Adam McHenry, CFA, MBA

Portfolio Manager, Raymond James Ltd.

Hello, my Mississauga neighbours!

Today, we’re tackling a topic that might raise a few eyebrows - the difference between being rich and being wealthy. The two are often confused and used interchangeably, but there is a very big difference between them.

Being rich is like owning the biggest BBQ on the block. It’s flashy and fun. You have the cash to splurge on the finest meats. It’s impressive, but it might not last beyond a few great summers.

Wealthy, on the other hand, is like having a farm that continuously supplies the best, tastiest ingredients for your BBQ. It’s about possessing assets that generate income over time, ensuring not only a great BBQ this summer, but every summer to come.

So, here’s the golden nugget, folks: “Rich buys the sizzle, wealth buys the steak!”

So, now that we’ve separated our short-term BBQ thrill from our long-term farm yield, how can you develop from a rich spender to a wealth builder?

1. Spend less than you earn: This might seem as straightforward as a Canadian saying “sorry”, but it’s the first crucial step. Living below your means and saving is the seed of wealth growth. A general rule of thumb is to save 10-20 per cent of your income.
2. Invest wisely: Now, this isn’t about hiding your cash under the proverbial mattress. It’s about investing in assets that appreciate over time, like a well-diversified portfolio.
3. Patience is a virtue: Just like waiting for the Leafs to win the Stanley Cup again, building wealth takes time. It’s about longterm growth, not instant gratification.

And, if all this feels as tricky as trying to avoid traffic on the 401, don’t fret. As your reliable financial advisor, I’m here to help you navigate these waters. So, drop by or give me a call. Together, we’ll plan for a future that’s as promising as a summer sunset. Adam McHenry, at your service!

If you would like to know more about how you can become more confident in your financial and investment plan, please reach out to me at 416-901-6500 or email adam.mchenry@raymondjames.ca for a free consultation. For further information, please visit www.adammchenry.com.