Want to Be Rich and Happy? Learn the 13 Habits India’s Wealthy Swear By
I’ve spent over two decades helping people from all walks of life—doctors, entrepreneurs, retired officers, young working couples, and single mothers—transform their financial chaos into clarity. But what always fascinated me was: What separates the financially “successful” from the rest?
Over the years, I began to notice a pattern. The top 1%—the truly wealthy and content Indians—weren’t always born with money. Many were first-generation millionaires. What made the difference were their habits.
Here are the 13 most powerful habits I’ve observed repeatedly among India’s wealthiest and happiest individuals. These aren’t just theories. These are practical habits that can be adopted by anyone, as they are lived experiences I’ve witnessed from my clients, my mentors, and even from my own life as a financial freedom coach.
- Make Your Money Work for You
In India, many people still believe in ‘safe’ savings—parking their money in fixed deposits (FDs), gold, or simply holding cash. But the wealthy? They think differently. They let their money earn for them while they sleep, a strategy that empowers them and instills a sense of confidence in their financial future.
I remember a client, Neha, a corporate executive in Gurugram. She once said, “My job earns me a salary, but my investments give me freedom.” We created a passive income portfolio through dividend-paying stocks, rental real estate, and mutual funds with SWPs.
The mindset shift is clear: don’t just earn money—build assets that continue to earn on your behalf.
- Never Put All Your Eggs in One Basket
Diversification isn’t just a buzzword—it’s a form of protection. When the markets fell in March 2020, one of my NRI clients had all his Wealth in equity mutual funds. Another client, a small business owner, had a well-diversified portfolio—comprising debt, gold, stocks, and real estate.
Guess who slept better at night?
Wealthy Indians understand the importance of diversification. They invest across multiple asset classes, industries, and even geographies, not just for returns but for resilience and financial security.
- Create at Least 3 Separate Income Streams
Most people rely solely on their jobs for income. But rich Indians? They typically have three or more income streams, including salary, side business, rental income, dividends, royalties, or consulting. This diversifying of income can reduce anxiety and increase financial freedom, giving a sense of liberation and independence.
One inspiring example: A couple I mentored started a weekend photography business. Today, it pays their EMI while their full-time jobs fund investments. Diversifying income can reduce anxiety and increase financial freedom.
- Use Legal Structures to Protect Wealth
Wealthy Indians don’t just earn—they protect. Legal tools, such as Hindu Undivided Families (HUFs), private trusts, insurance wrappers, and even family Limited Liability Partnerships (LLPs), are used not only for asset protection but also for tax efficiency and succession planning.
A business family in Delhi utilised a combination of HUF and family trusts to manage real estate income, ensuring a smooth generational transfer. Most middle-class Indians ignore this out of fear or ignorance.
- Save 20%, But Aim to Invest 50%
This habit changed my life.
When I began my journey as a young MBA graduate, I could barely save 10%. However, I observed that my wealthiest clients—despite their income levels—invested aggressively.
A retired Air Force officer, whom I guided for 12 years, never earned more than ₹80,000 per month. Yet his SIPs began at Rs 10,000 and grew to Rs 40,000 per month. Today, he’s worth over Rs 2.5 crore.
It’s not how much you earn—it’s how much you keep and invest that defines your future.
- Avoid Consumer Debt Like a Plague
There’s good debt (like a home loan), and then there’s bad debt—EMIs for gadgets, vacations, and weddings. I once had to work with a newly married couple drowning in credit card debt just six months into marriage—all from their “big fat wedding.”
Rich people in India understand this rule: borrow only to build assets, never to fund lifestyle inflation.
- Understand Tax Laws & Plan Legally
Wealthy individuals don’t evade taxes. They plan them smartly.
Using tax-saving mutual funds (ELSS), NPS, Section 54 exemptions on real estate capital gains, and HUF structures are just a few of the strategies I implement for my clients.
A salaried professional earning Rs 35,000 per year once told me, “I hate paying taxes.” But once we did proper tax planning, he saved over Rs 6 lakh legally in one year.
- Surround Yourself with Financially Wise People
“Show me your five closest friends, and I’ll show you your financial future.”
Wealthy Indians often socialise in circles where money is a topic of discussion, not taboo. They share insights, recommend advisors, and talk about wealth creation—not gossip.
That’s why I created The Richness Academy—to build a community that supports one another with financial knowledge and growth.
- Consume Books, Podcasts, and Courses
I’ve personally invested over Rs 20 lakh in my learning—from attending global conferences to acquiring books and certifications and participating in mastermind groups.
The wealthy don’t stop learning. They read “The Psychology of Money,” listen to finance podcasts, and attend wealth workshops—even if they’ve made crores.
Learning isn’t a one-time thing. It’s a lifelong habit of the rich.
- Think in Decades, Not Days
I recall advising a young software engineer from Bengaluru to start a Rs 15,000 monthly Systematic Investment Plan (SIP). He said, “But it feels too small.”
Today, that SIP alone has crossed Rs 14 lakh in value.
The wealthy play the long game. They think in decades, not days. They aren’t bothered by short-term volatility. They know the power of compounding.
- Always Negotiate – Even the Small Stuff
In India, we often hesitate to negotiate. However, wealthy individuals often negotiate everything—from rent for their homes and purchases of cars to business contracts and credit card fees.
One of my clients saved Rs 60,000 per year simply by negotiating his health insurance premium for his family based on his clean track record and by porting wisely.
Every rupee saved is a rupee earned and reinvested.
- Master Emotional Control
Wealth isn’t just about numbers—it’s about behaviour.
The stock market falls? Don’t panic.
A business deal goes wrong? Learn and move on.
Everyone’s buying Bitcoin? Pause and think.
I teach my clients emotional fitness—not just financial literacy. Because money magnifies who you already are. If you’re impulsive, it shows in your bank balance. If you’re patient, it shows in your portfolio.
- Align Wealth With Your Life’s Purpose
This one’s personal.
Over the years, I’ve seen clients accumulate money but lose joy. One particular businessman in Mumbai sold his company for Rs 70 crore. But he confessed, “I missed watching my daughter grow up.”
That’s when I began asking every client: Why are you building Wealth? What’s the real goal—freedom, impact, peace?
The happiest rich people in India use Wealth as a tool, not a trophy.
Disclaimer & About the Author: This article is for informational purposes only. Readers should consult a qualified financial advisor before making decisions. Taresh Bhatia, CFP® (CERTIFIED FINANCIAL PLANNER™) and founder of The Richness Academy empowers individuals to achieve financial freedom. Send queries to taresh@tareshbhatia.com or Say “Hi” on WhatsApp +919810127906 register for his webinar: https://couplefinanceformula.in. or Explore More Resources: www.tareshbhatia.com.
