12 Key Strategies to Multiply Your Wealth Like the Rich Do

Do you ever wonder how wealthy people keep getting richer while most of us struggle just to save a little each month? I’ve been studying wealth-building strategies for years, and I’ve discovered that multiplying wealth isn’t just about earning a big salary—it’s about making your money work harder for you

The good news? You don’t need to be born into money to build serious wealth. In this article, I’ll share 12 powerful strategies that the wealthy use to multiply their assets—and how you can apply these same principles regardless of your current financial situation.

1. Diversify Your Portfolio Strategically

One thing I’ve noticed about wealthy people is they never keep all their money in one place. Diversification isn’t just about reducing risk—it’s about creating multiple opportunities for your money to grow simultaneously.

Here’s where the rich typically invest

• Individual retirement accounts (IRAs), especially employer-matched ones
• Real estate investments
• Low-cost index funds
• Stocks and bonds
• High-yield savings products

Robert R. Johnson, PhD, CFA and professor at Heider College of Business at Creighton University, suggests that for most investors, “diversifying across two asset classes (stocks and bonds) is enough diversification. People should invest in a low-fee, diversified equity index fund and continue to invest consistently whether the market is up, down, or sideways.”

This approach creates a stable foundation while still allowing for growth—exactly what you need when trying to multiply wealth over time.

2. Focus on Exponential Returns Through Compound Interest

“Financial mistakes begin early in life and the biggest financial mistake people make is taking too little risk, not too much risk,” notes Johnson. “Unfortunately, many people allocate retirement savings to money market accounts or bonds.”

Letting your money sit in a checking account earning 0.01% interest is basically losing money to inflation. Instead, you want to harness the power of compound interest—earning interest on your interest.

Some excellent vehicles for compound growth include:

• High-yield savings accounts
• Certificates of deposit (CDs)
• Money market accounts
• Dividend stocks
• ETFs
• REITs
• Mutual funds

Over time, compound interest can turn even modest investments into substantial wealth. This is how $10,000 invested today at 8% annual returns becomes over $100,000 in 30 years without you adding another penny!

3. Be Strategic With Your Tax Planning

We’ve all heard the saying that the two things you cannot avoid are “taxes and death,” but the wealthy know there’s wiggle room with taxes.

Rich people rarely overpay on taxes. They work with tax experts to:

• Find available deductions
• Utilize tax incentives
• Strategically organize investments
• Time their income and capital gains

It might seem expensive to hire a tax professional, but trust me, a good one will save you far more than they cost. Last year, I paid my tax advisor $750, but she found nearly $4,000 in deductions I would have missed on my own!

4. Create Opportunities for Exclusive Investments

The wealthy often have access to investment opportunities that most people don’t even know exist. By becoming an accredited investor, you can unlock doors to potentially higher-return investments.

These exclusive investment opportunities include:

• Premarket IPOs
• New startups
• High-yield ventures
• Private equity deals

While these investments typically carry higher risk, they also offer the potential for much higher returns than conventional options available to the general public.

5. Pay Yourself First—Every Single Time

This strategy is simple but powerful: treat yourself as your most important bill.

Set up automatic transfers so that 10-20% of each paycheck goes straight into your investment accounts before you have a chance to spend it. This “set it and forget it” approach ensures you’re consistently building wealth even when life gets busy.

For example, if you make $5,000 monthly and automatically invest 20% ($1,000), you’ll add $12,000 to your investment portfolio annually without having to think about it. That’s powerful!

6. Adjust Your Risk Tolerance As You Grow

A basic high-yield CD isn’t necessarily bad, but there’s only so much your money can grow this way. Sometimes, you need to take calculated risks to accelerate wealth building.

Johnson points out, “Someone with a long time horizon should not have exposure to money market instruments, yet many investors do because they fear the volatility of the stock market.”

Your mindset plays a major role in how much wealth you can accumulate. Being comfortable with some volatility and occasional failures will ultimately lead to greater long-term success. I remember losing $2,000 on my first stock pick—it hurt, but the lessons I learned helped me make $15,000 on later investments!

7. Build With Generational Wealth in Mind

Whether or not you inherited money, thinking about building generational wealth puts you in a long-term mindset that naturally leads to better financial decisions.

When you’re focused on creating wealth that will benefit your children, grandchildren, and beyond, you become more strategic about:

• Building sustainable investment strategies
• Creating lasting income-producing assets
• Avoiding short-term thinking and impulse purchases
• Establishing trusts and other wealth-preservation vehicles

This long-term perspective helps you resist the temptation to cash out investments prematurely or spend lavishly on depreciating assets.

8. Never Pass on Passive Income Opportunities

Even if you make a good living from your job, the super-rich know that truly multiplying wealth requires earning money while you sleep.

“The wealthy know how to set up multiple streams of passive income, whether through dividend-paying stocks, rental properties, or other investments,” says Mason Jones, a passive income expert.

Some effective passive income streams include:

• Buying rental properties
• Investing in businesses as a silent partner
• Selling intellectual property to gain royalties
• Creating digital products that sell automatically

Jones noted that “the key to building wealth is letting your money work for you across different streams, so you’re not just relying on one source or constantly hustling to keep things afloat.”

9. Use Leverage Wisely

Leverage—using borrowed capital to increase your investment potential—can dramatically accelerate wealth building when used correctly.

The wealthy often use other people’s money to amplify their returns. For example, instead of buying one $300,000 rental property with cash, they might use that same $300,000 as down payments on three properties, increasing their potential rental income and appreciation.

However, Johnson adds an important warning: “If you try and magnify your returns by using leverage, you may not have the financial wherewithal to withstand the interim volatility before the wisdom of your decisions pan out.”

In other words, leverage can multiply your gains—but it can also multiply your losses if things go south. Use it wisely!

10. Build and Leverage Your Network

Everything in life, including multiplying money, is easier with help from others. The wealthy deliberately surround themselves with other financially successful people who can:

• Share investment opportunities
• Provide mentorship
• Offer inside information on market trends
• Become potential business partners

I’ve personally found that joining investment clubs and attending financial seminars has connected me with people who’ve shared opportunities I’d never have found on my own. Last year, a connection from my network tipped me off about a small real estate development that’s already returned 22% on my investment!

11. Live Below Your Means (Even As Your Means Grow)

“The most common mistake people make that prevent them from becoming rich is letting their spending increase commensurate with their new salary,” says Johnson. “For instance, people move into a bigger apartment or buy a more expensive car or home to reward themselves for receiving the raise. What happens is they’re unable to improve their financial condition because they spend everything they make.”

This is perhaps the most counterintuitive wealth-building strategy: as your income increases, resist the urge to upgrade your lifestyle proportionally. Instead:

• Continue living as if you hadn’t received that raise
• Invest the difference
• Allow compound interest to work its magic on larger amounts

Johnson elaborated, “People are wise to effectively invest any money from a raise as if you didn’t receive the raise. That is, continue to live the same lifestyle you led before receiving a raise and invest the difference.”

12. Continuously Improve Your Financial Education

The wealthy never stop learning about money, markets, and investment strategies. They:

• Read financial books and newsletters
• Take courses on investing
• Study market trends
• Learn tax optimization strategies
• Stay updated on economic developments

Investing in your financial education pays incredible dividends over time. For every hour I’ve spent learning about finance, I’ve earned back hundreds (sometimes thousands) in better investment returns and tax savings.

Final Thoughts: Mind Over Money

The bottom line? There isn’t just one way the rich multiply their wealth—they use multiple strategies simultaneously. You can start with just one or two approaches that best fit your current situation and gradually implement more as your knowledge and comfort grow.

Whether it’s taking advantage of compound interest, developing passive income streams, or learning to leverage your investments wisely, the key is to develop a wealth mindset that focuses on long-term growth rather than short-term comfort.

Remember, most millionaires weren’t born wealthy—they simply applied these principles consistently over time. With patience, discipline, and the right strategies, you too can multiply your wealth beyond what you might currently believe possible.

Have you tried any of these wealth-building strategies? Which one seems most approachable for your current situation? I’d love to hear about your experiences in the comments!

The 70/20/10 rule is a popular budgeting method that allocates your after-tax income into three categories: 70% for needs, 20% for savings and debt repayment, and 10% for wants. This system helps create a balance between covering essential expenses, planning for the future, and enjoying your money.