On The Dex

Cracking the wealth code: What can we learn from Australia’s top 1%?

Written by Shivani Gopal | Jun 2, 2023 1:20:37 AM

In recent weeks, discussions on Australia's income and wealth distribution have captivated our attention, particularly the astonishing fortunes of the top 1%. At Elladex, we believe that true gender equality can only be achieved when women are financially equal with men. So, what can we learn from Australia's financial elite? While not everyone may reach the 1% Club, there are strategies we can adopt to attain higher levels of financial prosperity and security. By doing so, we can gain economic independence, promote gender equality, and foster a more inclusive and progressive society for future generations.



What does it take to be in the 1% Club?

Let’s begin by examining what qualifies someone to be a part of the financially elite 1% club in Australia? Two different measures with two different thresholds. To be considered in Australia’s highest percentage of wealth holders, according to data from the latest Knight Frank Wealth Report, you must have a total net wealth of $8.26 million. Whilst the ATO reports that you’ll need to be earning more than $253,066 per annum to be in the top 1% of income earners.

While these statistics are intriguing and may serve as tangible benchmarks for those with ambitious aspirations, it is widely recognised that attaining such a level of financial success carries substantial benefits. Beyond providing financial security, independence, a comfortable lifestyle and access to quality goods and services, it also bestows increased influence and power. Connecting individuals to invaluable networks, resources, and opportunities, it empowers them to shape decisions, champion causes they deeply care about, and contribute to the betterment of our society across social, economic, and political realms. In light of this, what valuable insights can we glean from this accomplished cohort regarding education, career choices, and activities that lead to the creation of meaningful wealth and income?


Be mindful of your education and career choices

Conscious decision-making regarding education and career paths is crucial for financial success. Advanced degrees and specialised knowledge are common among the elite, enabling them to command higher salaries and pursue lucrative careers. Prioritising education and continuous learning allows you to position yourself for financial success, accessing higher-paying jobs and unlocking greater earning potential. Strategic career choices in high-earning industries, entrepreneurship, and business ownership also offer avenues for substantial wealth creation and impact. 

Here’s five ways you can enhance your skills, education and position yourself well for career advancement: 


  1. Embrace Lifelong Learning:
    Commit to continuous learning by actively seeking out educational opportunities throughout your career. Attend workshops, seminars, and webinars related to your field. Consider pursuing advanced degrees, certifications, or specialised courses that enhance your knowledge and skills, making you more valuable in the job market and opening doors to higher-paying positions.
  2. Build a Professional Network:
    Cultivate relationships with professionals in your industry through networking events, professional organisations, and online platforms. Engage in mentorship programs to gain valuable insights from experienced individuals who can guide and support your educational and career pursuits. Networking provides access to opportunities, knowledge sharing, and potential career advancements.
  3. Negotiate for Fair Compensation:
    Develop negotiation skills and advocate for fair compensation when entering new job roles or seeking salary advancements. Research industry standards and the market value of your skills to ensure you are appropriately compensated for your qualifications and experience. Confidence in salary negotiations can significantly enhance your earning potential.
  4. Seek Leadership and Promotional Opportunities:
    Actively pursue leadership roles and seek opportunities for career progression. Display initiative, take on challenging projects, and demonstrate your capabilities to showcase your potential. Actively communicate your career goals to your superiors and express your interest in promotions or expanded responsibilities. Leadership positions often come with increased earning potential and greater influence within organisations.
  5. Cultivate an Entrepreneurial Mindset:
    Develop an entrepreneurial mindset by embracing creativity, innovation, and a willingness to take calculated risks. Identify gaps or opportunities in the market and explore the feasibility of starting your own business or launching a side venture. Seek mentorship or join entrepreneurship programs that provide guidance, resources, and support. Developing your entrepreneurial skills can lead to business ownership, which offers potential for significant income growth and the freedom to shape your own career path.

Wealth Creation through Investments

Creating wealth is a fundamental element of achieving financial success. It entails spending less than you earn and investing the surplus to foster wealth growth. It is crucial to debunk the myth that investing is reserved solely for those with high incomes or established wealth. In reality, investing is accessible to individuals from all income levels and backgrounds. Whether it's micro-investing apps or fractional shares, there are investment options available for every budget, enabling anyone to embark on their investment journey. Consistent contributions and disciplined saving habits gradually build a robust investment portfolio over time. Education, patience, and starting early are key factors in this process. Additionally, it's important to challenge the widely held belief that homeownership is the sole path to wealth creation. While owning a home can be valuable, it's essential to recognise that wealth can be built through various avenues beyond real estate. Diversifying investments across shares, bonds, businesses, or commodities can equally lead to long-term wealth creation. Moreover, entrepreneurship and business ownership offer opportunities to generate significant wealth and financial success. By embracing a broader perspective on wealth creation and exploring different investment strategies, you can pave the way for financial prosperity and secure a promising future.


To get started with investing here’s five things you can do:

  1. Set Clear Financial Goals:
    Start by identifying your financial goals and objectives. Determine what you want to achieve through investing, such as saving for retirement, funding education, or buying a house. Setting clear goals will help you stay focused and make informed investment decisions aligned with your objectives.
  2. Educate Yourself:
    Take the time to educate yourself about the basics of investing. Familiarise yourself with different investment options, terminology, and risk factors. Read books, attend seminars, or explore reputable online resources to expand your knowledge and build confidence in making investment choices.
  3. Define Your Risk Tolerance:
    Assess your risk tolerance, which refers to your comfort level with taking on investment risks. Consider your financial situation, time horizon, and personal preferences. Understanding your risk tolerance will guide you in selecting investments that match your comfort level and help create a well-balanced portfolio.
  4. Start with a Diversified Portfolio:
    Begin by building a diversified investment portfolio. Diversification involves spreading your investments across different asset classes (shares, bonds, etc.) and sectors. This helps mitigate risk and increase the potential for stable returns. Consider low-cost index funds or exchange-traded funds (ETFs) as a convenient way to achieve instant diversification.
  5. Start Small and Be Consistent:
    Start investing with an amount that you are comfortable with, even if it's a small sum. The key is to be consistent and contribute regularly, regardless of market conditions. This strategy of dollar-cost averaging allows you to buy more shares when prices are lower and fewer shares when prices are higher, potentially averaging out your costs over time.

Cracking the wealth code together

Cracking the wealth code is not only about financial prosperity; it is a pathway to empowerment, growth, and positive societal change. By embracing education, making strategic career choices, and investing wisely, you can achieve economic independence, challenge gender norms, and contribute to a more inclusive world. Keep in mind that personal success extends beyond financial measures. It’s important that you define success on your own terms, and embark on a journey that aligns with your values and aspirations. Together, we can empower more women and create a brighter future for all.