This month marks my 13th year in financial planning, and over the years, I’ve learned a lot about what it takes to build wealth. As we head into 2024, I want to share 13 secrets that can help you on your journey to getting rich. These insights aren’t about quick fixes or overnight success—they’re about the fundamental principles that have stood the test of time.
1. No One Gets Rich Overnight
The idea of getting rich quickly is a myth. True wealth is built over time through consistent effort, smart investments, and patience. If you’re looking for instant riches, you’re setting yourself up for disappointment. Focus instead on long-term growth and sustainable strategies.
2. No One Gets Rich from Just Saving
While saving is important, it’s not enough on its own to make you rich. Saving money is just one part of the equation. To truly build wealth, you need to invest your savings wisely, allowing them to grow through compound interest and smart investment choices.
3. No One Gets Rich by Doing It All Themselves
Wealth-building is a team effort. Surround yourself with experts who can guide you—financial advisors, accountants, mentors, and even peers who share similar goals. Trying to do everything on your own is not only exhausting but also limits your potential for success.
4. No One Gets Rich with a “Loss Avoidance” Mentality
Playing it safe might protect you from losses, but it also limits your growth. Wealth-building requires taking calculated risks. This doesn’t mean being reckless, but it does mean being willing to invest in opportunities that have the potential for higher returns.
5. No One Gets Rich from Just Being a PAYG Employee
Relying solely on your salary is unlikely to make you rich. While a stable income is important, wealth-building often involves entrepreneurship, investing, or side hustles that can generate additional income streams.
6. No One Gets Rich Having Only One Source of Income
Diversification is key to building wealth. Relying on a single source of income is risky—if that income stream dries up, so does your financial stability. Consider multiple streams of income, whether it’s through investments, rental properties, or other side businesses.
7. No One Gets Rich When They Are Physically Unhealthy
Your health is your greatest asset. Without it, you won’t have the energy, focus, or longevity needed to build and enjoy your wealth. Invest in your health just as you would in your financial portfolio—it pays off in the long run.
8. No One Gets Rich Without a Continuous Desire to Learn
The world of finance is always changing. To stay ahead, you need to be a lifelong learner. Whether it’s reading books, attending seminars, or learning from mentors, the more knowledge you have, the better equipped you are to make smart financial decisions.
9. No One Gets Rich Through Divorce (Except the Lawyers)
Divorce can be financially devastating, often leading to a significant loss of assets and income. While sometimes unavoidable, it’s a reminder of the importance of choosing the right partner and investing in your relationships as much as your financial portfolio.
10. No One Gets Rich Without Focusing on Tax Minimisation
Understanding and optimizing your tax situation is crucial to wealth-building. Paying more tax than necessary can significantly erode your wealth. Work with a knowledgeable accountant or financial advisor to ensure you’re taking full advantage of legal tax minimisation strategies.
11. No One Gets Rich Through One Sole Investment Strategy
Diversification isn’t just about having multiple income streams—it’s also about spreading your investments across different assets. Don’t put all your eggs in one basket. Whether it’s shares, property, or other investments, diversifying reduces risk and increases the potential for returns.
12. No One Gets Rich Through Cancelling Their Netflix and Spotify Subscriptions
While cutting back on small expenses can help you save money, it’s not going to make you rich. True wealth-building comes from making significant financial decisions, like investing, building income streams, and optimizing your tax situation. Focus on the big picture, not just the small sacrifices.
13. No One Gets Rich Without Knowing How to Use Leverage (Both Investments and Time)
Leverage is a powerful tool in wealth-building, whether it’s leveraging your time by outsourcing tasks or leveraging your investments to amplify returns. Understanding how to use leverage effectively can accelerate your path to wealth, but it must be done wisely to avoid unnecessary risks.
BONUS: No One STAYS Rich Without a Comprehensive Plan B
Building wealth is one thing; keeping it is another. Life is unpredictable, and having a solid Plan B—whether it’s insurance, an emergency fund, or a backup business strategy—is essential for protecting your wealth in the long term.
