If you want to be rich, adopt these 4 habits in your lifestyle

Of course, the higher your income, the easier it is to cover your costs and still have money left over. But plenty of people with modest incomes still end up rich. The key is to keep fixed expenses (like housing and car payments) to no more than around 50% of income, limit discretionary spending to 30%, and save the rest.

1. Using credit cards wisely

Credit cards are not something to be scared of if you hope to become rich, despite what some financial experts will tell you.

It is 100% true you should avoid credit card debt if you want wealth in your future. With the average credit card interest rate coming in at 21.47%, carrying a balance makes building wealth a whole lot harder.

But you can and should use credit cards without ever paying a dime of interest. Charge only what you can afford and pay off your balance in full each month. Doing this can help make you richer in two ways.

It can help you to earn a good credit score that opens doors for you. This could make doing other things, like buying a house, a lot more affordable.

It can allow you to earn rewards that reduce the cost of your purchases. If you get a card offering 2% cash back and charge everything you can, you effectively get a 2% discount on all your purchases. That’s extra money you can use for your financial goals.

1. Getting loans only for the right reasons

You also shouldn’t be afraid of using other kinds of debt as a tool if you want to be rich. For example, getting a mortgage could help you buy a house — and homeowners have a net worth that’s 40 times higher than renters.