You’ve most likely questioned how to become rich in Canada. How can someone on the lower or middle rungs of the economic ladder rise to financial independence, not merely a rung or two higher? Is it even conceivable when the average Canadian earns only $51,000 per year? The good news is that you can make a significant amount of money here – and it’s a lot easier than in many other countries.
According to the CBC, approximately 2 million Canadians will be millionaires (members of the 7-figure club) by 2023. It will rise by 54% from its current level of roughly 1.3 millionaires. The majority of this wealth gets derived from high property values. According to Zolo, detached property in Vancouver sold for $1.1 million on average between December 2018 and January 2019.
According to the Cap Gemini/RBC Wealth Management 2015 World Wealth Report, which features in this Financial Post article on how to know if you’re rich and why it matters:
- Fewer than 1% of Canadians have investable assets worth $1-5 million USD, which is considered high net worth.
- Mid-tier millionaires comprise less than 0.1 percent of Canadians, or 30,000 people, who have $5-30 million in investable assets.
- Only 3300 Canadians have more than $30 million in investable assets, making them super high net worth.
How to Become Rich
Start a Business
Owning a business might provide you with the funds you require to make investments. It’s a response to one of the most frequently asked questions: “How do I invest when I don’t have a lot of money?”
Furthermore, keep in mind that the wealthiest Canadians are either business entrepreneurs or have inherited fortunes from their forefathers, who were also business owners. You’ll almost certainly need a business to get rich in Canada.
Make the Most of the Canadian System
The Canadian system provides a great deal to its residents to make their lives easier. While these deals will not make you a millionaire, they will help you save money. It would be beneficial if you become familiar with the perks that you have as a Canadian. Here are a few examples:
- Tax Credits
It is a crucial stage towards becoming a millionaire on your own. It’s vital to remember that saving money is more important than making money. Many people have the problem of being more extravagant with their lifestyles when they get vast sums of money, whether from salaries, inheritances, trust funds, or winning contests like the lottery.
Reinvest your passive income
Reinvest your passive income assets’ profits into new passive income assets. Because you can now make many contributions each year, you can benefit from compounding returns. You should be able to make one per month at the very least; This is where true wealth gets generated. Your active revenue (from your business/job) gets converted to passive income (from your investments), and your investments are now purchasing new assets for you. You can increase your investment as those additional assets continue to create revenue. It’s an endless circle.