Are you aiming to get rich and live for long-term financial independence? The self-made rich were able to grow wealth by taking three main paths. Hopefully, youâre already on one of them.
Saver-investor path
Thereâs a difference between a saver and an investor. You can be successful in both. An excellent saver is someone who saves 20% of his monthly income and lives off 80%.
Even if youâre doing a significant job saving, you canât get rich without investing some of your money in assets such as stocks. You can prudently invest by choosing the appropriate stocks. An example of a good investment is North West (TSX: NWC).
The Canadian retailer that focuses on small markets pays a respectable dividend of 4.26%. One advantage of investing in this $1.39 billion company is that the handful of sectors where it operates offers less or no competition.
North Westâs grocery and retail operations are in the far-flung areas of Canada as well as the U.S. The company also operates in the small island countries of Barbados, Cayman Islands, Guam, and the British Virgin Islands.
For the last three years, North West has been consistently growing revenue and turning in decent profits. The annual growth estimate for the next five years is 13.5%. With the robust retail air cargo businesses, North West will provide you with gradual returns over the long term.
Climbing the corporate ladder path
Some of the wealthiest people today rose from the ranks to become senior executives. They started at the bottom of the corporate ladder, then slowly worked their way to the top. With every promotion to a higher level, you get can a pay increase.
With this path, you would be devoting long years of service to the company. The rewards, like profit sharing or stock options, would form part of your benefits as a senior executive. Youâll have plenty of capital at your disposal to nurture your financial growth.
Dream like an entrepreneur path
Wealthy people donât go on careless spending sprees, take endless vacations, or stop looking for profitable opportunities. They either put up businesses or purchase real estate investment properties. If you donât have a sizable amount to do either, invest in a real estate investment trust like CT REIT (TSX: CRT.UN).
This $3.13 billion company owns 325 income-producing, top-quality commercial and residential properties across Canada. Its most significant tenant is Canadian Tire — a leading retail brand in Canada and an investment-grade company.
CT is one of the successful REIT IPOs on the TSX. For less than $15 per share, you get paid 5.13% dividend as a quasi-landlord. Your savings can grow faster if you reinvest the dividends from this REIT stock.
Because of its rock-solid retail real estate portfolio covered by long-term leases and robust financial health, CT REIT is a low-risk and dependable wealth provider.
Be like the wealthy
The key to getting rich is letting your money work for you. It would be a waste if you have a pile of savings but canât grow the dough some more. North West and CT REIT offer less risk and deliver healthy returns.
One final word is that wealthy people donât spend more than what they earn. You should have the same financial discipline and long-term commitment to be rich in your own right.
