Do you know how well you’re doing income-wise? Many of us have no accurate idea because we don’t know how much our peers earn.
While constantly comparing yourself to others may lead to unhappiness, you should know where you stand because it dictates your strategy going forward. If you don’t know where you are today, you can’t plan your future.
To be in the top 1% of income earner’s in Alberta you need to bring home $19,000/month after-tax, to be in the top 1% in Edmonton you need to bring home only $16,500/month after-tax.
One of the best ways to gauge your performance is your after-tax income. At THUT we focus on after-tax income rather than net worth since advancing net worth beyond what you will never spend is a poor use of our limited time.
We are often asked which businesses are wise investments. Different businesses require different skill sets and have a different cost to set up. Some require extensive and expensive education.
According to the latest Edmonton census, the average household income in the Edmonton area is $94,447. This is lowered by large numbers of low earning demographics but we included a sample of client neighborhoods in the table below along with the average earnings for 5 major client groups.
|Henderson Estates, Edm.||182,912||139,404||11,617|
|Oakmont, St. Albert||153,329||118,844||9,904|
|Tech and online sales||300,000||25,000|
|Blue collar trades||180,000||15,000|
Even if you are not involved in a tech-oriented or online business, you can use strategies from those businesses like paying for traffic online, boosting facebook posts, leverage automation apps, and consider disintermediation (cut out the middlemen – source from China, or cut out the bank and learn about cryptocurrencies). SaaS businesses generate on average $150K-$200K revenue per employee (it can be as low as $100k of revenue per employee or as high as $300K per employee).
The similarities in online/tech biz, restaurants, and some construction outfits are scalable practices.
This brings up another question, “Why Edmonton?”
Edmonton is a global leader in the artificial intelligence (AI) and machine learning (ML). The University of Alberta was ranked #2 in the world for AI and ML. Originally designed for the world’s largest hydrocarbon processing region, THUT is now tailored for any Canadian corporations that earn at least $400,000 per year including GST/HST.
- Alberta is a monster economy and even during a recession, Alberta’s per capita GDP exceeds $80K – on par with Switzerland’s.
- With housing more affordable in Alberta vs. Toronto and Vancouver, there is more disposable income to capture from Alberta’s affluent consumers.
If you don’t like your after-tax take household income, improve it since time is the only resource you can never get back.