By: Joey Casolaro, CFP®
If you've spent more than five minutes on social media, you've probably encountered at least one of these claims.
"Your 401(k) is a scam."
"The IRS doesn't want you to know this one trick…"
"You Get Stock Market Returns With No Risk."
"Always take Social Security as soon as possible."
These viral "hacks" and catch phrases aren't designed to help you, but instead, generate as many views and clicks as possible so their creators can profit.
The truth is, building and maintaining wealth doesn't come from flashy tricks and secret loopholes. It comes from habits that, although they may sound boring, are proven to work as long as you can stay persistent, prudent, and patient.
As we move into 2026, here are five financial habits that actually work to build and maintain long-term wealth.
1. Living Below Your Means (Even as Income Grows)
One of the most powerful (and least flashy) wealth-building habits is maintaining a gap between what you earn and what you spend. Unfortunately, many people get tripped up because, as their income increases, lifestyle expenses tend to rise with it. This subsequent increase in lifestyle spending causes every raise to become an excuse for:
A bigger house
A newer car
More frequent vacations
More dining out
This phenomenon, often referred to as "lifestyle creep," is why many high earners still feel financially strained. A household earning $150,000 that saves 20% ($30,000) will accumulate far more wealth than a household earning $250,000 that saves 5% ($12,500). Income matters, but the gap between earnings and spending matters more.
2026 habit: Let your savings and investments grow faster than your lifestyle.
2. Consistently Investing (Yes, Including Your 401(k))
Despite what social media suggests, contributing and then investing in your 401(k) remains one of the most effective wealth-building tools available. It provides:
Tax-deferred or tax-free growth, depending on whether you choose a traditional or Roth option
Automatic paycheck contributions that remove emotion and decision-making
Employer matching, which is often an immediate 50–100% return on your contribution
Additionally, contributing to brokerage accounts complements retirement plans by providing flexibility that tax-advantaged accounts don't. They have no contribution limits, no age restrictions, and the money can be used for any goal at any time without early withdrawal penalties.
The key with investing in any type of account is setting up automatic contributions from your paycheck, as it removes emotion, creates consistency, and ensures you're investing regularly without trying to time the market.
2026 habit: Set up systematic investing contributions so wealth is built automatically, not emotionally.
3. Tax Planning: The Silent Wealth Builder
Wealth isn't only about how much you earn or how well your portfolio performs, but also about how much you keep.
Smart financial habits include:
Maximizing tax-advantaged accounts, such as contributing to a health savings account (HSA), 401(k), or cash balance plan when eligible, and investing it for long-term, tax-deferred and tax-free growth
Strategic Roth conversions during lower-income years
Tax-efficient investment placement
Thoughtful withdrawal strategies in retirement
Philanthropic and charitable giving strategies
Over time, tax planning decisions can matter just as much, if not more, than investment returns.
2026 habit: Treat tax planning as an ongoing strategy, not a once-a-year task.
4. Keeping Cash on Purpose (Not by Accident)
Holding cash isn't a mistake as long as a plan is in place. The risk is having excess cash without any strategy and missing out on market returns.
Well-structured cash reserves help cover:
Emergencies
Near-term spending needs
Market fluctuations without forcing investment sales
A cash reserve creates peace of mind and allows long-term investments to remain invested when markets become unstable.
2026 habit: Maintain intentional cash reserves so your portfolio can do its job.
5. Ignoring Short-Term Market Noise
There will always be a concern or risk out there that will cause markets to fluctuate. The investors who build wealth over time aren't the ones predicting interest rate changes, election outcomes, or the next market correction. They're the ones who stay disciplined while others react emotionally.
Historically, investors who:
Try to time the market
Make frequent changes based on headlines
Chase what's "working now" or the "hot investment"
tend to underperform those who stay consistent.
2026 habit: Focus on long-term goals, not short-term predictions.
Final Thought
Social media is great at grabbing attention and terrible at delivering sound financial planning advice. If shortcuts actually worked, wealth wouldn't be rare. Long-term wealth is built by individuals who disregard the noise and consistently adhere to proven fundamentals.
In 2026, the habits that matter most remain unchanged:
Spend intentionally. Invest consistently. Plan for taxes. Have a handle on your cash. Ignore the noise. Repeat.
If you'd like to review whether your current habits and strategies still align with your long-term goals, we're always here to help.
Joey Casolaro is a CERTIFIED FINANCIAL PLANNER® at HIGHLAND Financial Advisors, a Fee-Only fiduciary wealth advisory firm that offers comprehensive financial planning, retirement planning, and investment management. Joey graduated from the University of South Florida with a bachelor’s degree in personal finance and successfully passed the CFP national exam in 2021. Joey enjoys working out, spending time outdoors, and hanging out with family and friends in his free time.
The foregoing content reflects the opinions of Highland Financial Advisors, LLC, and is subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions, or forecasts provided herein will prove to be correct.
Past performance may not be indicative of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses, which would reduce returns.
Securities investing involves risk, including the potential for loss of principal. There is no assurance that any investment plan or strategy will be successful or that markets will act as they have in the past.
The above article was written with the assistance of artificial intelligence (AI).