shouldn’t develop positive habits. It's not about saying you shouldn’t keep a to-do list, call people on their birthdays, or wake up early—just like wealthy people do. Those habits might make you more productive or happier. However, adopting these habits won’t make you wealthy and successful. If it were that simple, we’d all be rich. What really builds wealth is focusing on how to take charge of your own unique situation.
Most 'Habit Profiles' Provide Random, Simplistic Advice
The main issue with most habit profiles is that the habits are often arbitrary and lack substance.
For instance, yes, Warren Buffett’s investment habits are certainly worth studying since he's regarded as the world's greatest investor. His financial mindset is valuable too. But the fact that he reads 500 pages a week? That’s great for him, but it doesn’t really offer much value for the rest of us. We all know reading is beneficial, but reading alone isn’t the key to Buffett's success. According to him, he built his wealth through passive investing. Now that’s a lesson worth learning for anyone looking to achieve financial success like Buffett. The idea that adopting one random habit can lead to wealth is an oversimplified and misleading approach to financial advice.
As Guillebeau suggests, if you're going to study habits, it might be more useful to look at the routines of ordinary people—just like you—who are making progress in improving their finances. Not just progress in general, but real progress in ways that matter to you, whether that’s investing, finding extra time in your day, or mastering money management. This is exactly why personal finance blogs are so popular (and often such great resources). They're written by real people with realistic lifestyles who share what genuinely works for them.
In brief, focus on the context, not just the behavior. Consider the full relationship between the source, the habit, and the outcome.
This isn’t to say that these habits aren’t valuable. I read habit profiles and find them enjoyable.
However, they don’t help much when it comes to learning how to build wealth and succeed in your career. While these habits may have worked for those individuals, achieving wealth involves hard work, dedication, and taking action. It’s not simply about waking up early, watching less TV, or keeping a journal.
Illustration by Fruzsina Kuhári.
