Canada is a country known for its natural beauty and diverse population, but it’s also home to a growing number of Millionaires, thanks in large part to a flourishing housing market. As of 2023, there are over 2 million millionaires in Canada, depending on how the figure is calculated.
While many of Canada’s millionaires are concentrated in its largest cities, specifically Toronto and Vancouver, there are plenty of wealthy Canadians living in every province.
What Is a Millionaire?
A millionaire is simply a person with a net worth equal to or above one million dollars. This wealth can come from various sources, such as investments, real estate, business ventures, or be passed down from one generation to the next.
Becoming a millionaire may seem impossible for some, but with a combination of hard work, dedication, and financial know-how, it’s an achievable goal for many Canadians.
One of the most common ways individuals accumulate wealth is through investing. This involves putting your money into assets like stocks, bonds, or real estate, which have the potential to grow in value over time.
Owning a successful business is another common path to becoming a millionaire. Starting or buying a business with potential for growth can lead to significant profits and, if managed correctly, can make you a millionaire over time. It’s essential to conduct thorough research, planning, and execution when pursuing entrepreneurship.
It’s important to note that while some do, many millionaires avoid flashy lifestyles. Instead, they lead relatively modest lives, often focusing more on financial security and long-term wealth planning than extravagant spending. They adopt mindful spending habits and prioritize saving and investing, which allows their wealth to grow over time.
Remember, when it comes to becoming a millionaire in Canada, there’s no one-size-fits-all solution – your path to building a million-dollar net worth will be unique to your situation and goals.
How to Calculate Your Net Worth
As mentioned, a millionaire is defined as someone with a net worth of one million dollars or more. So, what is net worth, and how is it calculated?
A person’s net worth is considered the difference between their assets and liabilities. You can easily calculate your net worth using the following steps:
Step 1: Make a list of your assets (what you own). The first step in calculating your net worth is to list all your assets. Assets are anything of value that you own, such as:
- Cash and cash equivalents (savings, chequing accounts)
- Investments (stocks, bonds, mutual funds)
- Retirement plans (RRSP, TFSA)
- Real estate properties
- Vehicles
- Collectibles and valuable personal possessions
Step 2: Determine the value of your assets. Next, assign a fair market value to each of your assets. Keep in mind that for certain assets like investments and real estate properties, their values change over time, so it’s essential to stay up-to-date on their current worth. You can use online resources and appraisals as needed.
Step 3: List your liabilities. Once you’ve determined the total value of your assets, list all your outstanding debts or liabilities, which may include:
- Mortgage balance
- Credit card debt
- Student loans
- Car loans
- Personal loans
Step 4: Determine the total amount of your liabilities. Add up the total amount of your listed liabilities. This sum represents all the debt you owe to others.
Step 5: Determine your net worth. You can do this by subtracting your total liabilities from your total assets to find your net worth: Total Assets – Total Liabilities = Net Worth
Remember that calculating your net worth provides you with a snapshot of your financial health in Canada at a specific moment. I recommend that you update your net worth regularly so that you can keep track of your progress.
How Many Millionaires Are There in Canada?
According to Credit Suisse, there were 2,291,000 millionaires by net worth in Canada as of 2022. In fact, over 5% of the total population is estimated to be millionaires. This puts Canada on the map as a country with a relatively high concentration of wealthy individuals.
When it comes to centi-millionaires (those with a net worth above $100 million), Canada ranks 8th, with 514 living in the country in 2022, according to a report from Henley & Partners. This shows that not only is there a significant number of millionaires in Canada, but there is also a growing presence of those with extraordinary wealth.
Keep in mind that these numbers are based on data from one source and that the actual figures can vary slightly due to factors like fluctuating wealth and population growth.
Which Provinces and Cities Have the Most Millionaires?
It should come as no surprise that the highest concentration of millionaires can be found in provinces with large cities and thriving industries. Here are a few provinces with a higher number of millionaires.
Ontario
Ontario is home to the most millionaires in Canada, thanks to its bustling economy, particularly in Toronto, which boasts over 100,000 high-net-worth individuals, or HNWIs (investible assets over one million dollars. In fact, Toronto is home to 18 billionaires and 193 centi-millionaires (net worth over $100 million).
British Columbia
As a popular destination for foreign investors and a boost from industries like tech, film, and real estate, British Columbia, particularly Vancouver, has seen an upsurge in its millionaire population. Vancouver is second behind Toronto, with 37,300 HNWIs.
Quebec
Quebec’s largest city, Montreal, is a thriving cultural and business center. The city has over 17,900 HNIW, showcasing the wealth generated in Quebec’s critical industries like aerospace, technology, and cultural centers.
Alberta
Primarily due to its prosperous oil and gas industry, the province of Alberta has become a vital driver of the Canadian economy. And many Albertans have benefitted from this prosperity. In fact, Calgary has 14,700 HNWIs and is a hotbed for affluent Canadians.
Who Are Canada’s Richest People?
Canada is home to over 60 billionaires. Here is a list of the ten wealthiest individuals in Canada as of 2023, in USD.
10 Richest People in Canada
Name Net Worth
- David Thomson and family $54 billion
- Jim Pattison Group $11 billion
- David Cheriton $9.2 billion
- Anthony Von Mandl $8.7 billion
- Joseph Tsai $7.8 billion
- Alain Bouchard $6.1 billion
- Chip Wilson $5.5 billion
- Mark Scheinberg $5.3 billion
- Emanuele Saputo and family $5 billion
- Arthur Irving $4.8 billion
How Do You Become a Millionaire in Canada?
There are several ways you can grow your net worth to over one million dollars during your lifetime. I’ve listed some of the most tried and true methods below. Keep in mind that many millionaires have utilized more than one of these strategies to grow their wealth.
Save Early and Often
One way to become a millionaire in Canada is to save money early and often. Make it a priority to set aside a portion of your income every month, and invest it in the markets to generate the best possible returns over the long term. While it’s never too late to start investing, your chances of success go way up if you can start when you’re very young.
For example, if you invest $405/month starting at age 20, you will have $1 million by age 60, assuming a 7% annual return. If you wait until age 30 to get started, you’ll need to contribute approximately $855/month (more than twice as much), to reach your $1 million goal.
Start a Business
Many Canadian millionaires have created wealth by starting and growing their own businesses. But life as an entrepreneur isn’t easy, and not everyone succeeds. Stick to your strengths, and be open to seeking advice from others.
Remember that success takes time, so be prepared to face challenges and learn from them.
Choose a High-Paying Career
Not all millionaires started their own businesses. People in high-paying jobs, like doctors, lawyers, and engineers, have a higher likelihood of becoming millionaires in Canada. These careers may require extensive education, talent, or experience, but the potential financial rewards can be significant.
Be Patient
When it comes to becoming a millionaire in Canada, patience is key. Building wealth takes time, determination, and consistent effort. Whether you’re saving aggressively, starting a business, or climbing the corporate ladder, remind yourself of your long-term financial goals and stay focused on them.
Remember, the journey to becoming a millionaire in Canada differs for everyone. Utilize your unique skills, experiences, and resources to create your own path to wealth.
Final Thoughts
Whether you aim to join the ranks of Canada’s millionaires or are simply working to become more financially stable, it helps to know the facts about the country’s wealth.
While the number of millionaires in Canada is rapidly increasing, it doesn’t mean that everyone is experiencing financial prosperity. There is a growing income disparity, with the top 10% of earners making significantly more than the average Canadian income. In other words, when it comes to ensuring all Canadians have an opportunity to be financially secure, there’s still a lot of work to do.
FAQs
What percentage of the Canadian population is classified as millionaires?
In 2022, there were approximately 2,291,000 millionaires by net worth in Canada, according to Credit Suisse. With a population of approximately 40 million as of 2023, it means that about 5.7% of the Canadian population were classified as millionaires. It’s important to note that this percentage may vary over time as economic conditions change and new millionaires are made.
Which Canadian city has the highest number of millionaires per capita?
While the exact ranking can vary depending on the source and year, Vancouver is often considered to have the highest number of millionaires per capita. The city’s booming real estate market and an influx of wealthy immigrants have contributed to this concentration of wealth. However, other cities like Toronto and Calgary are not far behind, as they also have many millionaires living within their boundaries.
What is the total number of millionaires in Vancouver?
Although the exact number of millionaires in Vancouver may differ depending on the year and data source, Vancouver is known to have a high concentration of millionaires per capita. According to Henley Private Wealth, Vancouver had 367,500 high-net-worth individuals in 2022, calculated as having over $1 million in investable assets, excluding principal residence. The figure places Vancouver 29th out of 97 global cities.
How many billionaires are there in Canada?
According to Forbes, there were 65 billionaires in Canada in 2022.
