How to Become a Millionaire in Canada

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Everyone wants to be a millionaire. Who doesn’t? Some want to be super-rich to buy that dream house, cool cars, a couple of investments here and there, and maybe a brand new yacht for pleasure. Others just want to have enough for retirement and to invest their money in stocks to make it grow even more.

We all have our reasons for wanting to be millionaires. Some people would say that becoming a millionaire signifies that their lives are turning out well.

Did you know?

Only about 5.6% of the Canadian population are millionaires.

It is quite difficult, but we’re not saying that it’s not doable. Of course, you can be a millionaire with the right investments. However, becoming a millionaire is not something you can achieve overnight, except you win the lottery or go very viral on social media and milk it to your benefit.

You have to follow the right processes and tips to succeed and really become a millionaire in Canada. Enough talk! Here is everything you must know about becoming a millionaire in Canada.

How to Become a Millionaire

1. Ask Yourself Why You Want It

There should always be a clear and meaningful purpose behind your desire to become a millionaire. Are you tired of working 9-5 over and over again?

Do you want to stop stressing about paying your monthly bills? Are you interested in pursuing a lifelong passion that you cannot do because you have to work hard? Do you want to spend more time comfortably with your family?

These are just some of the reasons why many Canadians want to become millionaires. It would be best if you always had a solid and concrete reason why you want to be a millionaire in the first place.

This helps you work with a goal in mind. Importantly, it serves as your motivation to work hard even when things become difficult, and trust us; it will.

2. Set Your Targets Straight

Now that you know why you want to become a millionaire plotting a road map towards your goal is next. Setting targets and milestones allow you to be more motivated towards achieving your goal and look forward to meaningful accomplishments along the way.

Your first big target might be to generate passive income and get to a point where you don’t have to struggle to pay for your bills and other dues. Achieving this would mean that you are financially independent and well on your way to become a millionaire.

Remember that setting targets allow you to see the end from the beginning. Since becoming a millionaire is such a huge goal, you want to set and celebrate smaller targets.

3. Grow As A Professional And Trust The Process

Everyone thinks they are going to start a business and make a million bucks. However, about 7,000 businesses go bankrupt every year in Canada. That’s a lot!

Except you win the lottery or your grandfather has left you a multi-million dollar inheritance, there is no shortcut to becoming a millionaire on your own. So, you need to stick to the process of growing as a professional and saving money in the process.

This is one way to become a millionaire with the lowest risks, though it can be excruciatingly long and slow. It is also the most secure way to become rich, but you must be ready to work hard for it.

While working in the corporate world, make it a habit to save and even invest a part of your money to make sure you’ll have a stable source of income once you retire in the future.

4. Take Advantage of the Canadian System

The Canadian system offers so much to its citizens to help them live more comfortably. While these offers alone will not make anyone a millionaire, they go a long way in helping you cut down your expenditure. It would help if you familiarized yourself with the benefits available to you as a Canadian. Some of these include:

RRSP

IPP

TFSA

RPP

CPP

EI

RESP

RRIF

Tax Credits

And lots more!

5. Save Money

This is a key step you’ll have to take to become a millionaire on your own. Remember that how much money you save is more important than how much money you make.

The problem with many people is when they receive more significant amounts of money, be it from salaries, inheritances, trust funds, or winning contests and the lottery, they tend to be more extravagant with their lifestyles rather than saving and investing for the future.

Did you know?

A study by the National Endowment for Financial Education revealed that about 70 percent of people who win a lottery or receive large, unexpected cash go bankrupt within a few years.

You must know that no matter how much your money is, it will run out if managed poorly, and if you do not have a savings plan while you’re still at the peak, it will all come crashing down on you.

6. Invest Your Money

Saving your money for the future is one thing, but investing your money and making it grow and collect more earnings is another. Savings accounts are not an excellent way to grow your wealth in Canada.

First, Canadian banks rarely offer high interests on savings accounts; you might earn as little as a hundred dollars for several tens of thousands in your savings account.

If you’re new to investing, you might want to check out ‘Investing in Canada for Beginners

Investment is a good way of distributing your money since it will allow you to see compounding returns, which means that your invested capital earns interest. The interest from it earns even more interest. That means you’re getting more money from investments.

7. Be Mentally Prepared

The journey to one million dollars isn’t a walk in the park. It’s very mentally and physically tasking. You could lose close family, friends, and other relationships on this quest. You must be mentally ready to take the journey while ensuring that other aspects of your life aren’t neglected.

You don’t want to be a terminally ill or lonely millionaire because you placed money above all else.

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Kareena Maya

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Kareena Maya is a freelance writer focused on the personal finance and travel spaces. He frequently writes about credit cards, banking, student loans, insurance, travel rewards and more. His work has been featured in publications such as Forbes Advisor, Bankrate, Credit Karma, Finance Buzz, The Ascent and Student Loan Planner.

Kareena Maya is a freelance writer focused on the personal finance and travel spaces. He frequently writes about credit cards, banking, student loans, insurance, travel rewards and more. His work has been featured in publications such as Forbes Advisor, Bankrate, Credit Karma, Finance Buzz, The Ascent and Student Loan Planner.