Dreaming of wealth, success, and financial freedom? You’re not alone. But here’s the truth: getting rich is almost never a game of chance. It’s a journey of strategic moves, calculated risks, and relentless perseverance.
Whether it’s investing in the stock market, launching a start-up, climbing the corporate ladder, or creating multiple income streams, the path to riches is varied and complex.
Throughout this guide, I’ll demystify the steps on how to get rich in Canada and offer tangible strategies and actionable advice.
There are 52 million millionaires around the globe. Let’s see if we can add you to that list!
How to Get Rich in Canada: 11 Ways
Most ways of getting rich usually take time. This is why you will find very few self-made millionaires and billionaires under the age of 35.
If you were looking for get-rich-quick ideas, I’m afraid this isn’t the list for you. But if you’re willing to put in the effort and have some patience, you’ll resonate with some of the methods below. Here are some realistic ways that you can use to get rich in Canada
1. Negotiate a Higher Salary
Success isn’t just about hard work but also about smart work. One way to work smarter and increase your wealth? Negotiate your salary higher.
Here’s the thing. Your salary is not just a number; it’s a reflection of your value. Convincing your boss to increase your salary isn’t about demanding more money; it’s about illustrating your worth.
Risk of Strategy – Negotiating for a higher salary has its risks, just like every strategy does. You may face resistance, you may get counter-offers, or in rare instances, it could even jeopardize your position. But, remember, no risk, no reward.
Difficulty of Strategy – Getting your salary to the higher end of the spectrum is not a cakewalk. It’s not just about asking but also about convincing. You need to demonstrate your value, back it up with evidence, and present it in a compelling way.
Skills Needed – Picture yourself as a salesman, selling the most valuable product: You. The art of negotiation, understanding of market trends, persuasion, communication, and resilience are critical. The ability to speak the language of numbers to showcase your value is equally crucial.
How Long Will This Take to Execute – Rome wasn’t built in a day, and neither is a salary raise. Depending on your skills and the company’s policies, this can take weeks, months, or even a year. The key is perseverance.
What Do You Need to Get Started – Begin with research. Understand your company’s pay scale, know the market rate for your job, and then look in the mirror and honestly evaluate your contribution. Craft your proposal, rehearse your pitch, and then take a leap of faith.
Remember, your future wealth starts with the negotiation of your present income. Your ability to drive that negotiation higher is a ticket to a richer life. As they say, a penny saved is a penny earned. Here, every penny negotiated higher is a penny closer to wealth.
Related Reads: Average Salaries In Canada By Jobs And Career
2. Get a Higher Paying Job
Let’s focus on a strategy that’s hiding in plain sight: scoring a higher-paying job.
Here’s the deal. Moving up the salary ladder isn’t about job-hopping aimlessly. It’s about strategic growth, choosing the right opportunities, and positioning yourself as an asset that any employer would covet.
Risk of Strategy – There are some risks. The higher the pay, the higher the expectations. You could face tougher competition, more pressure, and sometimes, longer hours. The question is, are you willing to embrace the challenges for a bigger paycheck?
Difficulty of Strategy – This isn’t a cakewalk. Climbing the salary ladder involves constantly upskilling, networking, and proving your worth. You’ll need to show not just your current capabilities but also your potential to grow with the company.
Skills Needed – Consider yourself an entrepreneur, and your skills are your business. You need top-notch industry skills, stellar communication, and the ability to showcase your strengths effectively. And of course, negotiation skills to seal the deal.
How Long Will This Take to Execute – Don’t expect instant results. It might take months or even years to land that high-paying dream job. But remember, patience is the companion of wisdom.
What Do You Need to Get Started – Start by auditing your skills, identifying the gaps, and planning your upskilling journey. Network actively, update your CV and LinkedIn profile, and keep an eye on lucrative job openings.
Your journey to wealth could be a single job change away. Remember, every dollar earned at the new job is a step closer to your dream wealth.
Related Reads: Highest-Paying Jobs In Canada
3. Negotiate Equity at Your Job
Want to make your fortune as an employee? Let’s talk equity. Picture this: You join a promising start-up or an established company that offers equity to its employees. This equity – shares of the company – could significantly increase in value, turning your hard work into serious wealth.
Risks and Difficulties of Strategy – Keep in mind, there’s no guarantee of success. The company could fail, or the equity might not appreciate as much as you hope. You’re betting your financial future on the success of the company.
How Long Will This Take to Execute – Patience is key here. It often takes several years for equity to vest, and it could take even longer for the company to succeed to the point where your equity is worth a significant sum.
Skills Needed and What Do You Need to Get Started – Imagine yourself as an in-demand expert. You need sought-after skills or experiences that companies are willing to incentivize with equity. To get started, identify opportunities, negotiate an equity package as part of your compensation, and work hard to contribute to the company’s success.
Real-World Examples – Take a look at early employees of Google, like Craig Silverstein, the first employee who became a multi-millionaire through his equity. Or consider WhatsApp employees who received generous equity and became incredibly wealthy when Facebook bought the company.
Remember, this strategy isn’t just about getting a job. It’s about strategically choosing opportunities where your efforts could lead to substantial wealth.
4. Get Your Debt Under Control
Getting your debt under control is akin to cleaning the dust off your gold mine. You won’t be able even to start getting rich until you have this sorted out. It’s about making smart financial decisions, trimming unnecessary expenses, and allocating your resources effectively to reduce liabilities.
Risk of Strategy – Taking this path could mean sacrificing immediate pleasures for long-term gains. You might have to cut back on luxuries and live frugally until your debt is under control.
Difficulty of Strategy – It’s not going to be a walk in the park. Debt management requires discipline, patience, and a good understanding of your finances. You’ll need to stick to your budget even when temptations abound.
Skills Needed – Picture yourself as a shrewd businessman dealing with debt. You need budgeting skills, a good understanding of debt management strategies, and the ability to make tough financial decisions. And of course, resilience to stay the course.
How Long Will This Take to Execute – There’s no overnight success here. Depending on your debt load and repayment strategy, it can take months or even years. But remember, slow and steady wins the race.
What Do You Need to Get Started – Start by making a detailed list of your debts. Understand your spending habits, create a realistic budget, and identify areas where you can cut back. Then, chalk out a debt repayment plan and stick to it.
Remember, getting rich isn’t always about making more money; it’s also about managing your existing money wisely. Take control of your debt, and you’re one step closer to financial freedom.
5. Saving money and living frugally
Getting rich through frugality isn’t about living on bread and water. It’s about making thoughtful decisions that prioritize long-term financial health over short-term gratification.
Difficulty and Risks of Strategy – There’s the risk of missing out on immediate pleasures and the challenge of maintaining a lifestyle that may not match your peers’. Living frugally requires consistent discipline, the ability to make hard choices, and the resilience to stick to your financial plan even when temptations beckon.
Skills Needed – Picture yourself as a money-saving ninja. You need budgeting skills, a keen eye for cost-effective alternatives, and the ability to differentiate between wants and needs. Negotiation skills can also come in handy to score the best deals.
How Long Will This Take to Execute – Let’s be clear. This isn’t a quick route to riches. Depending on your savings rate and financial goals, it could take several years to build significant wealth.
What Do You Need to Get Started – Begin with a detailed budget that reflects your income, expenses, and savings goals. Then, identify areas where you can cut costs without sacrificing your quality of life.
Remember, the journey to wealth isn’t about how much you earn, but how much you save. By living frugally and saving wisely, you can accumulate wealth one dollar at a time.
Related Reads: Frugal Living Canada Tips
6. Invest in Dividend Stocks
Investing in dividend stocks is like planting a money tree in your backyard. You buy shares of companies or funds that pay dividends, and you reap regular payouts, in addition to potential capital appreciation.
Risks and Difficulties of Strategy – Investing involves risk. The market can be unpredictable, and dividends and returns aren’t guaranteed. Additionally, this strategy requires understanding complex financial concepts and staying updated with market trends.
Skills Needed – Imagine yourself as a financial Sherlock Holmes. You need analytical skills to evaluate potential investments, patience to wait for your investments to grow, and emotional stability to withstand market fluctuations.
How Long Will This Take to Execute – This isn’t a ‘get-rich-quick’ scheme. Building substantial wealth through investing could take years, even decades. But as Warren Buffet once said, “Wealth is the transfer of money from the impatient to the patient.”
What Do You Need to Get Started – Start with basic financial literacy and understanding of the stock market. Then, set up a brokerage account, decide your budget for investing, and start researching potential investments.
Real World Example: Warren Buffett, one of the wealthiest individuals in the world, has used this strategy extensively. Through his company, Berkshire Hathaway, Buffett has invested in numerous dividend-paying companies, allowing him to grow his wealth exponentially over time.
By patiently investing in dividend stocks, you could build a steady income stream that fuels your journey to wealth.
Related Reads: Best Canadian Dividend Stocks
7. Invest in ETFs
ETFs, or Exchange-Traded Funds, are a collection of stocks, bonds, or other assets that you can buy or sell on a stock exchange. It’s basically like buying a slice of the market, diversifying your portfolio, and minimizing risk.
Risks and Difficulties of Strategy – Like any investment, ETFs carry risk. Markets can be volatile, and while ETFs are generally less volatile than individual stocks, they’re not immune to market downturns. Moreover, understanding ETFs and choosing the right ones requires financial acumen and ongoing market research.
Skills Needed – Envision yourself as an eagle-eyed investor. You need analytical skills to evaluate ETFs, patience to ride out market fluctuations, and decision-making skills to buy and sell at the right time.
How Long Will This Take to Execute – Building wealth through ETFs isn’t an overnight affair. It could take several years, even decades. But remember, slow and steady often wins the race.
What Do You Need to Get Started – Kick off by understanding the basics of ETFs and how they work. Set up a brokerage account, decide your investment budget, and start researching different ETFs.
8. Build Multiple Income Streams (Start Side Hustles)
Building multiple income streams isn’t about working 24/7; it’s about making your money and skills work for you. Launching a side hustle, investing, freelancing, or renting out property can turbocharge your income, while you maintain your primary job.
Risks and Difficulties of Strategy – Don’t get me wrong, this isn’t a risk-free ride. It requires juggling responsibilities and managing time effectively. Not all side hustles are successful, and failure can result in financial losses. Plus, spreading yourself too thin might affect your work-life balance.
How Long Will This Take to Execute – Getting rich through multiple income streams won’t happen overnight. Establishing successful side hustles and investments can take months, even years. But remember, patience pays dividends in the pursuit of wealth.
Skills Needed and What Do You Need to Get Started – Think of yourself as a budding entrepreneur. You need time management skills, entrepreneurial spirit, resilience, and of course, specific skills for your chosen side hustle. Start by identifying your skills and resources that can be monetized. Then, create a strategy, get the tools you need, and dive in.
Real World Example: Gary Vaynerchuk, a serial entrepreneur and internet personality, started with a wine business, then built an audience through his YouTube channel, launched a media company, and invests in other businesses, showcasing the power of multiple income streams.
Remember, the journey to wealth is not a one-way street; it’s a multi-lane highway. By diversifying your income, you’re not just hedging against uncertainty; you’re accelerating your wealth creation process.
Related Reads: Best Side-Hustles In Canada
9. Building an Audience
Building an audience is about attracting and engaging a community of followers. Whether it’s through a blog, a YouTube channel, a podcast, or social media, when you create valuable content, you draw in an audience.
Once you have a loyal following, you can monetize it through sponsorships, product sales, memberships, or advertising.
Risks and Difficulties of Strategy – Building an audience is a challenge. It takes time, creativity, and consistency. Plus, there’s no guarantee of success. You might invest time and resources without seeing an immediate return.
How Long Will This Take to Execute – Building a loyal audience isn’t a flash in the pan. Depending on your content, platform, and marketing strategy, it could take months, even years to establish a substantial and engaged audience.
Skills Needed and What Do You Need to Get Started – Think of yourself as a charismatic leader. You need content creation skills, social media savvy, marketing acumen, and the ability to engage and connect with your audience. To get started, identify your niche, create compelling content, and choose the right platform to reach your potential followers.
Real World Example: Joe Rogan, a stand-up comedian and podcast host, built a large audience through his podcast “The Joe Rogan Experience.” His audience has become so valuable that Spotify signed a deal with him worth over $100 million.
Remember, building an audience isn’t just about numbers; it’s about building relationships. When you connect with your audience and provide value, they become your pathway to financial success.
10. Start a business
Intrigued by the idea of being your own boss and building wealth? Starting a business is all about spotting a market need and fulfilling it effectively. Whether it’s a groundbreaking tech startup or a local coffee shop, a successful business can be a powerful wealth generator.
Risks and Difficulties of Strategy – Let’s not sugarcoat it: entrepreneurship involves risk. Many businesses fail. It requires financial investment, considerable effort, and the ability to navigate market uncertainties.
How Long Will This Take to Execute – Creating a successful business isn’t a sprint, it’s a marathon. Depending on your business model, it might take years to become profitable.
Skills Needed and What Do You Need to Get Started – Picture yourself as a savvy business leader. You need market understanding, financial acumen, resilience, leadership, and specific skills relevant to your business. To kick-start, identify a market need, create a business plan, secure initial funding, and take the entrepreneurial leap.
Real World Examples – Look at Jeff Bezos, who started Amazon from his garage, or Sara Blakely, who turned $5,000 into Spanx, a billion-dollar business. Their journeys show that with the right idea, relentless effort, and a bit of luck, starting a business can indeed lead to enormous wealth.
Remember, starting a business isn’t just about making money; it’s about creating value. As an entrepreneur, you have the opportunity to solve problems, serve customers, and yes, get rich in the process.
Related Reads: Best Business Ideas To Start In Canada
11. Invest In Real Estate
Real estate investing isn’t just buying property directly. It’s also investing in Real Estate Investment Trusts (REITs), real estate crowdfunding platforms, or even flipping houses. These pathways offer different levels of involvement, capital requirement, and risk, providing diverse opportunities to tap into the lucrative real estate market.
Risks and Difficulties of Strategy – Real estate isn’t a surefire bet. Physical properties demand significant capital, face market volatility, and come with maintenance woes. REITs and crowdfunding platforms, although less hands-on, are still subject to market risks.
How Long Will This Take to Execute – Building wealth through real estate isn’t an overnight success story. Depending on your strategy and market conditions, it could take years to see substantial returns.
Skills Needed and What Do You Need to Get Started – Picture yourself as a savvy real estate investor. You need financial understanding, market awareness, and savvy risk evaluation. To start, define your investment goals, educate yourself about the various investment options, gather the needed funds, and start your investment journey.
Real World Examples – Donald Bren, a notable figure in commercial real estate, built a fortune via direct property investments. On the other hand, people like Thomas Barrack Jr. accumulated wealth via REITs, showcasing that various paths lead to real estate riches.
Remember, real estate investing isn’t just about buying properties; it’s about strategically leveraging the property market to build wealth.
Related Reads: Best Real Estate Investing In Canada
Do This Before Attempting to Get Rich
Before you start your journey to getting rich, make sure you have all of these points sorted out:
- Assess your current situation: Evaluate your income, expenses, debts, and assets to understand your starting point.
- Set financial goals: Clearly define your short-term, medium-term, and long-term financial goals. Your objectives should be SMART (Specific, Measurable, Achievable, Relevant, and Time-bound).
- Create a budget: Develop a budget that tracks your income and expenses. Ensure that you allocate money for savings, debt repayment, and investing.
- Cut expenses: Identify areas where you can reduce spending without sacrificing your quality of life. This may involve cutting out non-essential expenses or finding more cost-effective alternatives.
- Pay off high-interest debt: Prioritize paying off high-interest debt, such as credit card balances, to reduce the overall interest you pay.
- Build an emergency fund: Save 3-6 months’ worth of living expenses in an easily accessible account to cover unexpected expenses and reduce the need to take on more debt.
- Increase your income: Look for ways to earn additional income, such as taking on side gigs, freelancing, or starting a small business.
- Invest wisely: Learn about different investment options and start investing in assets that have the potential to grow in value over time, such as stocks, real estate, or a small business.
- Develop valuable skills: Invest in your education and professional development to enhance your earning potential.
- Network: Build connections with people in your industry and learn from successful individuals who have achieved financial success.
- Stay disciplined and patient: Building wealth takes time and requires consistent effort. Stick to your financial plan and be prepared to make adjustments as needed.
- Avoid lifestyle inflation: As your income increases, it’s essential to maintain financial discipline and avoid unnecessary increases in spending. Instead, focus on saving and investing to achieve your financial goals.
Stay focused on your goals, learn from your mistakes, and be open to adapting your strategies as you progress.
What Is A Rich Canadian?
One percent of Canada‘s population holds about a quarter of total Canadian wealth at almost $3 trillion. That’s nearly $8 million to each of the wealthiest Canadians. However, that may not be an adequate definition of a rich Canadian.
Some Canadians are asset-rich. They may have a home worth more than a million dollars but not enough liquidity or a decent income. Others might have a really high-paying job or a business but not enough tangible assets to their name.
For me, a rich Canadian has enough income-producing assets (e.g., dividend stocks, rental properties, other investments) to sustain them even if they are not actively working.
An example would be having $3,000,000 in income-producing assets. Even at 4% a year, they can get you $10,000 a month. If you already have an income source, you might be considered rich at just one-third of that. And it’s aside from your own home, which reduces your housing expenses quite drastically.
Another definition of a rich Canadian is by income threshold. As per Stats Canada, people belonging to the top one percent income group have an average income of $513,700/year and a median income of $345,300/year as of 2019.
FAQs on How to Get Rich in Canada
Jobs that Will Make You Rich in Canada
In Canada, lucrative careers include surgeons, physicians, dentists, and lawyers. High-earning corporate roles, tech positions like IT managers and software engineers, and real estate brokers also offer wealth potential. Lastly, engineering managers, particularly in oil and gas, are well-compensated.
Is it Easy to Get Rich in Canada
Getting rich anywhere, including Canada, usually requires hard work, smart financial decisions, and often, a certain degree of luck. High-paying careers can help, but no guarantee exists. Success often depends on individual effort, skills, opportunities, and financial management.
How to Become Rich Overnight
Becoming rich overnight isn’t typically feasible. It often involves high-risk scenarios such as winning a lottery, making a high-risk investment, or inventing a high-demand product. But, these are not guaranteed and can result in significant losses. Sustainable wealth usually comes from hard work and smart decisions.
I hope you enjoyed this list, and I sincerely apologize if I crushed any “get-rich-quick” fantasies you might have had before reading this.
However, if you are willing to work hard and make some difficult choices, this “how to get rich in Canada” list can help you achieve your goal—or at least shortlist the ways you can consider pursuing it.
Want to see how much the richest Canadians earn? Learn more about the top 1% of income earners in Canada here.