What the Wealthy in Canada Understand is That…

For years, I have participated in groups like the Entrepreneurs Organization(EO), Tiger 21, and the Toronto Business Society. These groups have what I would call the top 20%—EO—to the top 1% wealthy Canadians—Tiger 21 and Toronto Business Society.

I noticed certain trends that anyone can model as long as they understand that Canada is made up of these two different groups.

The first are Asset owners and money loaners; the second are those who earn money from work and do their best to save. There is nothing wrong with being in either group. 

For most of my life, I was part of the second group, either working for others or working for myself. My parents and their parents were part of this group as well. It wasn’t until about 20 years ago that I discovered the first group and the path to financial independence.

The top 1-20% of Canada’s wealthy is within the asset owners and money loaners group.

Asset Owners – own businesses, personal property, rental property, precious metals, crypto-currency, public equity(stock market), private equity…

Money Loaners – Bond funds, Private Lending, Business loans, Debt lending…

The rest of Canada works for other people or is self-employed and hardworking. They work hard to put food on their tables and live on what they earn. They do their best to save, but they sometimes spend too much and use credit cards, loans, and lines of credit to make ends meet. They find it hard to get ahead because prices increase faster than their wages.

There is also a hopefully small percentage of the Canadian population who lives off the government dole, but if you are reading this newsletter, it is probably not you.

The asset owners and money loaners understand that the system is rigged. You must either own assets or create assets to get ahead.

But the truth is that anyone can do it, you just need to start. You can buy an ounce of silver for less than 45$. Or a fractional bitcoin purchase if you can take the volatility.

If you own real estate, you get the added benefit of Leverage. You own 100% of an asset but only put 20% down. That Leverage gives you a higher rate of return than the devaluation of money over a decade or two.

Being in groups like DurhamREI and finding people who are already asset owners and money loaners makes it easier.

Once you have climbed up this wealth ladder and had success, it is important for me to help other people climb it, too—to help pull them up.

I’m not a realtor or a mortgage broker. I only ask that members participate in the meetings and help each other.

Hope to see you at a future meeting soon!