Some people believe that winning the lottery or inheriting money from a family is the only way to become wealthy, but this is not the case. Have you ever wondered how to get rich in Canada?
We’ll go over some tried-and-true methods for increasing your net worth exponentially. Continue reading to find out how you can finally achieve the wealth you’ve always desired!
What Is a Rich Canadian?
Most Canadians are pretty wealthy by global standards. Not only do they have a plethora of assets and a booming economy, but they also have a government welfare system that provides Canadian citizens with a level of living unrivalled in many other areas of the globe.
About 3 million Canadian families have a total net worth of over one million dollars. These families make up 73% of Canada’s total wealth. The main gains in global wealth distribution have increased from 1,436,000 in 2019 to 1,682,000 in 2020 among adults with wealth exceeding $1 million.
With a net wealth threshold of $129.5 million each, or a total of $583 billion, the wealthiest 0.01% of Canadians control 5% of the total net wealth distribution.
How Wealthy Is the Wealthiest Canadian?
According to the most recent figures, David Thomson is on the top of the Canada billionaires list. Thomson is a media mogul and hereditary peer from Canada. His present net worth is more than C$66 billion.
Thomson started his career as a junior associate at McLeod Young Weir in Toronto. He left that firm to work for the Thomson family, where he rose through the ranks of Thomson-managed businesses. Following that, he established Osmington Incorporated, which he owned and operated independently of the Thomson empire, to gain independence.
The Average Income in Canada
According to Canadian wage statistics, the average annual pay of full and part-time employees in 2021 was $1,098.97 per week. This demonstrates a positive trend, highlighting an increase in earnings since 2019 when the same rate was $1,012.28.
Senior management occupations have the highest average weekly wage rate of $2,313.34, while sales support occupations have the lowest at $390.16.
What Is Considered Rich in Canada?
Being rich depends on many factors. But, what net worth is considered rich in Canada? Persons with more than $1 million can be considered wealthy in Canada. According to the stats, 1,681,969 Canadian millionaires in 2020, or 5.6% of the total number of adults with over 1 million.
91,823, or 0.26% of the population, have between $6.5 and $39 million, which is classified as very wealthy. Finally, 10,395 Canadians are extremely rich, with more than $39 million in their possession.
How to Get Rich in Canada?
Most strategies for becoming wealthy take time. This is why there aren’t many young self-made millionaires in Canada.
To give you some ideas, we’ve compiled a list of strategies and jobs that will make you rich and help you become a millionaire faster and better. Continue reading!
1. Turn a Unique Idea Into a Business
- Risk: High
- Time Frame: Three to five years
- Skills Needed: Creativity, sales genius, management skills, networking
Suppose you have an excellent idea for a new business. You may have the ideal product or service, but it will never see the light of day unless you can turn your concept into a profitable business.
You must be able to turn that concept into something people want to buy. That includes having a clear plan for how your company will operate, what products or services you will offer, and how you will market and sell them.
Trying to make money from a unique idea is probably the best but riskiest option. This isn’t the fastest way to become a millionaire, but there’s a good chance if your idea is unique and well-marketed.
2. Save and Invest in Assets
- Risk: Moderate
- Time Frame: Several years
- Skills Needed: Consistency, financial discipline, strategic thinking
Assets are a collection of investments with comparable characteristics that are subject to the same rules and regulations.
For example, rental property is classified as a real estate asset, whereas individual firm shares are classified as an equity investment or asset. Government and even business bonds are classified as income assets. Cryptocurrency is an asset, just like fine art or gold investments.
By holding assets, you spread your risk. Different asset classes grow and decline at different rates. This means that when some investments underperform, others outperform.
One of the most popular ways to become wealthy is to increase your chances of earning a mega net worth by investing in a diverse range of income-producing assets. Remember, if you’re wondering how to become a millionaire with no money, this is not the way for you.
3. Build Multiple Income Streams
- Risk: Low
- Time Frame: Two to four years
- Skills Needed: Discipline, business planning, time managing skills
You may also be wondering how to get rich with a normal job. Unless you’re a highly compensated professional, such as a doctor or lawyer, it’s unlikely that you’ll become wealthy solely through your regular job. It is possible, but you’ll need a bigger time frame.
Aside from investing in stocks and real estate, you can expand your reach by creating multiple revenue streams, such as writing an e-book, selling photographs or designs online, or even renting out your home for a short period.
The goal is to generate more sources of extra income each month. On the plus side, many potential sources of income do not require any investment.
4. Do What Others Don’t Want to Do
- Risk: High
- Time Frame: Depends on the business
- Skills Needed: Adventurous spirit, flexibility, ability to learn quick
Instead of investing your skills into traditional skills, try dedicating your time to unconventional businesses that not many entrepreneurs decide to take on.
Businesses and occupations that are innovative, life-changing, or even employ avant-garde methods may increase your chances of becoming wealthy. Still, this is not the easiest way to get rich because it requires significant effort, investment, and careful planning.
If you’re more of a solo player and possess excellent marketing skills, use them to get to the top of your career field and create your brand.
5. Passive Income
- Risk: Low
- Time Frame: Years to decades
- Skills Needed: Planning, business knowledge, money management
Increasing your passive income is one of the easiest ways to become rich. Passive income does not require as much effort – in other words, there is no equivalent exchange of time for money. There are only so many hours in the day, passive income allows you to earn money from multiple sources simultaneously.
Passive income does not always imply passive behaviour. Art installations, for example, or writing novels or songs, require significant effort, but the benefits will last for years if your book or music sells well.
While passive income can be a great way to supplement your income, it does have tax implications.
6. Minimize Debt and Taxes
- Risk: Low
- Time Frame: 10-20 years
- Skills Needed: Organization, money management, patience
Canada’s tax system is a fantastic opportunity if used correctly. The more money that flows into your account because of taxes paid or investment savings, the faster those funds grow, resulting in increased net worth and financial freedom.
Want to find out some great ways to reduce your taxes in Canada? Read How to Pay Less Taxes in Canada: 10 Tax-Saving Tips.
You should also think about reducing your debts as much as possible. It is impossible to save money if you have to pay a debt every month.
7. Invest in Startups
- Risk: High
- Time Frame: Up to 10 years
- Skills Needed: A keen eye for talent or ground-breaking ideas, a high-risk tolerance, and sound financial management skills
Investing in startups is not like other types of investing. Namely, you’ll need to accept that there’s a possibility of losing your investment money, even though you can earn a large reward.
This is an excellent option if you lack the funds to pursue tech-oriented firms such as venture investors because of high manufacturing and marketing expenses.
Another excellent way is to become an angel investor, which allows you to start with a small amount of money and eventually earn a significant income.
You can take the least risky path by targeting entrepreneurs rather than corporations, as small businesses typically require less capital than established and well-known corporations.
8. Try to Get Promoted
- Risk: Low
- Time Frame: 5-10 years
- Skills Needed: Hard working skills, strategy, ambition
Staying at your current job is sometimes the quickest way to make more money. You could request a raise or look into opportunities for advancement. Investing in your primary career may pay off as you accumulate wealth. Additionally, if you have a pension, your contributions will increase as your earnings increase.
You may wonder, “How can I become rich while remaining with the firm?” Take courses, consult with a life coach, get advice from a CEO, and just gather ideas for self-promotion. The solution is simple: work harder, be patient, and invest in your career and future.
9. Become an Internet Celebrity
- Risk: High
- Time Frame: Can vary from days to years
- Skills Needed: Self-promotion, artistic skills, presentation, extreme creativity, interpersonal skills
Many Canadian Instagram, TikTok, and other social media celebs have net worths in the millions. So, while the Internet is not Hollywood, the chances of becoming wealthy as an internet superstar are similar to those of becoming a famous singer or actor.
However, you will need to devote a significant amount of time and energy to becoming a successful internet influencer. On the plus side, this could be the fastest way to get rich in Canada and worldwide.
You have a good chance of becoming an internet celebrity if you do something you enjoy and get a lucky break. There are numerous paths to becoming an internet celebrity, so pick one and go for it.
10. Freelance as a Side Hustle
- Risk: Low
- Time Frame: 3-5 years
- Skills Needed: Organization, marketing, creativity, tenacity, and emotional fortitude
Working extremely hard under the pressure of handling multiple jobs is not the quickest way to become a millionaire. Working a 9-to-5 job and having a side hustle as a freelancer requires excellent time management.
Yet, staying consistent with the current freelancing industry and having a few in-demand abilities could be your ticket to making more money than working for one company or business.
Remember that as a freelancer, you can take breaks whenever and wherever you want. This is also an excellent option for stay-at-home moms. You won’t have to wait for weekends or specific seasons of the year to relax, and your time management will allow you to make more time for other commitments.
11. Live Frugally and Limit Your Spending
- Risk: Low to high
- Time Frame: One to two decades
- Skills Needed: Financial discipline, strategy, patience
Frugal living involves spending, tracking, and limiting one’s use of funds. It is about making sound financial decisions and using money wisely rather than prioritizing lifestyle or fleeting pleasures.
Is being frugal the same as being stingy? On the contrary. Frugal living does not imply living as cheaply as possible. Instead, it is about making deliberate decisions that allow you to save money to become wealthy and enjoy life’s simple and significant pleasures.
So there you have it – a comprehensive guide to wealth creation in Canada. Finally, we would like to remind you that building wealth in Canada isn’t the easiest task. It takes a lot of effort, dedication, and sometimes making tough decisions.
However, if you are willing to put in the effort, these are excellent ways to get started on your path to riches. Thank you for reading!
Canada is a prosperous country where affluence is more likely than in other parts of the world. However, keep in mind that among the factors influencing wealth accumulation are legalities, expenses, income, and investment decisions.
To be considered wealthy by Canadian standards, you must have at least $1 million in net worth.
If you’re wondering how to get rich in Canada, you can start by looking at the highest-paying jobs in Canada, such as software developer, surgeon, or lawyer.
Switzerland, Singapore, and the United States are the easiest countries to get rich in because they are considered tax havens. The countries with the most native rich people per capita are the Scandinavian countries. However, the United Arab Emirates, Australia, and Canada are quickly emerging as new destinations for millionaires.