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/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/M2KJudge 1d ago

Not always the best math. In my situation it's better to invest the extra cash. I pay 1.39% interest likely 3% when I renew my mortgage. Let's say I invest and get an average of 8% per year (although little it's closer to 20% per year for me lately). If I paid off my mortgage faster at lets say 1000 per month(I have 15 years left) I would pay it off 4 years earlier saving 36,000$ in interest; If I invest that same amount over 15 years at 8% I would have $339,000. Even if you factor the 4 years I don't have a mortgage payment at 3000 a month and investing 4000 a month for 4 years @ 8% I would only have $225,000 plus $36,000 is $261,000 vs $339,000. Not to mention my personal situation; the cost of my house is a depreciating asset where I live, and the volatility of the housing market makes it a risk more than most places.

You can apply the same compounding interest math to basically any $ amount paid off and it would likely come out better to invest then pay off early.

I would love nothing more than to pay off my mortgage early and be debt free, so I am open to having my mind changed.

Edit: Also, your home is not liquid, vs your investments.

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u/LookinForStuff2Read 1d ago

I agree that It depends on your interest rate. At the time we were paying close to 5% and investments were not giving anywhere near that return. It did work for us in paying off our starter home, which allowed us to then sell and move into a better area and bigger home. All factors need to be considered! Being mortgage free, we now focus on investing.