As children, being rich meant having ice-cream on a weekday and a new bicycle every summer. As teenagers, it was a new car for your 16th birthday and a trip to Disneyland. Now as adults we know it takes a lot more to be rich in Canada, but how much more?
There are two aspects of monetary wealth that one should focus on to determine whether they are rich or not: Income and Capital. While some may have high income, they may also just be starting off in their careers and will have only a small amount of capital. They will not have had the time to save and invest an appropriate amount to have an accumulation of capital.
Conversely, there are those with a large amount of capital and little income. This is sometimes seen with people who may have inherited their wealth but have no skill in generating income. There are many different types of people in the capital heavy category – those who have invested skilfully over the years, showed fiscal discipline, or have been successful at building companies. Ideally, it is best to have both high income and a large capital base.
In Canada, our standard of living varies from coast to coast but income across the country is is closer than you may think. In 2013, MoneySense.ca broke provincial incomes across Canada into 5 categories, ranging from poorest to richest. Surprisingly, even though the Territories have the lowest population, they include very highly paid geologists and engineers.
Broken down by city (and before the Albertan oil industry collapse), Calgary was leading the ‘Richest 20%’ in high income positions with Quebec City with the lowest.
The Financial Samurai.com writes on how to build wealth and offers these 5 tips on how to get rich.
- Depend on yourself – choose a career that allows you to earn higher and develop a skill set that will allow you to increase your income year after year.
- Get a mentor – If you want to become wealthy, learn from someone who already is wealthy. Avoid people who claim to teach you how to be wealthy but they themselves are not.
- Remove disabling belief from your mind – Never tell yourself you cannot do something. If you do not know how to do it, learn, or find someone who can do it for you quickly and affordably.
- Go the traditional route – Work hard at your career, save and invest 10% of what you earn and in 20-30 years, you will have a very healthy bank account.
- Be your own boss – Start by buying your name URL and start your brand website. We all have ideas for great projects that could turn into profitable companies. Having a website prepared saves time.
Wondering how much you are worth? Use this easy Net Wealth Calculator to find out! Use this as your starting point to begin building a financial plan that will enable you to retire financially healthy at whatever you desire.