Personal Finance

Share some Pro-tips on how to build wealth

  • Last Updated:
  • Dec 12th, 2018 10:32 am
[OP]
Deal Expert
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Apr 21, 2004
46795 posts
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Share some Pro-tips on how to build wealth

Mine are by no way professional tips but more like bold speculation plays except for the last one lol.

  1. Get a Power of Attorney over your parents' accounts and make use of their saving (TFSA) and borrowing capacities if they aren't fully utilizing them, for one reason or another. Of course you don't want to screw up their contribution limits by losing so much on spec plays or credit files by not paying debt on time.
  2. Use of margin accounts during rising markets, which sadly isn't the case right now.
  3. Taking mortgages from A Lenders who can't see your other mortgages to start land banking. Not really sure if some mortgages are still not being reported to FI's. Also works better during rising r/e markets, which isn't a case today (r/e currently more neutral).
  4. Instead of leasing one's dream cars every three or four years, think of the Rule of 72 which gives the number of years to double your money given a certain return -- 72/(rate of return).
Last edited by alanbrenton on Dec 5th, 2018 12:54 pm, edited 2 times in total.
41 replies
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Mar 9, 2012
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Kitchener
Pro-tips:

Spend less.

1) Make coffee at home
2) Eat out less
3) Reduce, or get rid of, cable/satellite package
4) Buy less expensive cars, cars with good insurance ratings, good fuel economy -- nothing wrong with a good quality used car
5) Give yourself 24 hours before buying an item you want -- usually within 24 hours you'll see that it's just another thing you don't need
6) Make additional payments on mortgage - when the time comes up for renewal, you may be able to afford to knock off an additional 5 years.
7) Pay off all credit cards monthly
8) Pay yourself first -- that is, put money into an RRSP or TFSA or both, monthly
9) Limit gift buying

just to name a few
Well, I am not a crook.
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Aug 18, 2005
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GTA West
Always get the extended warranty, so you aren't caught out with unforeseen expenses.

Procure a new Boss suit each season so you can be seen as being a serious top candidate for workplace promotions. Write it off as a business expense.

Buy lunch every day. Your time will yield more dividends if you spend the cooking time doing technical analysis for your day trading.

Buy separate iPhones for personal and business so you can maximize those write-offs!

Buy a German Shepherd dog on installments, to use as a guard dog for your rental properties, so you can write off the payments on your taxes, and then use the dog as an accessory to meet a Sugar Mamma / Daddy in the dog park.

And most importantly... Spend lots of time in the RFD hot deals forum! Never miss a chance to save money by buying the new, hottest deal!

🤣
Last edited by Jucius Maximus on Dec 6th, 2018 7:22 am, edited 4 times in total.
Tuition to the School of Life is not tax deductible.
Deal Fanatic
Dec 11, 2008
8879 posts
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#1 is spend less than what you make and invest it properly and not gamble
Deal Fanatic
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Jun 26, 2005
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Toronto
It depends how much wealth you have already.

Low:
- get more jobs, Uber, etc
- use coupons when shopping
- marry a wealthier spouse
- have less kids
- never eat out
- make your own gifts, no buying
- invest as wisely as possible

Medium:
- get into Real estate in GTA
- save and invest for downpayment
- eat out less, cook in more
- invest in stocks

High:
- get MORE properties
- buy things that appreciate in value (high end time pieces, wine, paintings)
[OP]
Deal Expert
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Apr 21, 2004
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Jucius Maximus wrote:
Dec 5th, 2018 10:06 am
Always get the extended warranty, so you aren't caught out with unforeseen expenses.

Procure a new Boss suit each season so you can be seen as being a serious top candidate for workplace promotions. Write it off as a business expense.

Buy lunch every day. Your time will yield more dividends if you spend the cooking time doing technical analysis for your day trading.

Buy separate iPhones for personal and business so you can maximize those write-offs!

Buy a German Shepherd dog on installments, to use as a guard dog for your rental properties, so you can write off the payments on your taxes, and then use the dog as an accessory to meet a Sugar Mamma / Daddy in the dog park.

🤣
Actually, if the longest vehicle extended factory warranty (7/8 years) is $3k or below, I think it would be a good enough insurance when buying used cars. Still less expensive than buying a new car or leasing every 3 or 4 years.
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Nov 25, 2014
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rfdrfd wrote:
Dec 5th, 2018 11:41 am
- marry a wealthier spouse
- have less kids
Instructions unclear - murdered family.
You need someone with an umbrella not a fork
Sr. Member
Jul 21, 2009
586 posts
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Toronto
- Automate your savings so you don't need to think about it.
- Avoid debt or pay it off ASAP
- Try to spend 40%+ of your income into assets. (mortgage, investments, savings, education)
- Work hard and earn more
- Be patient and continue this for your working career
- Spend the rest of your money guilt free (yes to starbucks, leasing cars and vacations) so you can enjoy your life.
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Jul 27, 2017
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speedyforme wrote:
Dec 5th, 2018 10:14 am
#1 is spend less than what you make and invest it properly and not gamble
title of the OP, so many opinions

its all about money isn't it?

using a net income of 100% from all sources, minus expenses of 50% = 50% cash flow, bank or save that, then in 10 years you have a safety net of 10 years

where is everyone at ... think about it & there is no need to post your number?

we are less than 30% expenses to net income
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Nov 15, 2005
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1. Go on deals site like RFD to get bargains on things you need
2. Resist buying stuff from bargain sites like RFD that you don't need
3. Buy good quality used items when you can
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Dec 11, 2008
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porticoman wrote:
Dec 5th, 2018 1:08 pm
title of the OP, so many opinions

its all about money isn't it?

using a net income of 100% from all sources, minus expenses of 50% = 50% cash flow, bank or save that, then in 10 years you have a safety net of 10 years

where is everyone at ... think about it & there is no need to post your number?

we are less than 30% expenses to net income
Yeah. I guess once the mortgage is gone, we will be around 30% as well net income.
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Jul 27, 2017
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speedyforme wrote:
Dec 5th, 2018 1:30 pm
Yeah. I guess once the mortgage is gone, we will be around 30% as well net income.
then when you pull the plug (quit your day jobs) to retire at say 56, what will the expenses to income be?

that is what retirement is all about

escape the rate race (even if you still live in the big metropolis) living frugal, modestly, above average or rich ...

not going to a day job, not answerable to anyone, time doesn't matter & having enough income to pay all the bills & to do whatever with some left over - at least 50% ... life can be good one day, one month or one-year at a time
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Dec 11, 2008
8879 posts
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porticoman wrote:
Dec 5th, 2018 1:50 pm
then when you pull the plug (quit your day jobs) to retire at say 56, what will the expenses to income be?

that is what retirement is all about

escape the rate race (even if you still live in the big metropolis) living frugal, modestly, above average or rich ...

not going to a day job, not answerable to anyone, time doesn't matter & having enough income to pay all the bills & to do whatever with some left over - at least 50% ... life can be good one day, one month or one-year at a time
Very good call on that, I have to rerun some numbers to see what the difference is from our planned expenditures to our income when retired.
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Nov 15, 2016
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1. Potentially Riskier side of investing, but can also build wealth if done right - The Smith Manuever. Basically it's efficient strategy to use equity in your home to invest for your future without using your cash flow. It converts your mortgage over time into a tax deductible investment credit line.
Link for further reading--- How to turn your house HELOC into a Smith Manuever investment

I am still researching into this, it was brought to my attention listening to the Canadian Couch investing podcasts.

2. Reduce your MER fees. Save money by actively managing your own investments. Don't pay banks enormous MER Fees to manage a portfolio when you can re-balance and adjust your own ETF/stocks etc. yourself. Crunch the 1-1.5% MERs down to 0.10% and work on your own finances.

3. Budget and save, analyze your expenses and start a saving strategy. I've been fortunate enough to save 70% of my take home pay (thanks parents). These same rules can apply to any situation as well, just start saving small!

4. Switch to online banks such as Tangerine. Don't have to pay $10-25/month for a brick and mortar, go online and pay nothing to access your bank accounts. $120-250 year saved

5. Maxed out your CPP/EI or received a Bonus? Put that away ASAP. Dump into your rainy day fund or forget about it. Normalize your income and anything extra is icing on the cake to pay down debts/mortgage/expenses etc.

6. Shop around for both Home and Car insurance, Find the best rates by using brokers or even your University Alumni insurance companies (TD Melonche is one that partners with Unis)

7. Take on a few side jobs to increase your income, than invest wisely

8.. The most important -- invest in yourself. Learn new skills (programming, business coaching, mentoring) anything that can be used to increase your salary and work positions for the better. There is no better investment than hardwork and dedication to bettering one's self.
Last edited by Toad99 on Dec 5th, 2018 5:17 pm, edited 2 times in total.
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Nov 10, 2018
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Cut your expenses as much as possible, live a sad and bare bones life, but you'll be wealthy, eventually.

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