There are several strategies commonly used by Australians to build their wealth.

Some people have a clever idea for a business, see an opening in the market that isn’t being satisfied, or are just very passionate about their work. They take on the risk of failure and start a business. Through hard work over many years, they become wealthy.

Some people buy a residential or commercial investment property. Properties usually grow in value, though it isn’t guaranteed. A large loan is usually required. To become wealthy this process must be repeated several times with further borrowings.

Wealth can also be achieved by buying farms, starting with a small hobby farm and buying a larger one in time.

Borrowing to invest in good quality shares and managed funds can also build wealth. Debt can be gradually paid down, then increased again to invest more. Loan interest is tax-deductible.

Superannuation is one of the easier options for building wealth. It is more tax-sheltered than many other investments available. It’s also lower risk than starting a business or other options mentioned, as no borrowing is involved.

The drawback with super is its inaccessibility and lack of any income payments until at least age sixty. Yet if people take a long-term view and look past that, it is a very effective way to build wealth.

Super accumulation accounts are taxed only fifteen per cent on income and ten per cent on realised capital gains. That’s less than all marginal tax rates, and much lower than the rates most people with higher incomes pay. Non-super savings plans are taxed at personal marginal rates.

Superannuation also offers tax deductions for extra voluntary contributions up to specific limits. It pays to become interested in super at a younger age. Learn the rules and contribution limits. Learn about the investment options available and take an interest in choosing them.

Start some salary sacrifice or deducible personal contributions early and they will compound and make a big difference long term.

Once in retirement mode, super is entirely tax free. If people live a long life that’s decades to grow untaxed. Government policy assumes retirees will spend their super balances during their retirement, but many don’t want to do that.

If they draw the minimum income, at a rate less than earnings, the balance will grow initially, and never run out. That can provide capital for children and grandchildren, enabling them to buy homes and start businesses.

There are several common ways to build wealth. Choosing one and applying focus and discipline will achieve remarkable results.