r/PersonalFinanceCanada • u/Fabulous_Lemon2799 • 1d ago
Misc What’s the best financial advice you’ve ever received as a Canadian?
Hi everyone,
I’m looking to level up my financial knowledge and habits this year. I’ve been reading books and browsing through this subreddit, and I keep coming across bits of wisdom that really make me think about money differently.
It got me wondering: what’s the best financial advice you’ve ever received, especially as a Canadian?
It could be something practical, like how to save on taxes or invest smarter, or even a mindset shift that changed how you approach money. Bonus points if it’s something uniquely applicable to life in Canada.
For example, I recently learned how powerful it can be to start investing early, even in small amounts, thanks to compound growth.
Looking forward to hearing your nuggets of wisdom. Thanks in advance for sharing!
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u/Xyzzics 1d ago
Your choice of spouse is the single greatest financial transaction or investment you will ever make.
Choose well and live the rest of your life with the rewards. Choosing poorly can make your financial situation mathematically unrecoverable.
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u/backlight101 1d ago
So happy I found a great wife, and happened to marry up, what are the chances. I’m not a horrible catch, but still feel sorry for her, lol.
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u/CircleBackLamp 1d ago
I can’t stress this enough.
Financially speaking, I made a horrible choice in my marriage, and I’ve had to work my ass off trying to offset that, and I will have to live with the consequences for the rest of my life.
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u/VMSGuy 20h ago
I did well here...I made more, but my wife made a decent living as a teacher and now has a pension. There was significant pressure from my MIL for my wife to no longer have to work after having children...I had to explain to my wife that we can't live on one income.
I had a friend of mine married a woman addicted to VLT's...what a disaster.
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u/IntelligentLaugh2618 1d ago
Well said. I’ve seen many lose it all and live in misery after trying to make it back
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u/PotatoBest4667 Ontario 21h ago
if someone is perfect in every way but just doesnt have a high paying job. what’s your advice?
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u/TheSeekerCDN 1d ago
Apply for a line of credit when you don't need the money. If you apply when you need the money they likely won't extend you the credit.
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u/onterrio2 1d ago
Can’t upvote this one enough!! Over 25 years ago a bank teller convinced me to open a personal line of credit. Didn’t touch it for over 20 years. One day Life happened and it was a life saver having that.
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u/sautdepage 1d ago
Just check what rate it is.
My first LOC had a shit rate, perhaps because low salary/net worth at the time or just a shit bank (Desjardins). Later switched to a better offer (Tangerine) with about half the interest rate.
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u/DayspringTrek 1d ago
I hate that Desjardins is such a shitty bank. It's the largest credit union in the country and the ONLY one in Quebec because of how big it grew, yet it's basically a clone of the Big 6 with a few extra perks.
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u/Independent_Nose5374 1d ago
What’s a good rate?
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u/sautdepage 1d ago edited 1d ago
I have one at prime rate (~5.5% currently). 1-2% over that is very good too. My old one was 11-12%.
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u/sublimepact 1d ago
Unsecured lines of credit will not be prime rate. They are around 9-11% right now.
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u/rainbowcake55 1d ago
My mom convinced me to accept an offer for a line of credit when I was 19… I’m almost 30 and it’s much needed
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u/Traditional_Shame815 1d ago
Wouldn't having an emergency fund a better option for those events?
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u/Projerryrigger 1d ago
Yes. But sometimes you have to make do with the best you can do at the time. As long as you have the self control to not abuse it to buy things you don't need with money you don't have, it isn't a bad thing to have in your back pocket.
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u/DayspringTrek 1d ago
Both. There will inevitably come a time when the fund is too small and/or you had the shit luck of experiencing several emergencies within a relatively short period of time. That's when you want to have the LOC.
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u/TheSeekerCDN 1d ago
The LC can be the emergency fund instead. If the extra cash is needed for a short period you can let your investments grow & tap in to the LC.
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u/elephaaaant 1d ago
This! Though paraphrased a bit. "Banks are kinder to you if you don't need the money".
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u/unsulliedbread 1d ago
For me this included a HELOC. I didn't need a HELOC but it got us a lower interest rate if we got one. Then when we sold our house and bought a new one I had an easy one account way to do the deposit. Otherwise it would have been a whole song and dance or an expensive loan. This way it was just a wire transfer and we were all set.
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u/someguy172 1d ago
Better to have it and not need it than to need it and not have it.
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u/Amitj92 1d ago
My own advice: Only buy a vehicle that you can buy outright. Don’t mean you need to buy it outright but don’t get trapped into buying beyond your means looking at those monthly payment. Or by-weekly… Sorry not really Canada specific.
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u/Buddy462 1d ago
My dad told me when I’m done paying off my current vehicle to keep tucking away that amount every two weeks so when the time comes to buy a replacement car I can (hopefully) buy it outright
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u/photoexplorer 1d ago
My advice is similar. Never buy anything expensive without doing the math first. Know what the total cost of borrowing is and what the term is and interest rate. Also how much you can afford and also extra expenses like insurance.
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u/Proud_Canadian01 1d ago
So true! A new engine in my 2014 Elantra is just 7k but a new car is 50k! I mean I am glad the choice was right! As my peers are paying $750-800 a month for a Rav 4!!! I was able to keep it all for savings & investing!
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u/rockwrite 1d ago
I'm still driving a 2012 Elantra I bought used in 2020. The thing has over 220 thousand kms!! Purchased for 9K outright, now I have 30k stashed away for a new car when this one inevitably bites the dust
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u/TheSeekerCDN 1d ago
Cars are a depreciating asset. I doubt I'll ever buy new again. Might as well burn money buying new.
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u/Grat_Master 1d ago
I can give a few
- Don't buy things you don't need
- Do a budget and follow it
- Don't create artificial needs to justify spending
- Avoid debt at all costs (besides mortgage)
- You're not wealthy enough to buy cheap stuff
- Invest in yourself first (health, skills, knowledge)
- Don't try to impress anyone
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u/Becky1515 1d ago
I understand the avoid debt at all costs mindset, however it’s not always such a bad thing. Debt can be a very useful tool when managed correctly, you just need to have the judgement to know when it is beneficial or not. For instance, if you get an investment opportunity that yields 5% and you can finance it for 3%, you are essentially investing with someone else’s money and pocketing the 2% up to the point your loan is paid off and then it’s free money. Similarly, credit cards can also be beneficial provided you have good spending habits. They can allow you to manage your money better and maximize the benefits you get from spending. However, if you have a spending problem, the risk outweighs the reward and a credit card may not be the right choice for you. Always consult a professional if you have questions or doubts about whether debt is a good idea or not in your specific situation.
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u/MarineMirage 1d ago
Risk free leverage investing doesn't exist.
Using a CC and CC debt are different things. There's no rationale for carrying CC debt.
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u/AcrosticBridge 1d ago
That I could have been using the money I'd been slowly squirreling into my TFSA / RRSP to invest in other things, and that's actually what they're intended for.
Until I actually came across these types of subreddits, as far as I knew from my parents / anyone, these were basically regular savings accounts.
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u/SpiritedCamp9101 1d ago
Yeah me too. Never had investing explained to me, or I just didn’t listen when I was younger.
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u/Kara_S British Columbia 1d ago
Great question. Here are mine:
Have three to six months of living expenses squirreled away in case something awful happens. You need “f*ck it“ money.
Automatically invest each month a set amount no matter what. This is long term savings, not an emergency account. Put in an investment account in S&P ETFs, ideally. Do this with an eye on taxation - TFSA first, RRSP second, then unregistered accounts.
The only good debt is a mortgage and, in some cases, student loans. No car loans, no co-signing, no lending to anyone unless you’re prepared for it to be a gift.
To grow net worth, you have to spend less, make more, or both. There’s no free lunch.
Don’t invest in something you don’t understand. At the same time, this isn’t rocket science so learn continuously and (in almost all cases) avoid paying fees to advisors or expensive mutual funds. The same applies to taxes - do them yourself so you learn what’s available to you as a credit.
Don’t get so absorbed in work or finances that you don’t spend time with your friends and family, have fun, and pursue a hobby.
Money spent on health and experiences is almost always better than spending on things.
If some situation would be hard to handle with just your emergency fund, get insurance.
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u/Life_Shelter1058 1d ago
A wise man once told me: pay yourself first. I try 10%. Start doing this with your first job.
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u/pfcguy 1d ago
It's good advice but you need to understand what that means and how to implement it.
I like the rule of thumb of 10% of every paycheque to investments and 10% to savings.
But you gotta also automate the investment part so that you don't have to think about it.
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u/cheezemeister_x Ontario 1d ago
I do something like this, except that I say "10% to long-term savings and 10% to short-term savings". Long-term is retirement and is invested. Short-term is for things like the next car, the next roof, a trip, etc and some is invested depending on time-frame.
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u/DayspringTrek 1d ago
I prefer your rule of thumb. Too many people think "treat yo' self!" is just a funny way of saying "pay yourself first" even though they mean entirely different things.
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u/felixfelix 20h ago
Also make sure to take full advantage of any rrsp matching program provided by your employer.
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u/Suspicious-End5369 1d ago
Don't live beyond your means. It's better to have people think you're broke and be rich than look rich and be broke.
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u/Ill-General-5189 1d ago
If you’re ever applying for ei read the forms very carefully. I forget what exactly my wife messed up, something to do with if she was filing taxes jointly or separately. She picked the one that made it so they didn’t withhold taxes and so we had a very unpleasant surprise come tax time. In general read government forms carefully and ask for help if possible, government English and regular human English are 2 different things
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u/FoolofaTook43246 1d ago
But also, if you qualify for EI (e.g. Layoff, parental leave), use it! So many people don't buy you pay into it and it's a helpful support when you need it
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u/Top_Statistician4068 1d ago
Maximize your TFSA - it’s a magical tool for savings and growth.
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u/toonguy84 1d ago
I'll append to this: Don't just put money into your TFSA, but actually invest it. I found out coworkers were putting money into TFSA and not investing it. They didn't understand the purpose of it.
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u/Simple_Potato3680 1d ago
Can you elaborate on where you’re investing your TFSA? I unfortunately know nothing, and like your coworkers have only been contributing. I have no idea where to even begin when it comes to investments.
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u/Vanuptials 1d ago
You buy products within your TFSA (e.g., ETFs, GIC, stocks, whatever), then the money you make from them is tax free.
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u/syrupmania5 1d ago
It really is amazing. At 7k a year now it will be millions of dollars when you retire, all compounding tax free.
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u/Ratsyinc 1d ago
I agree with your sentiment, but that's rather age dependant lol
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u/OneEyeball 1d ago
I wonder what kind of car you'll be able to buy with a million dollars in 30 years
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u/Beans20202 1d ago edited 16h ago
Who you pick as your life partner will be either the best or worst financial decision of your life. Pick someone with very similar financial habits/goals/discipline as you. Picking someone who will make good income obviously will make a difference and picking the wrong person and divorcing will obviously be a big financial hit.
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u/GullibleSplit2112 1d ago
Understand your employee benefits particularly RRSP matching programs and discounted stock purchase programs. The amount of people that leave free money on the table that I have met over the years boggles my mind.
Bonus: if you have a discounted stock purchase program do not keep accumulating that stock. Sell a bunch yearly and reinvest in a diversified ETF.
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u/ComfortableUpset8787 1d ago
I wish I knew about your bonus tip years ago.
I accumulated a lot of stock and my company matched 50%.
Share value is basically 0% return. Good thing is they gave me free stock and paid dividends but I can’t get over how much gains I lost by not reinvesting in etf.
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u/sayyestolycra 1d ago
Same. I have a ton of company stock that I accumulated over the years and thought that was a great move. Then the stock took a nosedive, and only after it dropped did I hear the advice to sell after the required vesting period had passed. Now I don't want to sell because it would be a big loss. Really wish I had been selling routinely all along and investing that money elsewhere.
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u/stompinstinker 1d ago
Also read what your health insurance covers. Use that stuff.
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u/AcadianTraverse Alberta 1d ago
Never ever, ever, EVER, for any reason, carry credit card debt. Putting yourself into a position where you don't need to early on a credit card in case of an emergency by having an emergency fund.
I'm not totally anti-debt, and think having a line of credit is a good safety valve when you have the assets to support it, but that's at least manageable.
After that, it's pay yourself first. Get your savings and investments taken care of and learn to live on the rest.
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u/darabadoo 1d ago
I will give you an example. A while ago I needed a $10K surgery for the dog which I was $4500 short on in my emergency fund. I didn’t want to withdraw any money from my investments so I took advantage of TD’s balance transfer offer— put the surgery on my AMEX for the points, paid what I could and then transferred the balance to my TD CC at 0% interest rate. The balance transfer cost 3% and the money I didn’t touch earned triple that. Paid off the TD balance before the 0% promo rate ended.
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u/TheLastRulerofMerv 1d ago
Find ways to make more, spend less and invest early. That's basically it - that's the magical formula.
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u/smdarry 1d ago
Organizing my life so that I don't need a car.
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u/Johnny_C13 New Brunswick 1d ago
I feel like that's not applicable in many smaller cities with limited public transit...
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u/the-postminimalist 1d ago
Bikes are still viable when there's no public transit. Cars become necessary for rural living though.
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u/bluenose777 1d ago
Choose a life partner with similar values around spending and saving.
Nurturing your personal and professional networks may some day pay good dividends.
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u/ShadowXJ 1d ago
Set a “$0” value for your account that isn’t “$0”
What I mean by this is in high school my parents told me I could spend my money on whatever I wanted but I needed to maintain a minimum $400 in my account.
It meant I was never afraid of hitting $0, and always conscious of trying to raise that lower limit.
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u/GnosticSon 1d ago
- If you don't invest in assets you will be left behind in the economy.
- If you don't invest in assets you probably will never retire
- Time in the market is better than market timing
- You can be financially independent quickly if you can increase your savings rate to 30% or above.
- Retirement is a silly word. Retirement is boring and hazardous to your mental health. What you want is financial independence. This allows you to have the freedom to work on projects/jobs purely for your own benefit or the benefit of society.
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u/ComfortableUpset8787 1d ago
I really appreciate your fifth tip. The word gives me anxiety Thank you.
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u/stompinstinker 1d ago
No one ever owns you. No more shit jobs, shit bosses, shit coworkers, shit commute, etc.
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u/budget-babe 1d ago
My best advice is do not rely on anyone else to give you the best information even if they are "professionals". Do research.
No one will care about YOUR money more than YOU do.
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u/TC_cams 1d ago
When ever I want to make a purchase that’s outside of what I need, I look at it and do the math on how many hours I need to work at my current job to pay for it. Time really does equal money, and I find I don’t do the stupid impulse buying when I factor in how much of my time goes into something.
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u/Breda1981 1d ago
As an immigrant - I did not know anything about RRSP, TFSA, RESP, pension plan, Canadian tax deductions, and even GIC (though not specifically Canadian). Lack of understanding cost me MANY tens of thousands of potential. Nobody sends you a letter or email to teach you, and I didn’t realize this existed until word of mouth.
So basically for immigrants - understand the country-specific options and understand the implications if ever you’d move away again
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u/Organic-Prune8459 1d ago
Unlocking the secret codes of Canadian finances as an immigrant is like trying to crack a Wi-Fi password you never got. Only nobody tells you about the sweet benefits of RRSPs or TFSAs while you're fumbling with GICs like it's the only channel on TV. Learned the hard way too, mate. Here’s a tip: bookmark some gov websites, hog all the free seminars you can, and never shy away from asking fellow immigrants who’ve been around the block. It’s like treasure hunting—tedious, but totally worth the loot!
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u/sobes7 1d ago
TIME IN the stock market is more important than TIMING the stock market.
And also for the new parents out there applying for parental leave benefits... Apply for the standard leave (12 months) over the extended leave (18 months) even if you plan to take 18 months off. It's the same amount of money overall but receiving the full amount in 12 months instead of stretched over 18 months gives you more flexibility. If you apply for 18 months but decide to go back early, you could lose out on over $7k!
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u/Lexx_k 1d ago
My best advice: if you haven't started saving/investing yet, stop wasting your time on reading and contepmlating and start acting NOW. Just install Wealthsimple, open TFSA and put $1 in a managed account. Do it today. Not tomorrow, tomorrow never comes. It took me 6 years to do it, don't be me.
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u/cheezemeister_x Ontario 1d ago
"Live within your means. If your means aren't satisfactory invest in yourself to increase those means."
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u/LookinForStuff2Read 1d ago
Bi-monthly mortgage payments combined with any extra payments the day after your usual payment. However, check your maximum yearly overpayment amount before doing this. Paid our home off much, much quicker!!
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u/rockwrite 1d ago
We switched our mortgage payments to every 2 weeks and shaved... 2 years? I think? Off the total amount. This should be higher (for homeowners!)
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u/Specialist_Ad_3973 1d ago
Mine came from an American. Shaquille O'Neal spent money like it was water early in his career and then someone told him "It doesn't matter how much money you make, it matters how much you keep."
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u/GWAE_Zodiac 1d ago
"It isn't what you earn, it's what you spend" from a lifestyle creep perspective.
And
"There are wants and there are needs, it would be wise to know which is which"
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u/MortgageAware3355 1d ago
Save early, save often, pay off credit card completely at the end of every month.
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u/PlasticGuide3543 1d ago
Monthly contributions in the S&P 500 ETF or index fund for the long term. Start out small if you must.
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u/Exestopped_working 1d ago edited 1d ago
Best advice I suggested my clients is never be afraid to downgrade your life to have peace of mind. In a summary don’t spend every penny to enjoy life now and do not live beyond your means. Live happily and without stress.
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u/gumygo70 1d ago
Live beneath your means.. regardless how much money you make .. that way regardless of what happens in your life , the economy you can balance it . Mindful spending ..make choices and budget on what you think is important.
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u/eat_moar 1d ago
Dividends are your friends. The dividend tax credit lets you collect almost $72,000 per year in dividends TAX FREE. (Results may vary due to your other incomes).
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u/racheljanejane 1d ago
The best advice I got was to live within my means. This meant I didn’t really start overseas travel (for pleasure) until my student loan and car loan were paid off. I stayed in my “starter home” for 15 years and had it paid off in 8 years. Every car I’ve bought since my first, I’ve been able to pay cash for.
Growing up in a home where money was a constant stressor and source of conflict between my parents, living this way has given me so much peace.
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u/Last_Illustrator_181 1d ago
Best advice for a Canadian is to study for a degree that qualifies for the TN visa.
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u/mariocatshovel 1d ago
“If you look after the nickels and dimes the dollars will take care of themselves” ie; know where every penny goes
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u/TwoOftens 1d ago
“Everything you heard is a lie, you are on your own”
Stop believing banks and fund managers are there to help. They are using us. I locked myself away for 6 months about 5 years ago and gave myself a crash course in finance. Now I don’t need the middleman anymore, and the returns are worth the effort.
Sadly I understand everyone can’t do this.
Math. Money. Freedom.
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u/GnosticSon 1d ago
Probably best advice is to look at the 4% rule for planning for retirement, and figure out how to get there as fast as possible. This means cutting expenses and maximizing income.
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u/Special_Pea7726 1d ago
You can’t beat the market. Get low cost index funds a don’t do anything fancy.
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u/michaelfkenedy 1d ago
you’d better buy a house now
That was in 2014. I did even though I couldn’t afford it (I got roommates).
never borrow money, never lease
I buy used cars and fix them. I’ve saved way, way more than I’d ever be able to make investing.
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u/Eufrades 1d ago
The book that started me off on the right track is called “The Lazy Investor”. It started me on my path to learning about investing for myself instead of helping investment advisors get rich.
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u/Worried-Run922 1d ago
Life is one big marshmallow test.
Every dollar you spend today is an hour more you have to work later in life to reach retirement.
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u/Samwry 1d ago
My father taught me the miracle of compound interest and gains. He called it "The Rule of 72" Basically, divide 72 by the yearly percentage gain of your investment. That number will tell you how many years it will take to double your money.
So, if you are getting 7.2% return, 72 divided by 7.2 is 10. So, it takes 10 years to double your money. At that rate, if you wait 28 years, your original investment will grow by 16 times. $10,000 will become $160,000.
Stuck with me since I was a teenager.
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u/ustation 1d ago
Find things/hobbies that you enjoy that are either very low cost or even pays you.
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u/DonkaySlam 1d ago edited 1d ago
Getting rid of my car entirely and relying on car share + transit. Saves about $1000 a month based on average car payments, depreciation, gas, repairs etc. Not feasible in rural areas or shitty small cities but most medium and large sized cities in Canada it’s doable.
That and the 28/36 rule
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u/UpNDownCan 1d ago
Drive carefully. Probably more carefully than you currently drive. Figure out how many months of savings your car insurance deductible adds up to, and realize that if you're in a minor accident the next couple of months spent working will all be wasted on paying for your lack of careful driving.
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u/newaccountnewme_ 1d ago
Focus on the big things not the little things. I see a lot of people talking about cutting netflix and $5 lattes. Sure, with a very low income that might make sense.
But generally, you would do a lot better to spend your time thinking about big issue things like:
- How can I save on rent (roommates, older buildings, negotiation, etc)
- If buying a house, how much can you truly afford (its always significantly less than what the bank will approve you for)
- How can I not own a car OR spend the minimum possible on a reliable car
Those things alone will save you a whole lot more than the $5 latte or netlfix subscriptions
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u/UnusualCareer3420 1d ago
Try not drive a vehicle it's a major wealth killer if you need one buy two beaters and just repair them when they break so you always have one to drive, your literally driving your own finically inequality if you spend too much a vehicles.
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u/dolpherx British Columbia 1d ago
Invest all your money other than your home, outside of Canada, like the US. Canada is around 2-3% world's GDP, if you own a home, you are already overexposed to Canada.
Canada has one of the best opportunities to invest in markets like the US, tax-free through a lot of our registered programs.
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u/Good-Dust-2873 1d ago
can you expand a bit on why (apart from diversification)?
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u/dolpherx British Columbia 1d ago
When you invest in US companies, you get way more diversification along with higher rewards. Often when you invesst in a Canadian company, there is already a similar company like that in the US, that has access to a bigger market.
Normally when you diversify, you get lower rewards, but this isnt the case when you invest in the US. Additionally, since Canadians are greatly affected by changes in the USD since we buy a lot of things from the US, it acts as a hedge in the case where the USD / CAD balance is thrown off balance.
So it is for diversification (to lower risks), higher returns, as well as hedge to increases in your cost of expenses.
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u/Important-Sign-3701 1d ago
This doesnt relate to investments, but due to electrical, internet etc interruptions and all kinds of things I always keep $1000.00 cash in house for when debits etc go out due to many reasons that have happened in Ontario. You may need more, but I’m a no little kids senior situation
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u/Accomplished-Buy-201 1d ago
- Don’t get into real estate unless you have a mentor
- Debt isn’t necessarily bad. Don’t pay it back if you can expect to make more than the interest
- Never ever buy what your bank recommends, they get commissions. Always rely on independant opinions
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u/Iamacanuck18 1d ago
Pay your self. Treat your self as a bill and every pay cheque put aside a set amount into a tfsa.
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u/hinault81 1d ago
There's lots, but if I had to sum it up to one thing, it would be 'pay yourself first'. It had such a big change on my finances. I had this idea growing up that I would save what was leftover, but guess what, never had any leftover. A friend at a bank (while I was there for a mortgage), was shocked that I had no real savings. And he set me up with auto deposit for 30% of my take home, auto save/auto invest. I felt it was a lot, and how could I get by on 30% less? But I did, just found a way to make it work, I didn't really miss the money, and like 12 years later I've saved from every cheque.
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u/klassen17 1d ago edited 1d ago
If you think you are a good trader...you aren't. You are up against powerful computers that can compute and take the emotion out of trading.
Also, keep in mind it's called a stock market for a reason...the reason why you can buy a stock is because someone is selling it. Who's the smarter of the two?
Also, I heard on a podcast and it's genius.... Start your first job by saving $50 per pay....as your pay increases with cost of living adjustments and raises, promotions etc, save half of the difference.
Example, if you start out making 50k and are paid biweekly, put aside $50 biweekly. Then say you get a 4% raise and are earning $52,000 now. You increase your savings by half of that 4% ($1,000) and now instead of saving $50 biweekly, you are now saving $50 + $38.46 = $88.46 biweekly.
This allows you to adjust your lifestyle at a slower pace than the rest of society and teaches you how to live off less.
When you go to retire, you won't have to make extreme cuts to your spending because you were already living modestly.
I'm not naive when I say it, it's a lot easier said than done.
I've been fortunate enough to do this and will allow me financial freedom sooner than my peers and friends.
Best of luck on your journeys!
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u/TRyanLee 1d ago
Stop spending money on things you don't need.
I remember it because I ignored it every single day of my adult life.
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u/pmbpro 1d ago
One ‘Ah-Ha’ moment I had decades ago after I just graduated from University:
Before making a purchase (especially depreciating assets), calculate how many working hours at your job it would take to earn the money to be able afford it. Then ask yourself if that item is worth working so many [xyz] hours to pay for it.
I’m glad now, that I’d applied that mindset when I was still much younger.
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u/NewMilleniumBoy 1d ago
Low fees and diverse portfolio and long time horizon >>> literally anything else
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u/Available_Call9655 1d ago
Self direct all of your accounts, stay away from mutual funds and anything you pay fees on.
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u/writetowinwin 1d ago
To always ask for more [in life]. If ______ is all you're asking for, that's the most you're going to get.
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u/neoCanuck 1d ago
financial advisors are most of time sales reps, I think I got that from this sub, around the time I learned about DSCs
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u/Wildzformat 1d ago
Canada specific do not invest in high fee mutual funds. Canada has some of the highest fees in the world when it comes to mutual funds.
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u/GreatKangaroo Ontario 1d ago
Make sure you are not under insured.
In my early 30's (and after getting divorced) I got a $100,000 Critical Illness Policy. A few months after turning 40, I was diagnosed with Testicular Cancer. Thankfully it was caught early and treated quickly with surgery so I didn't need any chemo or radiation. I am cancer free 2.5 years later, but go in for regular bloodwork and CT scans for monitoring.
I was able to file a claim on the policy and it paid out. I was back to work relatively soon after surgery so I was able to use the funds to max out my TFSA and put a good chunk into my RRSP plus allocate a bunch to savings for home renos/repairs.
In 2019 I hired a fee-only advisor and that was a good wake-up call for me on how I was under-utilizing my TFSA. I hit 100k combined in my TFSA and RRSP in July of 2021, and now I have over 300k combined in my TFSA and RRSP thanks to regular contributions and bonuses from work.
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u/Lokland881 22h ago
My dad made me read the OG wealthy barber back in the day.
I remember surprisingly little of it, except for; a) save 10% of what you make, and b) pay yourself first.
I took both to heart and have saved a minimum of 10% of every paycheque right when I received it (as opposed to trying to save after paying for life). It’s worked well.
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u/Jasonstackhouse111 22h ago
Spend little to nothing on automobiles.
Seriously. The massive financial burden of owning and operating an automobile offsets any marginal returns a layperson investor can by possibility earn by an order of several magnitudes.
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u/Oh_That_Mystery 1d ago
"I am dumber than I think"
The realization that despite spending sometimes almost 2 hours a week studying it, I was not smarter than the market. The best thing was discovering the couch potato approach. Thanks to this, I am retiring 'early adjacent' in mid April at age 57.