How long you’ll need to save to join the millionaire’s club

Canada has 350,300 millionaires, according to a New World Wealth report. If that seems like a lot, you’d be right for thinking that: Canada ranks eighth in the world for the number of millionaires (based on US$).
 
Countries with the most millionaires

CountryMillionaire residents
1. USA4,896,000
2. JAPAN1,314,100
3. CHINA833,800
4. UK760,700
5. GERMANY740,100
6. SWITZERLAND398,800
7. AUSTRALIA369,100
8. CANADA350,300
9. INDIA327,100
10. FRANCE268,600

That’s all well and good for the rich, but what about you? Well, the good news is private wealth in Canada is on the rise. Over the last decade wealth has increased by 23% and the trend is set to continue. By 2028, private wealth is forecast to increase by 30%, to US$7,812 billion. This means Canada will hold the eighth highest levels of private wealth of any country.

Worried all that cash is in the hands of few? Fortunately, Canada also ranks in the top 10 most equal countries based on wealth controlled by high-net-worth individuals (HNWI). 30% of Canada’s overall private wealth is controlled by millionaires, compared to the global average of 36%.

Fun fact: Toronto is the 13th wealthiest city based on private wealth, at US$887 billion.

How to become a millionaire

Looking to join the millionaire’s club?

If you start saving $1,000 a month today, you could become a millionaire by as early as 2061. Assuming you’re starting from scratch and a 3% savings interest rate, you’ll save $1,007,952 in 42 years (this doesn’t factor in inflation).

Want to get rich faster? If you can manage it, squirrelling away $1,500 per month means you’ll have 7 figures in your savings account in 33 years. Not fast enough? Putting away $2,000 per month will get you there in just over 27.

If you feel like you’re struggling to save, you’re not alone. Data suggests Canadians are saving just over $1,200 in an entire year. The good news is it’s never too late to start saving.

Here are 5 ways to supercharge your savings:

  • Set up direct debit every pay
  • Make sure you’re getting the best interest rate
  • Check out auto-saving apps
  • See if your bank has a round-up savings service
  • Negotiate discounts
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