What if you could unearth the same strategies that Australia's millionaires use to build their empires?

According to the Finder Wealth Building Report 2024, there were 2.8 million Australian millionaires at the end of last year, over 10% of the population.

And while you might think about dazzling stories of fast riches, gold bonanzas, and lavish lifestyles, as it turns out, most wealthy Aussies got there in pretty boring fashion over a long horizon.

So, while there's no 'magic' formula, the strategies followed by ASX millionaires are tried and tested and tailored for long-term success.

Here are the four essential habits of some of Australia's millionaires.

Secret #1: Think long-term and invest regularly

ASX millionaires know the power of long-term investing. The first secret is about building resilience and letting time do its magic.

Neither Rome nor someone's wealth was ever built in a day. It was built through patience and consistency.

Instead of chasing short-term wins or following the latest trend, top earners focus on developing a portfolio over a long time period.

"In fact", the Finder survey says, "12% of investors say regular investing has been their biggest wealth contributor".

This was behind "careful budgeting and expense reduction". It adds:

Many Australian investors agree: frequent investing and consistent contributions have significantly boosted their wealth.

So, while shares in the major stock indexes, such as the S&P/ASX 200 Index (ASX: XJO), can fluctuate, millionaires understand that it's the steady, compounding returns over time that deliver real value.

Offering sage advice, Finder adds that it is "better to invest $5 a week now rather than saving up $250…as your return on investment (ROI) will be stronger."

Secret #2: Own assets and be frugal

One of the sharpest moves ASX millionaires make is to target assets that appreciate in value rather than buying material 'things' that eventually become worthless.

But they also back this up by keeping a lid on their expenses – both household and personal expenses.

Think about it: some of the most successful Australian millionaires weren't out there splurging on the latest designer clothes or making down payments on exotic cars in their heyday.

Instead, they looked to decisions that improved their wealth, not detract from it.

The majority of Australia's investors have a frugal habit that supports their investing behaviours. An impressive 84% of investors have at least one frugal habit, compared to just 75% of non-investors.

Some of the tight-zipped approaches investors mentioned in the Finder survey were buying cheaper groceries, switching household bills regularly, and chowing down at home versus Uber eats.

This explains why they can allocate almost a quarter of their income towards investments and savings.

Secret #3: Risk management

Wealthy investors on the ASX understand there is no more important investment tenet than risk management.

As Warren Buffett clearly defines in his 2 rules of investing: "Rule number 1: Don't lose money. Rule number 2. Don't forget rule number 1".

Risk is kind of a double-edged sword in investing. One the one hand, the very essence of investing means taking on risk.

That said, not investing is also a risk – a risk to one's wealth. That's because inflation reduces the purchasing power of money over time.

But, judging from the historical record, those willing to take marginal risk, such as holding low-cost exchange-traded funds (ETFs) that track a broad index, have outpaced inflation over time.

That also means avoiding speculation and situations where there are too many "unknown unknowns".

This is essential because losses resulting from speculation or emotional-based investing can impact long-term investment results and your opportunity to become a millionaire.

Secret #4: Avoiding common mistakes

Another key habit ASX millionaires have is avoiding the common pitfalls most investors make during volatile markets.

When markets become choppy like the open seas, most investors tend to run for the hills, selling into the falling market.

This "ensures that you lock in your losses", according to Morgan Stanley.

Morgan Stanley also notes most investors "overestimate their ability to judge when a stock is a great deal at a certain price."

Overconfident investors tend to think they know better than even professional investors what's going on in markets and can make all the right moves to avoid losses and lock in bargains.

They can drive themselves to distraction and end up with a portfolio in disarray and even deeper losses. Profiting from short-term trading is a lot more difficult in practice than it seems.

Sometimes, your best decisions aren't the ones you make but the ones you don't make.

Takeaway: Time to start thinking like an ASX millionaire

ASX millionaires didn't get to their status overnight. But if you can think long-term, embrace smart risk management, and avoid the common mistakes investors make, then the experts agree that you're on the right track.

Thinking long-term remains the overarching tenet. Successful investing takes time. Ask any millionaire, and he or she will tell you the same.

That said, don't give up. Every single day, and dollar, counts.