Build wealth the slow and sensible way with these seven strategies

Getting rich quickly is almost impossible, but there are some tried and tested tactics to help people become wealthy gradually.

If given the opportunity, most people would love to get rich quick.

But unless you win a lottery, make a highly-speculative lottery-like investment or suddenly inherit a mountain of money, your chances are incredibly slim.

Yet piles of people around the world are wealthy, with an estimated 56 million millionaires and more than 2750 billionaires.

Most Australians’ idea of rich would fit somewhere between $1 million and $1 billion of assets, and the secret to financial success for most has been getting rich slowly rather than receiving quick cash.

Whether your measure of wealthy, here are seven strategies to get there in a slow and sensible way.

1. BECOME AN INVESTOR

Owning assets that grow long-term and pay an income is the simplest way to get rich. A wise adviser once told me there are just three main asset types – real estate, cash and businesses, and everything else is derived from that.

Anyone can become an investor no matter their current income, because micro investment apps and funds allow people to start buying assets with only a few dollars. Begin ASAP to allow compound interest to work its magic.

2. BUY PROPERTY

This is my favourite investment, and that of millions of Aussies. Owning property delivers the security of a stable home, tax-free capital gains and good price growth over decades.

Investing for both growth and a passive income are key ways to become wealthy.

The recent boom pushed prices beyond the financial means of many would-be buyers, but there are ways to squeeze a foot in the door. Consider buying in affordable areas, teaming up with family or friends, and buying bits of residential or commercial property through real estate investment trusts or fractional investment.

3. USE YOUR EQUITY

The other great reason why property wins is because it is easy to borrow against its equity to buy more properties or other investments. Interest rates on mortgages are usually the lowest you will find. For many real estate investors, rent received and other tax deductions can cover the costs of owning the asset.

4. BUY BUSINESSES

My biggest wealth regret has been not buying a business many years ago, and using other people’s effort – employees – as well as my own to grow it. Most mega-rich people began their journey with a business idea, and most failed several times before striking success.

Being a sole trader limits your income to what you can physically produced. When you hire others, the income is limitless. Alternatively, buy into other people’s businesses through shares.

5. DIVERSIFY

A golden rule of getting rich is to spread money across different asset classes in different sectors and countries. There are too many sad stories of shooting star businesspeople and investors (crypto, anyone?) who put all their eggs in one basket and then the basket fell off a cliff.

6. SEEK PASSIVE INCOME

True wealth comes from earning a comfortable income without working for it, so you’re free to do whatever you choose without financial stress.

This comes from building up a suite of income-producing investments – share portfolios, positively-geared rental properties and other assets that pay regular returns. Getting there will take time.

7. DRAW A MAP

Turn your dreams into measurable goals by writing them down, and monitoring your progress. Create spreadsheets, check online calculators, and seek professional advice if needed.

Without a map and a destination, it’s hard to know how to get to where you want to go.