George Kamel, a personal finance educator and self-made millionaire, recently shared eight surprising millionaire habits that show up across the wealth-building stories he has studied. In a YouTube video, Kamel discussed how frugality, hard work, and risk management consistently appear in real millionaire households. For self-employed people whose income is variable and whose retirement is entirely self-funded, these habits hit even harder.
I have spent years writing about how solopreneurs build long-term wealth without a corporate match or pension. The patterns I see in the field match what Kamel describes: boring, repeatable, frugal moves that compound for decades. None of them require a viral business or a crypto windfall.
Millionaire habit 1: own a home that appreciates
According to Kamel, millionaires usually own homes that appreciate and grow their net worth. They also tend to pay off their mortgages in an average of just over a decade, leading to substantial interest savings.
For self-employed people, the housing decision is more nuanced because mortgage approval can be harder. The U.S. CFPB’s homebuying resource walks through documentation lenders typically request from self-employed borrowers, including two years of tax returns and profit-and-loss statements. Once you have the paperwork lined up, the long-run wealth case for a primary residence remains strong.
Millionaire habit 2: drive practical cars
Despite misconceptions, you are more likely to find a millionaire driving a four-year-old Ford or Honda than a luxury car like a BMW or Mercedes. Kamel highlights this as one of the most consistent millionaire habits in the data.
For self-employed people, the calculation has an extra wrinkle. A reliable used car keeps your business running without sinking your cash flow into a depreciating asset. If you drive for client work, our essential forms guide covers the mileage and vehicle expense rules that affect your tax bill.
Millionaire habit 3: keep clothing budgets modest
Millionaires often have a lower monthly clothing budget than the typical American and use coupons. Kamel explained that frugal clothing choices, like shopping at Target or Costco, heading to thrift stores, or even borrowing clothes from others, help in building wealth.
For self-employed people working from a home office, clothing costs are often even easier to keep low. The savings, redirected to retirement contributions, can compound into hundreds of thousands of dollars over a working life.
Millionaire habit 4: keep a real emergency fund
Kamel said that millionaires prioritize having an emergency fund to protect against large, unexpected expenses. Many of them save 16 percent or more each month, and he recommends that anyone have at least three to six months of expenses in a high-yield savings account.
For self-employed people, six to twelve months is closer to the right target because client losses can be sudden. Our self-employed bookkeeping guide covers how to track this reserve cleanly without mixing it into business operating cash.
Millionaire habit 5: give every dollar a job
Wealthy people do not spend willy-nilly; they give every dollar a job.
Budgeting has a place regardless of wealth, and knowing your expenses and how you use your income is essential for good money management and helps avoid debt. For self-employed people, this is especially important because business and personal money can blur. A simple rule: every dollar that hits your business account gets categorized within 7 days into operating expenses, taxes, owner pay, or reserves.
Millionaire habit 6: use compound growth ruthlessly
Millionaires understand how compound growth benefits them over time. Kamel discussed how both investments and their earnings grow, making most of a retirement fund’s value come from growth rather than direct contributions. He advises putting 15 percent of earnings toward investments.
For self-employed people, the SEP-IRA and Solo 401(k) make this much easier than most realize. The IRS SEP-IRA page covers the rules. Both vehicles let you contribute substantially more than a typical employee 401(k), which can accelerate the compounding curve significantly.
Millionaire habit 7: skip permanent life insurance
According to Kamel, millionaires avoid permanent life insurance due to high commissions and fees and the loss of benefits if premiums are not maintained. He suggests term life insurance as a fraction of the cost of whole life insurance, allowing for additional investments to build wealth.
This advice translates well for self-employed pros. Term life is cheaper, simpler, and easier to right-size to your actual income-replacement need. The savings can flow directly into the retirement vehicles above.
Millionaire habit 8: have a will
Kamel highlighted the importance of having a will, as 76 percent of Americans do not have one, risking their assets not going to intended heirs. He recommended making a will online to ensure one’s wealth is protected and distributed as desired.
For self-employed people, a will is even more important because business assets, intellectual property, and ongoing client contracts all need clear instructions. Many estate-planning platforms now include simple business succession provisions you can edit yourself.
Putting the millionaire habits to work in a self-employed business
By following these eight millionaire habits, Kamel believes anyone can take steps toward building and protecting their wealth. The key for self-employed people is to translate each habit into a system, not a goal. A 15 percent retirement contribution rate becomes an automatic transfer the day every client invoice clears. A six-month emergency fund becomes a separate high-yield account that you do not touch.
If you are still building the business income that funds these habits, our self-employment ideas guide covers a wide range of starting points.
Frequently asked questions
What are the most common millionaire habits?
Common millionaire habits include owning a home, driving practical cars, keeping a modest clothing budget, maintaining a real emergency fund, budgeting every dollar, investing consistently, choosing term life insurance, and having a will.
How much do millionaires save each month?
George Kamel reports that many millionaires save 16 percent or more of their monthly income. He recommends that everyone aim for at least 15 percent toward long-term investments.
Do millionaires really drive used cars?
According to Kamel’s data, the typical millionaire is more likely to drive a four-year-old Ford or Honda than a luxury car. The pattern reflects the broader frugal mindset that allows surplus cash to flow into investments.
Why do millionaires avoid permanent life insurance?
Permanent life insurance carries high commissions and fees and can lose value if premiums lapse. Term life insurance provides equivalent coverage at a fraction of the cost, leaving more money to invest elsewhere.
How do these millionaire habits apply to self-employed people?
Self-employed people benefit even more from these habits because there is no corporate match or pension. The SEP-IRA, Solo 401(k), and disciplined cash management all amplify the impact of consistent saving and investing.
What is the easiest millionaire habit to start with?
Setting up an automatic transfer to a high-yield savings account on the day each invoice clears. It builds the emergency fund, enforces budgeting, and creates the cash buffer that makes every other habit possible.
Photo by Bradley Pisney on Unsplash
