Elon Musk’s 16 Money Habits That Helped Build His Wealth
Elon Musk is known as the richest man on the planet, but he didn’t get there by playing it safe or following bad money habits. He’s blunt, bold, and when it comes to personal finance, he doesn’t sugarcoat a thing.
This gallery breaks down the top money habits Musk says will keep you poor, and what to do instead.
Click or Scroll through the slides to see which of these mistakes might be costing you more than you think.
Table of Contents
Avoiding Investment Risk and Playing It Safe
After the PayPal sale, Musk didn’t cash out and disappear. He put $100 million into SpaceX, $70 million into Tesla, and $10 million into SolarCity, “I had to borrow money for rent,” he admitted.
That’s not recklessness. That’s conviction.
Meanwhile, nearly 50% of Americans say they’re too nervous to invest right now. Playing it safe might feel responsible, but long-term, it guarantees stagnation. Growth happens when you stop playing defense and start backing your own bets.
Thinking Too Small About Money and Success
Most people aim for survival. Musk plays for legacy. There’s a reason he’s constantly building the next thing instead of coasting on what he’s already done.
He once said, “If something is important enough, even if the odds are against you, you should still do it.”
Comfort zones kill momentum. Thinking small might protect your ego, but it won’t get you financial freedom. You don’t need permission to dream bigger, just guts.
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Living Without a Clear Mission
Most people want more money, but they can’t explain what for. That’s why they burn through it fast when they finally get some. As he put it, “There have to be reasons that you get up in the morning and you want to live.”
Without a purpose, money becomes just another way to stay busy, not build freedom. Clarity is underrated, and powerful.
Following Outdated Financial Advice
Elon has slammed what he calls the “MBA-ization of America,” arguing that too many so-called leaders focus on meetings instead of making things better. He’s never been one to follow the standard playbook.
Most people stick to advice passed down from family or outdated financial gurus, and that’s exactly why they stay stuck. The economy changes fast, and old rules won’t build new wealth.
We also made this related Video: If I Listened To “Good Advice,” I Would Not Have Retired At 42
Waiting for the “Perfect” Time to Start
SpaceX wasn’t launched under ideal conditions. Tesla nearly failed more than once. But things moved anyway. As Musk puts it, “Failure is an option here. If things are not failing, you are not innovating enough.”
People stay broke waiting for signs, stability, or certainty. Action beats timing every time. Start now, or someone else will.
Spending Instead of Delaying Gratification
When Elon Musk sold Zip2 in 1999 for ~$307 million (his share ~$22 million), he didn’t go on a spending spree for mansions or luxury toys.
Instead, he poured nearly every cent into X.com, the startup that became PayPal, betting it all on his next big idea.
This has been his playbook ever since. As he scaled SpaceX, Tesla, and beyond, turning millions into billions, Musk consistently funneled his wealth back into his companies, not into personal splurges like sprawling estates or car collections.
The average person does the opposite. A big paycheck hits, and it’s time for a new ride, a bigger house, or a flashy vacation. Musk got this early: real wealth comes from patience and reinvestment, not showing off.
A Rare Exception To Musk’s Relative Frugality
A rare exception was his 1999 purchase of a $1 million McLaren F1—a brief detour for a guy wired for risk over luxury. He even crashed it, uninsured, in 2000.
When Musk sold the car, even though it was crashed, he turned a profit.
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Letting Fear Stop You from Taking Action
He didn’t have a degree in aerospace engineering, but still built rockets. He didn’t come from the auto world, but changed both forever. As he puts it, “The first step is to establish that something is possible; then probability will occur.”
Most people wait to feel ready. Musk just starts, figures things out as he goes, and refuses to let inexperience be an excuse. You don’t need all the answers, you need to move.
Resisting Change in a Fast-Moving World
“Some people don’t like change,” Musk said, “but you need to embrace change if the alternative is disaster.” He’s built businesses around rapid disruption, cars, rockets, AI, and bets on what’s next, not what’s familiar.
People who fear change get left behind. Markets shift, industries fade, and technology rewrites the rules. Adapting fast isn’t optional, it’s survival.
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Confusing Hard Work with Smart Work
He’s famous for sleeping on factory floors and pulling 100-hour workweeks, but the goal isn’t hustle for its own sake. Musk has said, “If there was a way I could not eat so I could work more, I would not eat.” That’s obsession, not busywork.
People wear burnout like a badge, but effort without aim is just noise. Working smart means focusing on results, not time spent. Make your hours count.
Prioritizing Paychecks Over Ownership
Paychecks cover rent. Equity builds freedom. That’s why Musk’s entire net worth is tied to companies he helped build, not some corporate salary. He plays the long game, not the safe one.
Most people trade time for money and think that’s enough. But no one ever got rich off hourly wages alone. If you’re not building something you own, you’re always starting from zero.
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Listening to Fake Experts and Influencers
“There are a ton of phonies out there… I can usually tell within 15 minutes,” Musk once said. He doesn’t waste time on fake gurus or motivational fluff. He bets on results, not personalities.
Meanwhile, broke people are often the loudest with advice, usually bad. Taking cues from unqualified voices is a fast track to staying stuck. If you wouldn’t trade places with someone financially, stop copying them.
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Ignoring the Power of Focus
Trying to chase ten things at once is how most people stay busy but broke. He focuses hard, sometimes to a fault. “I don’t create companies for the sake of creating companies, but to get things done.”
Every dollar, hour, and decision has a target. If your goals are vague, don’t expect your money to do much either.
Failing to Reinvest in Your Own Growth
Musk reinvested nearly every dollar he made into himself or his ventures. He reads, learns, experiments, and iterates. Growth isn’t a goal, it’s a habit.
Poor people often spend windfalls. Rich people treat them like seed money. If you’re not putting money into something that builds skills, knowledge, or leverage, it’s being wasted.
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Hoping for Luck Instead of Building Leverage
Elon doesn’t believe in luck. He believes in force multipliers, equity, innovation, and relentless action. As he put it, “I guess I’ve always wanted to push my chips back on the table. I’m not good at sitting back.”
Waiting for the stars to align is a losing bet. Stack the odds in your favor by building systems, not superstitions. Luck rewards the bold, and the prepared.
Avoiding Negative Feedback
Few people want to hear they’re wrong, so they don’t grow. He once said, “Pay attention to negative feedback… Hardly anyone does that, and it’s incredibly helpful.” That mindset is why his companies improve faster than most.
If your ego’s too fragile for critique, your wallet’s going to stay fragile too. Feedback is a shortcut, not an insult.
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Expecting Others to Fix Your Finances
“I could either watch it happen or be a part of it,” Musk once said. That’s the difference. Most people wait for governments, bosses, or fate to solve their problems. Musk builds his own answers.
Your money, your outcome. No one is coming to rescue your retirement or raise your income. Own the responsibility, and the rewards that follow.
Elon Musk’s Money Lessons That Actually Work
Elon’s not subtle, and his money mindset isn’t complicated. He bets on ownership, takes action fast, and doesn’t wait for someone to hand him the next move.
Most people stay stuck because they think safe equals smart, but safe usually means slow. If you want different results, start thinking like someone who’s already made it.
Break the habits that keep you broke, and don’t look back.
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