Richard Branson's 5am surfing ritual, and other daily habits of billionaires

Richard Branson's 5am surfing ritual, and other daily habits of billionaires

Have you ever wondered what a billionaire does every day? We’ve rounded up five habits of wealthy and successful people that you can adapt into your daily routine.

Wake up early like Richard Branson

On top of being the Founder of Virgin Group, Sir Richard Branson makes time to surf, kite, swim or play tennis every single morning by waking up at 5am. The entrepreneur claims that waking up early enables extra hours of productivity in his life.

“No matter where I am in the world, I try to routinely wake up at around 5am. By rising early, I’m able to do some exercise and spend time with my family, which puts me in a great mind frame before getting down to business.” – Richard Branson 

Meditate like Oprah Winfrey 

The benefits of meditation have long been known, including reducing stress, improving concentration and increasing happiness. Media proprietor and talk show host Oprah Winfrey, has spoken extensively about the benefits of sitting in stillness for 20 minutes twice a day in positively impacting her life. 

“The outside world is constantly trying to convince you you’re not enough. But you don’t have to take the bait. Meditation helps you resist.” – Oprah Winfrey 

Read like Mark Zuckerberg 

In 2015, Facebook founder Mark Zuckerberg wrote about his new year’s resolution to read a book every two weeks. By taking time to read from books every day (unfortunately this online article doesn’t count), you can help to reduce stress and your risk of Alzheimer’s and Dementia, as well as increase your focus, concentration, knowledge of the world around you and improve your vocabulary.

“Books allow you to fully explore a topic and immerse yourself in a deeper way than most media today. I’m looking forward to shifting more of my media diet towards reading books.” – Mark Zuckerberg 

Exercise like Mark Cuban

Not only does adding at least 30 minutes of exercise a day improve your physical health, it has long been linked to improved mental health. Mark Cuban has made exercise a key component of his daily life. The American investor and television personality likens his dedication to exercise to his dedication to business

“That I will find a way to get [a workout] done, I think, reflects how relentless I can be in the business world as well.” – Mark Cuban

Live below your means like Warren Buffett 

It’s one of the simplest money saving concepts out there, so you’re probably wondering why a billionaire should have to live below their means too?  

Legendary investor Warren Buffett is a man of simple tastes, and is notably down to earth. He still earns the same base salary of $100,000 a year at Berkshire Hathaway, still lives in the same $31,500 family home and never spends more than $3.17 USD on breakfast. By maintaining the daily habit of not overspending he’s been able to live a more fulfilled life. 

“My life couldn’t be happier. In fact, it’d be worse if I had six or eight houses. So, I have everything I need to have, and I don’t need any more.” – Warren Buffett

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Learn more about savings accounts

Can you set up direct debits from a savings account?

It’s not usually possible to set up a direct debit from your savings account to cover ongoing expenses or bills, as savings accounts are structured around growing your wealth by earning interest on regular deposits, and discouraging withdrawals.

Some transaction accounts allow you to set up direct debits and also earn interest, though you may not enjoy as much flexibility as a dedicated transaction account, or get as high an interest rate as a dedicated savings account.

How do I open a savings account?

Opening a savings account is a relatively simple process. If you’ve found an account with a suitable interest rate, you’ll just need to get in contact with your chosen lender via a branch, phone call or hop online to begin the process. 

You may be required to provide:

  • Personal details, including identification (driver’s license, passport etc.)
  • Tax file number
  • Employment details

How much money should I have in my savings account?

A good rule of thumb when working out a minimum balance for your savings account is to make sure that you’ll earn more in annual interest on your savings than what you’ll be charged in annual fees.

If you’re saving with a specific goal in mind, prepare a budget so the interest you earn on your deposits will help you efficiently reach this goal. Online financial calculators may be helpful here.

How to open a savings account for my child?

Some banks and financial institutions allow parents to open a bank account for their child as soon as it is born, and start depositing funds to go towards the child’s future.

Children’s savings accounts generally don’t have fees, and are structured to help develop positive financial habits by limiting withdrawals, encouraging regular deposits, and earning interest on the savings, similarly to standard savings accounts.

Who has the highest interest rates for savings accounts?

As banks frequently change their rates, the most accurate way to know who currently has the highest interest rate is to use a savings account comparison tool.

How does interest work on savings accounts?

The type of interest savings accounts accrues is called compound interest. Compound interest is interest paid on the initial deposit amount, as well as the accumulated interest on money you have. This is different from simple interest where interest is paid at the end of a specified term. Compound interest allows you to earn interest on interest at a higher frequency. 

Example: John deposits $10,000 into a savings account with an interest rate of 5 per cent that he leaves untouched for 10 years. At the end of the first year he will have $10,512 in savings. After ten years, he will have saved $16,470.

What is the interest rate on savings accounts?

As banks frequently change their rates, the most accurate way to look at interest rates on savings accounts is to use a savings accounts comparison tool. When you look at the savings rate check what the maximum and minimum rates are. Often banks will offer you a promotional rate for the first few months which is competitive, but then revert back to a base rate which can sometimes be less than inflation. Ongoing bonus rates are often a safer bet as they will keep rewarding you with the maximum rate, provided you meet their criteria

What is a savings account?

A savings account is a type of bank account in which you earn interest on the money you deposit. This makes it one of the easiest and safest investment tools.

Can I overdraft my savings account?

A lot of savings accounts won’t let you overdraw. Some will allow this feature but you’ll need to apply first. It’s best to read the fine print and check with your lender whether this is a feature they offer. It can be a helpful addition, but as your lender can charge you a fee as well as interest for going into negative numbers, it’s best to avoid overdrafting when possible.

Can you direct deposit to a savings account?

Yes. You can make one off payments or set up regular direct deposits into a savings account. This can be organised easily through online banking or by making deposits in a branch. Talk to your lender to find out the easiest way for you to set up direct deposits.

Can you have a joint savings account?

Yes. Joint savings accounts can be useful for two or more people wanting to combine their savings to meet shared financial goals, including spouses, flatmates and business partners.

Some joint savings accounts require all parties to sign before they can access the money. While less convenient, this extra security can help encourage all parties to meet their shared financial goals.

Other joint savings accounts allow any of the account holders to access the money. These accounts can be convenient for financially responsible couples that trust one another implicitly. 

What is a good interest rate for a savings account?

A good rule of thumb to keep in mind with savings accounts is to look for a rate that is higher than the CPI inflation rate. This number is constantly changing, so check the Reserve Bank of Australia’s page. If you aren’t earning interest above this then the value of your money will go backwards over time.

How to make money with a savings account?

Savings accounts make you money by earning interest on your savings. The more money you deposit, the longer you leave it in the account, and the higher the account’s interest rate, the more interest you’ll be paid by the bank or financial institution, and the more your wealth will grow.

To make sure your savings account makes money and doesn’t lose money, it’s important to maintain a large enough minimum balance that the annual interest earned exceeds any annual fees charged on the account.

Can you set up a savings account online?

Yes. Several large and small banks offer online applications for savings accounts, and there are also online-only financial institutions to consider.

Online-only savings accounts are often less expensive than other savings accounts, though they may not offer the same flexibility, features, or face-to-face service as more traditional savings accounts.