It is every person’s dream to be financially independent and stable. However, few are willing to take the risk to do what it takes and put in the effort to become rich. If you wish to become rich in Canada, the good news is that there isn’t only one road to success. Instead, you gain wealth by making reliable financial decisions over and over again. You need to save regularly, spend wisely, make investments and take some risks throughout your life.
Many seem to think that only those born with money are rich but that is not necessarily true. If one is willing to work and put in some extra effort then learning how to get rich in Canada is the first step you need to achieve your dreams. This article can give you a few ideas on the steps you can take on your quest to get rich in Canada.
In this article
- Who is a Rich Person in Canada?
- 10 Ideas to Become Rich in Canada
- #1. Becoming an entrepreneur:
- #2. Investing in cryptocurrency:
- #3. Grow as a professional, save and invest:
- #4. Grow your passive income:
- #5. Minimize your tax:
- #6. Create a budget and stick to it:
- #7. Start a Side Hustle:
- #8. Becoming an Internet Celebrity:
- #9. Become A Freelancer or Consultant:
- #10. Be Patient:
- Frequently Asked Questions
Who is a Rich Person in Canada?
A rich person in Canada is one who ranks in the top 1% of the Canadian population in terms of net worth. Canadians are rich by several country standards, however, due to the standard of living in Canada, we’ll be using Canada as the focal point.
There are two major kinds of millionaires in Canada; job millionaires, and asset millionaires. The former consists of those who have maintained a high-paying job (say, $250,000 annually) for years and have been able to accumulate wealth in property and otherwise.
On the other hand, asset millionaires are those who have assets that produce steady income (e.g. a running business, an investment, a rental property, etc.) whether or not they’re actively working.
While the latter is more stable, both of the groups mentioned above qualify as rich. However, the question remains how one can become rich in Canada.
10 Ideas to Become Rich in Canada
Here are a few ideas you can take up if you are interested in making tons of money in Canada.
#1. Becoming an entrepreneur:
Becoming an entrepreneur means owning your very own business. Now to do this you need a lot of courage and little capital depending on the type of business you want to own. You need to come up with new ideas and how to attract customers to patronize you. This is risky and can take years before it is achieved but it is satisfying to see your hard work being patronized and noticed. Who knows? You could make it into the Forbes list of richest men decades later.
#2. Investing in cryptocurrency:
This is also one of the ways to get rich. You can start by investing little money into cryptocurrency. But you need to keep up with the crypto market if not you will make a lot of losses. You need to find out the best time to sell off your crypto and the best time to buy one. By doing this you make a profit. Some just buy and leave it to grow but this can only be done for coins that even when the price falls it doesn’t have much effect on the coin. Whether you’re a trader or “hodler”, learn the nitty gritty of an altcoin before you invest in it.
#3. Grow as a professional, save and invest:
This is the most common and less risky way. You can become rich being a company worker. All you need is a high-paying job. If your job pays you around $50,000 to $100,000 and you know how to invest and save, then who knows? Getting promoted at your place of work comes with a salary increase.
Most times, the easiest way to more money is at the job you already have. You can ask for a raise or look for promotional opportunities. As your salary increases, so do your pension contributions, if you have one. If you can invest some sizable part of your salary into the stock market then you can make more. Within a decade or less you might become richer than you expect. And the risks are low.
#4. Grow your passive income:
Passive income is the kind of income that doesn’t require so much time input. In other words, passive income allows you to earn money while you do very little which permits you to make money from several sources simultaneously. However, a lot of upfront work is often needed to generate income-producing assets like a song, a YouTube video, an online course, or a book.
#5. Minimize your tax:
This is one of the less exploited pathways to becoming rich in Canada. The amount of money paid for tax can become a lot if saved or invested. The more money you make, the more tax you pay. By making use of tax-savings strategies, the money saved can go towards growing your net worth and boosting your financial freedom. Here are some common ways to pay less tax in Canada:
Maximize Your RRSP Contributions
A fully funded Retirement Savings Plan will set you on the path to millionaire status. Not only are RRSP contributions tax-deductible, but the money is tax-sheltered until you withdraw it, presumably after retirement.
Donate to Charity
Charitable donations are not only an expression of generosity and kindness; they are also a non-refundable tax credit that will greatly decrease the amount of money you pay for taxes each year. Consider increasing your charitable giving as your income increases. Find out what it takes to claim your charitable tax credits.
Contribute to a TFSA (Tax-Free Savings Account)
In 2009, the Canadian government unveiled the Tax-Free Savings Account, or TFSA, giving Canadians another tax-sheltered investment alternative to the RRSP. The beauty of the TFSA lies in its flexibility. Contributions are not tax-deductible, but unlike an RRSP, you don’t pay tax when the funds are withdrawn. While most people use their TFSA account as additional retirement savings, the funds can be used for any purpose.
Claim Child Care Expenses
If you and your partner are working full-time outside the comfort of your home, you may be able to claim your childcare expenses as a tax deduction. This includes the money for payment for daycare and hiring a nanny or babysitter.
Claim Medical Expenses
Medical expenses not covered by insurance might be tax-deductible. Make sure you read up on the CRA rules and consult a tax professional with any questions you have.
Claim a Home Office Tax Credit
If you are self-employed, you can claim the area of your home that you use as your primary workspace as a tax credit.
#6. Create a budget and stick to it:
You simply can’t become rich in Canada if you can’t control your spending habits. Once you get a handle on your spending, it’s time to create a budget that fits within your monthly income. Your budget planning can help you become financially stable over time. You can create a budget using pencil and paper or a simple spreadsheet. However, people have started using budgeting apps that automate much of the process. For the best budget app experience, the recommended apps are YNAB or Mint.
#7. Start a Side Hustle:
One of the fastest and easiest ways to make more money is by having a side hustle. A side hustle can be any job you do around your regular 9-5 job to make some extra cash. It could be photography, being an Uber driver or making food delivery, freelance work, tutoring, or even singing. The possibilities are endless. Some of our hobbies make a good side hustle job if it isn’t our main work. Some side hustles will pay maybe around $100 per month; others pay $1000. It might seem little, but it can be a huge one on your journey to becoming rich.
#8. Becoming an Internet Celebrity:
Having your channel on social media most especially on YouTube, TikTok, Instagram, and Facebook can generate income depending on what you advertise and the number of followers and viewers that view your post. The higher the view on your post the higher your pay is. The more popular you become the more company endorses you to advertise their product and being endorsed by a company does pay higher.
#9. Become A Freelancer or Consultant:
This is different from your normal starting of business or working as a professional. You have more opportunities and chances when you are free from the stress and constrict of working a regular job. However, being a freelancer is more challenging. If you can keep up with the high and rigorous competition in the freelancing market and have a few of the most needed skills, you might be able to receive more jobs and earn more with less responsibility. In no time, you’ll join the list of those who have become rich in Canada.
#10. Be Patient:
Many people are impatient and so give up halfway to achieving their dream of becoming rich. Becoming a millionaire difficult but many have achieved it. The steps I have listed above will work, but you need to be patient and commit for the long term. Time is the main factor. The more time you spend on building up a good budget, good spending, and savings habits, the more your net worth will increase.5 Steps to Become a Millionaire in Canada
Frequently Asked Questions
What Are the Highest-Paying Jobs in Canada?
At an average annual salary of $150,000, $135,000, and $77,250 respectively, Physicians, Lawyers, and Miners are some of the highest paying professions in Canada.
Can You Get Paid 6 Figures Without a College Degree?
Why is Canada Wealthy?
The Canadian economy is a constantly-growing one because of how diversified it is. Canada is rich in mineral and natural resources and has a proper system in place for utilizing those resources to produce the best results.
Is Canada Richer than the United States?
No. While Canada has one of the most successful economies in the world, the United States of America has been the world economic power for a long time now.
What is the Richest City in Canada?
The richest city in Canada is Guelph, Ontario. The city has amazing scenes, a somewhat high standard of living, and an average household income of just under $108,000.
While the list is not exhaustive, I hope it gave a few ideas on the thousand ways you can get rich legally. Sorry to crush your dream of making quick money however, if you are willing to work hard and do what it takes to make some difficult choices, this “how to get rich in Canada” list can help you achieve your goal or at least shortlist the ideas you are considering to pursue.