3 Simple Paths You Can Take to Get Rich

There are paths you can take to get rich. If you are on one of them, you have the option to invest in high-paying dividend stocks like The North West Company (TSX:NWC) and CT Real Estate Investment Trust (TSX:CRT.UN) to maintain your wealth.

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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, you’re already on one of them.

Saver-investor path

There’s 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 you’re doing a significant job saving, you can’t 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 West’s 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. You’ll have plenty of capital at your disposal to nurture your financial growth.

Dream like an entrepreneur path

Wealthy people don’t 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 don’t 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 can’t grow the dough some more. North West and CT REIT offer less risk and deliver healthy returns.

One final word is that wealthy people don’t spend more than what they earn. You should have the same financial discipline and long-term commitment to be rich in your own right.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Christopher Liew has no position in any of the stocks mentioned.

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