Story by Vishesh Raisinghani
It’s easy to think that once you’ve hit that six-figure milestone in your career, you’re financially set. Unfortunately, that assumption doesn’t hold up for many Canadians.
An Angus Reid Institute Economic Stress Index from October 2024 indicated 20% of Canadian households with annual incomes of over $200,000 claimed to be struggling financially, compared with 35% earning less than $50,000 (1).
Additionally, households that are raising children are more likely to face financial stress (2). Families that confess to struggling identify that the topic concern is their ability to cover housing, grocery costs and debt — with the biggest concern being their waning optimism for the upcoming year.
Despite these fears and very real financial stressors, it appears that wealth is less about how much you earn and more about how you think about money — and what you do with it.
To help, here are five ways higher-income earners approach life, career and finances — and how the rest of us can learn from their money management skills.
1. The rich are subtle about their wealth
Contrary to popular belief, most multimillionaires in Canada aren’t cruising around in a neon orange Lamborghini or smoking cigars stashed in their Gucci bags. Many high-net-worth (HNW) or well-off Canadians tend to downplay their wealth and financial standing, even when they have significant assets.
According to The Globe and Mail, this behaviour is likely due to cultural modesty, especially when discussing money (3). Plus, many Canadians, including those with high incomes, feel less wealthy than they actually are — suggesting attitude trumps practice.
These attitudes follow the “stealth wealth” trend, also known as quiet luxury. As a Canadian normative attitude, quiet wealth means we culturally tend to favour value over brand name. For example, while the market for luxury vehicles holds true for some, many wealthy Canadians prefer higher-end models of tried-and-true makes, such as Ford, Toyota, and Honda, indicating a preference for practical choices over flashy displays of wealth (4).
That frugal instinct doesn’t stop at the dealership, though. It shows up in the small, unglamorous decisions the rich make over and over — like refusing to overpay for things everyone else sets on autopilot.
Auto insurance is a perfect example. Many people renew year after year without checking whether they’re still getting a good deal.
By using a comparison platform like Rates.ca, you could potentially save $500+ by comparing 20+ quotes from top-rated auto insurance providers to ensure you aren’t paying a hidden “loyalty tax” to your current insurer.
Just answer a few basic questions, and Rates.ca will show you the most affordable deals in your area in as little as 3 minutes.
Not only is the process 100% free, but you could also potentially save 20% by bundling your auto and home insurance together.
That’s money freed up to save or invest — which, as it turns out, is exactly what separates the wealthy from everyone else.
2. The rich know how to delay gratification
Another major psychological difference between the rich and the poor is a wealthy person’s ability to delay gratification.
Wealthy Canadians understand that wealth is built over time. A 2017 study showed that when Canadians had extra money, they put it away to save for retirement rather than spending it immediately on a consumer good (5). This ability to save for future financial goals shows that wealthier people — people who earn more or save more — tend to have greater patience and were better at delaying gratification.
The good news is you don’t need iron willpower to build this habit — you just need a system that does the disciplined part for you. That’s where an investing platform like CIBC Investor’s Edge can make a real difference.
With a Regular Investment Plan, you can schedule automatic purchases of stocks, exchange traded funds (ETFs), or mutual funds at intervals that suit your budget. It’s a simple way to stay disciplined — investing a little at a time, without having to watch the market or stress over timing.
Because it’s a self-directed account, you stay in control of every decision, from what you invest in to how often you contribute.
Enjoy low commission fees of $6.95 per trade and no annual fees for the first year. Investors who make over 150 trades in a quarter fall in the active trader category — and can enjoy a discounted commission rate of $4.95 per trade for stocks and ETFs.
Get 200 free trades when you open a CIBC Investor’s Edge account using promo code EDGE2026. Plus, enjoy unlimited commission-free trades on over 180 select ETFs. Terms and conditions apply. Offer ends September 30, 2026.
3. The rich know you need to spend money to make money
Because wealthier Canadians are better at practicing delayed gratification, they’re also more likely to invest their money rather than spend it.
In 2021, about one in three Canadians were invested in the stock market. These numbers will likely continue to grow as broader groups of people begin to invest their savings. A 2023 study from FINRA and the CFA Institute found that Canada has the highest rate of Gen Z investors, with nearly 74% reporting that they have at least one type of investment (6).
Will Gen Z be the next highest group of millionaires? These numbers suggest the younger generation understand the importance of their money working for them, rather than the other way around.
Wealth Tip: To make money you need to spend money, but not on consumer goods. The key is to invest early and often to allow for compound interest and cumulative gains to grow your wealth.
But investing wisely is only half the equation. The other half? Making sure your bank isn’t costing you money you could be investing instead.
Check if you qualify for profession-specific banking perks that can help reduce everyday banking costs.
For example, National Bank offers specialized banking packages for professionals in fields like healthcare, engineering, IT, finance, law, teaching, public service, administration, architecture, agriculture and more. Depending on eligibility, the offer can include:
- Up to 3 bank accounts with no fixed monthly fees, with an eligible Mastercard rewards credit card (Certain fees apply)
- Personal and home equity lines of credit with preferred terms and conditions
- Preferred value-added services like legal assistance and identity theft protection
- Access to a financial advisor
- An eligible Mastercard rewards credit card (Certain fees apply)
According to National Bank, eligible professionals can unlock up to approximately $1,313 in annual savings with higher savings available for select professions such as healthcare and IT.
The special offer covers more than 150 professions, including a wide range of professionals and specialists — and eligible individuals can enjoy even more savings when you combine specific banking products and services.
Find out if you work in an eligible profession and make an appointment to explore your options.
4. The rich know to leverage debt skillfully
Debt can be both bad and good — it’s all about how it’s used.
Lower-income Canadian households are more likely to rely on costly forms of credit to manage their finances. Research from the Financial Consumer Agency of Canada (FCAC) on payday loans shows that users are more likely to be from vulnerable populations, including those in households earning less than $40,000 annually (7).
According to the Bank of Canada’s Financial Systems Review, in 2022 wealthier Canadians tend to use debt for productive investments, such as real estate or business ventures (8). These assets have the potential to grow in value, while consumer goods like cars or electronics lose value over time.
A mortgage is one of the clearest examples of “good” debt. It’s used to acquire an asset that can grow in value over time. But the payoff depends heavily on the terms you lock in from day one.
Whether you are a first-time buyer or moving to a new home, locking in a competitive rate from the start is essential to protecting your budget, potentially saving you hundreds of dollars every month.
A quick five-minute application with Homewise can help you secure a great rate on a new mortgage.
Their free online tool compares offers from over 30 lenders to ensure you get the best deal available for your specific situation.
With good credit and minimal debt, you’re likely to qualify for the lowest rates available. Just be sure to check your credit score before you begin.
5. The rich know to constantly pursue lifelong learning
In a constantly shifting economy, wealthier individuals know the key to preserving and growing wealth is to keep learning new skills and adapting to unexpected changes.
Signing up for professional courses, attending workshops and expanding your horizons, professional education or increasing your financial literacy, can give your career — and your savings — the boost it needs to step up and amplify wealth creation.
Wealth Tip: Invest in education and learning, both for career goals and for financial success.
That same principle applies directly to investing. The more you understand about how markets work, the more confidently you can grow your money. Platforms such as CIBC Investor’s Edge gives you access to expert analysis, investment research and trackers that are specifically designed to help you invest with confidence.
Whether you’re just starting or already trading actively, CIBC provides tailored resources for both beginners and advanced traders.
Start with the basics through their Investing 101 guides — and when you’re ready, take advantage of their advanced trading tools and research to inform your strategy.
Originally published @ Money Canada
