Unfair advantages of the rich – and how to claw them back

Sometimes it can seem as though other people were born lucky.

Rich parents, inspiring mentors, opportunities handed to them on a platter... it’s hard to believe the average Aussie can compete with this kind of advantage.

But the truth is, most self-made successful people share a number of characteristics that have helped propel them towards wealth.

And the good news is, by copying these strategies, you’ll increase your chances of making it big, too!

Here are some of the habits rich people tend to possess that you can implement in your own life to supercharge your success...

1. They place a high value on education

We are so lucky in Australia to have great public schools and a higher education system that allows you to defer payment until you’ve completed your degree and are earning decent cash – unlike in some other countries, where your parents’ wealth determines your access to quality education.

Take full advantage of the relevant HECS/HELP available for your chosen career path, and rack up some extra letters after your name.

It’s only indexed to inflation, so it’s an investment in your future wealth that doesn’t even incur real interest.

Just be sure to make note of any HECS/HELP debts you have when you start a new job or do your tax return – you don’t want to end up with a tax bill at the end of the financial year.

2. They aren’t afraid to work hard

This applies to everything, from their career right through to health and fitness.

An American study found that when it comes to weight loss, people with lower incomes are more likely to reach for an easy solution, such as diet pills, while those with high-paying jobs tended to reduce their calorie intake, drink more water and exercise – and we all know which of these strategies is likely to be more effective long-term.

Having this quick-fix mentality can be problematic when it comes to business and investment.

It leads you to make risky decisions, which may not pay off, or give up when you don’t see immediate results – neither of which spells success.

If you’re allergic to hard work and intent on instant gratification, you’ll never hit the big time when building your wealth.

Instead, take a lesson from the good old tortoise and his mate the hare – slow and steady wins the race.

3. They keep an eye on their investments

Rich people know that maintaining their wealth takes work.

Rather than dumping your money in a managed fund, handing it over to a financial planner or leaving it to take care of itself, keep abreast of how your investments are performing.

Educate yourself, start reading the finance and property sections of the major papers, magazines or online, and get to grips with your superannuation and insurance.

Knowledge really is power here, and the more you educate yourself, the better equipped you’ll be to sniff out a good opportunity when it arises.

4. They take calculated risks, rather than following the crowd

Astute investors don’t rush to follow the latest trend.

Rather, they sink their hard-earned funds into avenues proven to offer solid, long-term gains.

Again, this goes back to that instant gratification mentality – get-rich-quick schemes simply don’t work, and people who chase them end up losing out big time more often than not.

Investments that grow steadily and sustainably over time might not offer the same immediate buzz, but they’re far more likely to pay off down the track.

So change your mindset and opt for more conservative options, with the occasional calculated risk based on good advice and research.

5. They splash out on key pieces

Knowing when to splurge and when to save is a skill that will serve you well in everything from household renovations to styling your summer wardrobe.

Successful, wealthy people don’t buy the top-of-the-line version in every category – instead, they save the big bucks for the things that really matter and make do with cheaper alternatives of the things that aren’t so important.

For example, when renovating a kitchen, splashing out on high-end bench tops adds a real wow factor, but to save a few dollars you could re-spray cupboard doors and splashback tiles for a fraction of the cost to replace them.

Add some stylish door and drawer handles bought cheaply in bulk, and you’ve got a millionaire’s makeover on a budget.

Spend big on the items that will get you the most bang for your buck, rather than frittering your money away on stuff that won’t add value to your home, wardrobe or life.

In the following graphic James Altucher  gives the following 7 definitions of success and 6 things that can get in the way:

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.