By Michael Yardney July 25, 2026

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7 ways the rich are getting richer, and how to join them

Michael Yardney's Commentary
7 ways the rich are getting richer, and how to join them

Key takeaways

Wealth usually grows through patient compounding rather than one spectacular investment.

Successful investors use productive debt carefully to control a larger asset base.

Financially successful people build a team of experienced advisers rather than trying to make every decision alone.

Property can be a powerful wealth-building vehicle, although the quality of the asset and the strategy behind it matter enormously.

Financial fluency helps investors recognise opportunities, manage risk and avoid costly advice.

Genuine wealth creation requires a long-term perspective, discipline and persistence.

The people you spend time with can influence your standards, thinking and financial behaviour.

We often hear that the rich keep getting richer, and there is plenty of evidence to support that observation.

From the outside, it can appear that wealthy people were born lucky, had access to opportunities unavailable to everyone else or knew some financial secret the rest of us somehow missed.

Of course, family wealth and good fortune can provide a considerable head start, but many financially successful Australians have built their position over decades.

They invest in the same broad asset classes available to everyone else, including property, shares and businesses. The difference usually lies in how they think, how consistently they act and how long they allow their strategy to work.

Here are seven principles that help explain why the wealthy tend to become wealthier and how you can apply the same lessons to your own financial journey.

1. They understand the power of compounding

You don’t see too many genuinely wealthy young people unless they have inherited money, built a highly successful business or enjoyed an exceptional financial outcome.

That is because building a substantial asset base usually takes time.

Wealthy people understand that compounding becomes increasingly powerful as both the value of their assets and the length of their investment period increase.

For example, an asset worth $500,000 growing at an average of 10 per cent a year would be worth approximately $1.3 million after 10 years. An asset worth $1 million growing at the same rate would be worth around $2.6 million.

Of course, investment returns rarely arrive in a smooth, predictable line, and no sensible investor should assume an annual return of 10 per cent. The example simply demonstrates how a larger asset base can produce increasingly substantial gains over time.

This is one reason property has helped so many Australians build wealth. They have been able to control a relatively valuable asset, hold it through several property cycles and allow compounding to do much of the heavy lifting.

The early years can feel slow, but as the asset base grows, the financial momentum becomes more noticeable.

2. They use leverage intelligently

Leverage involves using borrowed money to purchase an asset with the expectation that its long-term return will exceed the cost of holding the debt.

Wealthy people generally understand the difference between productive debt and personal debt.

Borrowing to fund lifestyle expenses or purchase assets that fall in value can weaken your financial position. Borrowing prudently to acquire a high-quality, income-producing asset can help you build a much larger asset base than you could using your savings alone.

This does not make debt harmless. Interest rates can rise, property values can fall temporarily, tenants can leave, and personal circumstances can change.

Successful investors therefore use leverage within their financial capacity, maintain adequate cash-flow buffers and avoid borrowing to the point where one setback could force them to sell.

Tip: Debt can accelerate wealth creation, but it can also magnify mistakes. The result depends on the quality of the asset, the structure of the loan and the investor’s ability to hold through difficult periods.

3. They pay for professional advice

Few wealthy people make every major financial decision on their own.

They usually surround themselves with experienced accountants, finance strategists, solicitors, property advisers and wealth professionals who understand how the different pieces of their financial life fit together.

They recognise that inexpensive advice can become very expensive when it leads to the wrong property, an unsuitable ownership structure, unnecessary tax or poorly arranged finance.

A strong advisory team can also challenge your assumptions, identify risks you may have overlooked and help prevent emotion from driving major decisions.

At Metropole, our property strategists, wealth advisers, buyers’ agents and property management specialists work together because property decisions should form part of an overall wealth strategy.

Whether you are buying your first investment or already own a substantial portfolio, professional advice should help you make better decisions rather than simply confirm what you already want to hear.

4. They appreciate the wealth-building power of property

Most wealthy Australians have some exposure to property, whether through their home, investment properties, commercial real estate or business premises.

Property can provide rental income, access to leverage, potential tax benefits and long-term capital growth. It is also a tangible asset that many investors find easier to understand than more complex financial products.

However, buying any property does not guarantee wealth.

Australia has thousands of properties that will deliver mediocre growth because they are in the wrong location, appeal to a limited group of buyers or face an oversupply of similar dwellings.

Successful property investors are selective. They look for investment-grade assets in locations where supply is constrained and demand is supported by affluent owner-occupiers whose incomes allow them to pay progressively higher prices.

They also understand that property is generally a long-term investment. Transaction costs are high, markets move in cycles and the strongest results often become apparent only after many years.

5. They develop financial fluency

Wealthy people do not necessarily know every detail of tax, finance or property law, but they usually understand enough to ask intelligent questions and recognise when advice does not make sense.

Financial fluency includes understanding cash flow, compounding, leverage, taxation, ownership structures, risk and the difference between income and wealth.

It also means knowing what you don’t know.

The more financially fluent you become, the more capable you are of assessing opportunities and recognising salespeople who are presenting speculation as investment advice.

Mentors and advisers can shorten your learning curve considerably, but you should still understand the reasoning behind the recommendations you receive.

You don’t need to become an accountant, mortgage broker or property valuer. You need enough knowledge to remain responsible for your financial future.

6. They play the long game

Wealth is usually transferred from impatient people to patient people.

Building substantial wealth requires persistence because no investment performs strongly every year. Property markets slow, interest rates change, governments introduce new rules and economic uncertainty regularly tests investors’ confidence.

Many people respond by chasing the next hotspot, buying speculative assets or continually changing strategy. They mistake activity for progress.

Experienced investors understand that time in the market is generally more valuable than repeatedly trying to time the market.

They purchase quality assets, improve them where appropriate, review their position regularly and give their strategy sufficient time to work.

Some investors also manufacture additional value through renovations or development, but these strategies require careful research and financial discipline. Renovating a poorly located property does not turn it into an investment-grade asset, while overcapitalising can destroy the profit an investor hoped to create.

The goal is to make strategic decisions and then remain patient enough to enjoy the results.

7. They surround themselves with the right people

The people around you influence what you consider normal, achievable and worthwhile.

If you regularly spend time with people who complain about money, avoid responsibility or dismiss anyone who succeeds, those attitudes can gradually affect your thinking.

Financially successful people tend to build relationships with others who are optimistic, disciplined and committed to continued learning.

This does not mean abandoning old friends or only associating with wealthy people. It means being deliberate about whose opinions you allow to shape important decisions.

Successful people also recognise that expertise is specialised. They may be highly capable in their own profession or business, but they maintain relationships with people who possess skills they do not have.

A strong network gives them access to different perspectives, trusted advice and opportunities they may never have discovered on their own.

The bottom line

The rich continue to become richer because they own assets, understand leverage, invest in good advice and allow time and compounding to work in their favour.

These principles are available to ordinary Australians as well, although applying them requires discipline, education and a willingness to delay some immediate pleasures in favour of greater financial choices later.

You do not need to copy another person’s portfolio or take risks beyond your comfort level. You need a clear strategy suited to your income, stage of life, financial capacity and longer-term goals.

About Michael Yardney Michael is the founder of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media.