Here's What Millionaires Do With Their Paychecks That Most People Don't

Back when I landed one of my first "real" jobs, my manager told me to start putting money into our company 401(k) plan.

I had no idea what a 401(k) was at the time. But I idolized the guy, so I followed his lead.

Fast forward 17 years, and that single account has about $236,000 in it. And I only worked there for five years! That's the power of treating your paycheck the right way.

To become a millionaire, you have to think like one. And it all starts with how you treat your paycheck.

Pay yourself first (and automate it)

Before millionaires pay their bills and go shopping, they've already put money aside for themselves.

They automatically transfer a portion of their paycheck to a savings account, retirement plan, or brokerage account.

The trick is setting up automatic transfers. That way money is saved without even thinking about it. There's no forgetting, making excuses, or "accidently" spending it.

Here's how you can do it, too:

1. Decide how much to save. Start with 10% of your paycheck if you can, but less is OK to begin.
2. Set up automatic transfers on payday. If you have a company 401(k), use it! If not, opening an IRA is a good first step.
3. Gradually increase savings each year. Ideally, you'll want to put away 15%-20% of each paycheck for retirement. It becomes easier over time as you earn more and get used to saving.

Don't let cash sit in checking

It's smart to keep some cash handy. But where you store your cash makes a huge difference.

While most people park their money in checking accounts, millionaires use high-yield savings accounts (HYSAs) because they earn more interest (way more).

Right now the average checking account earns just 0.07% APY, while top HYSAs are paying around 4.10% APY. That's a huge difference.

Here's what that looks like with a $10,000 balance over one year:

Use credit cards the right way

Millionaires don't carry balances. They pay their cards off in full, every month, to avoid interest charges and build up their credit score.

But they also make the rewards system work in their favor. That means using cards that match their lifestyle and earn solid perks on everyday spending.

For example:

• A flat-rate 2% cash back card might earn $600 a year on $30,000 in annual spending.
• A travel card could earn valuable points on dining and flights – plus perks like trip insurance and rental car coverage.
• If you’re a business owner, paying for work-related expenses on a business card can earn you cash-back or service credits.

The key is using the right type of card that rewards you for the purchases you’re already making. And make sure the value outweighs any annual fee.

Looking for better rewards? Compare the best credit cards of May 2025 here and see what fits your lifestyle.

Millionaires look at ROI, not just price.

Millionaires don't just ask "What does this cost?" They ask "What do I get out of it?" They think about long-term value when buying things.

For example: A $1,500 vacation might seem "frivolous." But if it strengthens your marriage, recharges your mental health, and helps you perform better at work -- that's a great return on investment.

When you view spending as an investment (not just a cost), it becomes easier to align your paycheck with your values.