What Do Warren Buffett, Richard Branson, and IKEA’s Founder Have in Common? These 5 Habits Revealed
- 1. Living Below Your Means: The Billionaire’s First Rule
- 2. Long-Term Investing: The Tortoise Beats the Hare
- 3. Obsessive Reading: Knowledge as Compound Interest
- 4. Ruthless Time Management: Your Most Valuable Asset
- 5. Strategic Networking: It’s Who You Know (and How)
- The Bottom Line: Wealth Is a Habit, Not a Windfall
Ever wondered how the world’s wealthiest individuals built their fortunes? Spoiler: It’s not luck or secret formulas. From Warren Buffett’s frugal lifestyle to Richard Branson’s networking genius, this article unpacks the five non-negotiable habits shared by billionaires—proving that wealth-building is more about consistency than complexity. Whether you’re saving your first dollar or managing a portfolio, these principles are your blueprint.
1. Living Below Your Means: The Billionaire’s First Rule
Forget flashy cars and private jets—the richest people on the planet often live shockingly modestly. Why? Because wealth isn’t about income; it’s about spending less than you earn. Take Ingvar Kamprad, the late founder of IKEA. Despite a net worth in the billions, he flew economy, drove a decades-old Volvo, and even got haircuts in cheaper countries to save money. Then there’s Warren Buffett, who still lives in the same Omaha house he bought in 1958 for $31,500. His advice? “If you buy things you don’t need, you’ll soon sell things you do.”
Practical Takeaway:
Track every expense for a month. Cut non-essentials (yes, that $5 daily latte counts). Redirect those savings into investments—even small amounts compound over time.
2. Long-Term Investing: The Tortoise Beats the Hare
Buffett didn’t become the “Oracle of Omaha” by day-trading. His strategy? Buy businesses he understands, hold them for decades, and ignore market noise. As he famously quipped, “Our favorite holding period is forever.” This mirrors data from TradingView showing that S&P 500 investors who held for 20+ years averaged 10% annual returns—despite crashes along the way.
Case in Point:
Buffett’s Berkshire Hathaway has held Coca-Cola stock since 1988. That $1.3 billion investment is now worth over $24 billion—proof that patience pays.
3. Obsessive Reading: Knowledge as Compound Interest
Billionaires treat books like oxygen. Buffett spends 80% of his day reading, while Charlie Munger calls books “how you get a $200,000 education for $1.50 in late fees.” Their reading list? Annual reports, biographies, and industry deep-dives—not clickbait headlines.
Try This:
Start with 20 minutes of morning reading. Focus on financial literacy (try “The Psychology of Money”) or skill-building. Over a year, that’s 121 hours of self-education.
4. Ruthless Time Management: Your Most Valuable Asset
Kamprad built IKEA’s frugal culture by timing meetings to the minute and reusing paper clips. Buffett blocks entire days for “thinking time.” The lesson? Distraction is the enemy of wealth. A Stanford study found multitaskers are 40% less productive—costing you both time and money.
Hack Your Schedule:
Batch tasks (e.g., answer emails twice daily). Use tools like Toggl to audit time leaks. Protect 2-hour “focus blocks” for high-impact work.
5. Strategic Networking: It’s Who You Know (and How)
Richard Branson credits Virgin’s success to his “coffee habit”—meeting strangers weekly. His tactic? Offer value first. Early on, he traded free PR flights for musician contacts, later launching Virgin Records. LinkedIn data shows 85% of jobs come from networks, yet most people only network when they need something.
Action Step:
Attend one industry event monthly. Follow up with a personalized message—not a generic LinkedIn request.
The Bottom Line: Wealth Is a Habit, Not a Windfall
Buffett’s $117 billion net worth wasn’t built in a day. It’s the sum of 70+ years of frugality, investing, and learning. The good news? These habits work at any income level. Start small: save $100/month, read 10 pages daily, or connect with one new person weekly. As the BTCC research team notes, “Financial freedom isn’t about getting rich quick—it’s about staying rich long.”
