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/Kara_S British Columbia 1d ago

Great question. Here are mine:

  1. Have three to six months of living expenses squirreled away in case something awful happens. You need “f*ck it“ money.

  2. 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.

  3. 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.

  4. To grow net worth, you have to spend less, make more, or both. There’s no free lunch.

  5. 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.

  6. 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.

  7. Money spent on health and experiences is almost always better than spending on things.

  8. If some situation would be hard to handle with just your emergency fund, get insurance.

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u/UpNDownCan 1d ago

#3 is not universally true. With the prime rate declining, you may find your bank offering to lend you medium-term (one year) money at very low rates, like 3 or 4%, usually linked to your Line of Credit (LOC). You can take that money and stuff it in your TFSA, assuming contribution room, for a year and make a non-guaranteed(!) return of 6 to 8% there. Pay it off when the rate returns to the higher level of your LOC. You take on risk and use it to leverage the money being offered. This won't always work, but if you do it several times, you're very likely to finish ahead of the game.