Listening to stories of most rich people around the globe, we all would agree that investment in certain assets has helped the rich amass more wealth.

In this article, we would not look at how to make money, rather how you can make more money from the money you are receiving already.

It is clear that rich people invest their money in assets that’s why they become richer each day, certainly, there are a number of assets they are investing and am sure you would like to know more about these assets.

Before we look at different investment options, I would like to assure you that North America and Canada in particular, is a fertile ground to invest in, that’s why over $20 billion of foreign capital enters Canada each year. This is because the political stability in the country creates a very good business climate, thus cushioning investments in the country.

Well it will be unfair to talk about investments and not mention risk, almost every type of investment involves some risk.

Generally, the higher the potential return, the higher the risk. Risk is the potential of losing your money when investing or the level of uncertainty regarding what you will earn or lose on your investment.

Depending on the depth of your pockets and obviously considering your preferences you can invest like rich people in the following assets :


Rich-people cash

Cash is a very liquid investment plan you can start with. There are many ways to invest your cash in and one of them is bank deposits.

You can deposit cash and earn interest on your money in one of Canada’s banks offering high-interest rates like EQ bank and Tangerine.

This is a very liquid form of investment because you are able to get your cashback the soonest time possible when you request a withdrawal. Liquidity will bring about flexibility because you will be able to take up other business opportunities that present themselves to you in a short time possible. 

Also, the risk involved in this type of investment is low because eligible deposits are automatically covered at each CDIC member financial institution. Of which most banks, federally regulated credit unions, as well as loan and trust companies, are members. Meaning if your institution closes, CDIC will reimburse your insured funds (including interest).

Real Estate ?

Real estate in one lucrative form of investment with many ways to realise your returns.

Even with limited knowledge in real estate, you can start your real estate holdings, one good way to do it is through real estate investment trusts or REITs in Canada. Real estate investment trusts invest in income-producing real estates, such as office buildings and hotels. This way you start earning returns on your investments in the shortest time possible since these trusts are already set up earning companies.

Rent income is one most enjoyable one because money will be coming in every month with little operating costs. This is one of the biggest reasons why rich people love real estate, once the property starts giving you rentals, the operating costs of running the property also go down. The only costs that you will have to be attending to are the repairs and maintenance costs which come once after a very long while, otherwise, at this point your focus is on rent receivables.

Mind you, rent can be received from residential real estate, where you rent out your property for people to live in as their place of residence, commercial real estate, where businesses use you property for offices and work area, industrial real estate, thus when companies rent you property for manufacturing and other industrial work purposes, and you can also rent out land for cultivation and agricultural activities.

Because the rental purposes differ thus the average returns on investment tend to differ based on property investment strategies. Residential real estate has an average ROI of 10.6%, commercial real estate has an average return on investment of 9.5%, and REITs have an average return of 11.8%.

Despite the general appreciation of properties due to the increase in the indigenous population, Canada’s population is also influenced in many different ways, such as expansion of territory, and human migration. Being a new world country, immigration has been, and remains, the most important factor in Canada’s population growth. The continuous population growth is also positively effecting property appreciation and thus a call for celebration for real estate investors.

Bonds ?

A bond is a certificate you receive for a loan you make to a company or government referred to as the issuer of the bond. It’s amazing that even big institutions like companies and government sometimes look up to individuals to aid them financially when the need arises. In return, the issuer of the bond promises to pay you interest at a set rate and to repay the loan on a set date.

Bonds are super safe investments as they are mostly backed by the government, well, we all know low-risk investments yield low returns. Bonds usually have an average of 3% yearly return, which is probably more than what your bank savings account offers. When the bond has matured the principal amount you invested is paid back.

People buy bonds either directly from the treasury department or through a brokerage firm. Rich people around the world are loving bonds.

Stocks ?

Stocks are an equity investment making you own percentage ownership in a company. If a company has 10 000 shares and you buy 1 000 of those, you become a 10% owner of that company. You probably know that rich people around the world never let go of the opportunity to invest in good Stocks.

Anyone, resident or non-resident could legally own shares in businesses in Canada. Buying stocks has been made easier over the years, investors most commonly buy and trade stock through brokers. You can set up an account by depositing cash or stocks in a brokerage account, that can be managed online or with a broker in person.

The top 5 best brokerage firms in Canada yet are:

Investing in the stock market gives you a chance to grow your money.  The stock market tends to rise in value, though the prices of individual stocks are highly fluctuating daily. Investments in stable companies that are able to grow tend to make profits for investors.

Mutual and Index funds

This is similar to stocks, remember stocks allow to buy shares from an individual company, now here you are diversifying your investment making it a safer investment to make. Basically, mutual and index funds bring in a multiple of companies together and you buy in stock from a package of companies at once.

Mutual funds have higher fees than index funds, otherwise, they both function the same way. Most rich people go for index funds because of their returns influenced by reduced fees costs.

The most popular index funds in the market are Fidelity Zero Large Cap Index, Vanguard S&P 500 ETF, SPDR S&P 500 ETF Trust, IShare Core S&P 500 ETF, SCHWAB S&P Index Fund.

Buying and managing stock one by one is not easy, especially if you are not a pro in the stock market. Index funds come in to cover that gap, you get to buy stock from a basket of companies, pay fees and watch the space.

S&P 500 brings together the best 500 performing companies when a company falls off the top 500, it is replaced with the next performing one. Over the past 90 years, the average annualized total return for the S&P 500 index fund is 9.8%. Isn’t that a great figure!

 Segregated fund

A pooled investment fund, more like a mutual fund, is set up by an insurance company and segregated from the general capital of the company. The main difference between a segregated fund and a mutual fund is the guarantee that, regardless of fund performance, at least a minimum percentage of the investor’s payments into the fund will be returned when the fund matures.

If a beneficiary is named, the segregated fund investment may be exempt from probate and executor’s fees and pass directly to the beneficiary. If the next of kin is a family member (such as a spouse, child, or parent), the investment may also be secure from creditors in case of bankruptcy.

Shared Economy

Over the past years, sharing economy has been growing, allowing rich people to get into business and make extra money from their underutilised houses and cars. Remember the house you buy to live in is not an asset because it is not bringing in returns, your vacation house is even worse because it doesn’t even provide you with daily shelter, they are all liabilities. Sharing economy is a peer-to-peer based activity of providing and acquiring goods and services.

Airbnb is a good example of sharing economy, people put their secondary homes up for accommodation services and generate income from them rather than letting it wait for the next vacation. Registering your car with uber and selling your goods on ebay or other online retailing platforms are  also ways of utilising shared economy and make money.

This business model allows investors to get more returns from their assets as it eliminates middle man, thus also makes transactions more efficient at reduced costs.


As much as we all might get unique business ideas or designs, there are some who take a step further and make money out of their ideas, and thus where patents come to play. It is an intellectual asset giving you the right to use your idea and make money from it without any competition for a number of years.

The Canadian Intellectual Property Office, says a patentable invention or idea must satisfy three requirements: Novelty (Is it the first of its kind?) Utility (Does it actually work, and does it prove useful?) Ingenuity (Is this a non-obvious improvement or development?).

When your idea is sold well it has very huge returns, think of other patents like Converse All Star, how much they get as patents each year certainly millions of dollars.

Brand and Goodwill

There is a slight difference between brands and goodwill, even though they are both of value to any business. A brand footprint you live among your customers, it is what you are identified with while goodwill is how your customers feel about your business.

These are non-tangible assets that you can invest in and they will surely pay off. Take for instance Apple Inc. the Apple brand is focused on lifestyle; imagination; innovation; passion; and power-to-the-people through technology. Apple has managed to build their brand in such a way that their customers are happy to pay seemingly high prices for their gadgets when compared to other brands.

Our own Matty Matheson is a good example of people who have successfully invested in their brands. Matty’s rise into fame started with a cooking show on the Vice- Munchies Network, hosting multiple seasons of the popular show ‘Keeping it Canada’. Today he is owning multiple restaurants across Canada.

People ?

Yep, rich people are investing in people.

People are a very good investment because they are the ones who drive the success of any organisation. Companies with their computers and other equipment return no value if they are not driven by people.

Good business people know the value of people in their organisations that’s why they take a step further and invest in their employees. You can invest in people through skills development, better remunerations and benefits and creating a conducive work environment for them.

Investing in people will give return to you motivated and efficient team that will be able to tackle business deals and projects and even come up with new ideas on improvement and increasing profitability

Raw Materials and Commodities

The prices of raw materials and commodities fluctuate depending on the market. Smart people buy at a low price and sell them when the prices high due to high demand.

You can invest in various commodities like gold, platinum and other precious metals, oil and food staffs like rice and coffee.

Investing in commodities is less risky than stocks, actually, the risk is about 14% lesser.

Over the past 15 years, the price for gold has increased by 278%

Art and Vintage cars

Art is a long-term investment, it is a good investment for patient investors because the profits won’t be as quick as that of stocks and commodities, it can take 10 years or even more to realise profits from art collection.

The good part about art is that it has no correlation to the stock market, meaning, even if the stock market crashes the paintings can still go up in value.

If you intend to invest in any painting or art, it is very critical that you get enough knowledge about the piece of art in question.

Some rich people are buying rare vintage cars that are quickly appreciating in value. You will need more information about the car you want to invest in before buying it. The same goes to other collectables like expensive watches and jewellery. In a nutshell, “Never invest in things you don’t understand”.

 Books, Songs, Digital courses

Books are one of the incredible lifetime investments, you write a book once, and you can sell it for a lifetime. This is the same with songs and digital courses, creating and distributing these assets increases the value of the business and can make you very rich.

 Janette Oke Canada’s bestselling author has sold over 24 million copies of her books, writing explicitly Christian-themed novels.


Earlier on, we spoke about investing in a book as your long term asset and sell over a lifetime. Well, the book you wrote can also make you money through royalties.

To receive royalties, you will have another company use your intellectual asset like your music or using your book for the production of a movie. Payment is then agreed based upon a percentage of gross or net revenues derived from the use of an asset or a fixed price per unit sold of an item of such.


Investing in Yourself generally means you pour money, time, and effort, to develop and enhance yourself from within via education and learning new skills and abilities. This is the best investment ever because you get to tag your desired value on yourself. Many rich people have invested in themselves and continue to do so.

By Parddon Khumalo

Parddon Khumalo is personal finance expert. His primary focus is banking but also tends to venture into wealth creation, fintech and data analytics.

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