Personal Finance

Share some Pro-tips on how to build wealth

  • Last Updated:
  • Dec 11th, 2018 10:19 pm
Deal Addict
Oct 1, 2006
1833 posts
864 upvotes
Montreal
1) Spend less than you earn
2) Invest your savings in a low cost diversified portfolio consisting of bonds and equities
3) Stick to the plan no matter what.
Deal Fanatic
Feb 1, 2006
9464 posts
588 upvotes
Muskoka
Best tip is - learn to love the free/low cost things in life. We mostly retired at 41 by having a massive savings rate (50%+), but also a great quality of life. We have dinner parties regularly, group hikes, skis, and beach days. We don't feel we are lacking anything in life because we skip Starbucks, leased cars, expensive dinners and drinks, cruise vacations, etc.

Even better tip - don't live anywhere where the mortgage can't be paid off in 15-20 years fairly easily. You will always be running behind.
Deal Fanatic
Aug 14, 2007
9135 posts
926 upvotes
Toronto
Some of the advice coming up sounds like some people literally never spend a dollar if they don’t have to.

I save as much as I possibly can and splurge a bit here and there. Life isn’t just about seeing how much money you have by the time you retire or die.

Have fun with life.

But I do agree with most. That 24 hour tip is actually a really good one and I just did that same thing, in the end I did not buy what I wanted. I took the $ instead and invested it.
Member
Mar 22, 2017
237 posts
178 upvotes
angryaudifanatic wrote:
Dec 5th, 2018 5:15 pm
Cut your expenses as much as possible, live a sad and bare bones life, but you'll be wealthy, eventually.
Found the young immature entitled millennial
Deal Addict
Dec 16, 2001
1536 posts
519 upvotes
Toronto
RFD is all about saving the ¢, instead of making the $s.

There's a difference between building wealth than the often regurgitated personal finance advice to save money, that the media and everyone else like to spout. Saving money does not equal building wealth.

The below commom advice saves money, but it doesn't move the needle on building wealth:
- Bring your own lunch/Eat out less/making your own coffee
- If it's brown flush it down, if it's yellow let it mellow
- Putting unused funds in savings and GIC deposit accounts
- Paying down your mortgage when interest rates are low
- Doing your own car maintenance

OP has very innovative thinking to leverage idle money/unused contribution room. Props to OP.
Deal Addict
Jul 27, 2017
1788 posts
642 upvotes
GTA
Kursor17 wrote:
Dec 7th, 2018 2:30 pm
RFD is all about saving the ¢, instead of making the $s.

There's a difference between building wealth than the often regurgitated personal finance advice to save money, that the media and everyone else like to spout. Saving money does not equal building wealth.

OP has very innovative thinking to leverage idle money/unused contribution room. Props to OP.
related to the OP

see post #16 above

other than 'beg, steal, borrow, OPM or start your own Ponzi scheme' how do you build wealth if you don't have surplus cash from either savings or cash-flow to begin with?

if you'd care to share any of your own specific 'tips or ideas' ?

thanks
Deal Expert
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Jan 27, 2004
39390 posts
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T.O. Lotto Captain
Automatic savings/investment plan.

Im by no means wealthy. I’m firmly average ok even below average. But i invest diligently. People in this situation would benefit greatly from continued and persistent contributions. They compound over time, and regular contributions allow you to take advantage of dollar cost Averaging.

You can also do so to fit your budget. Like $100 every biweekly paycheck. You won’t notice it gone if its debited the same day as your pay check. & it adds up over time!
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Jun 26, 2005
8851 posts
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Toronto
angryaudifanatic wrote:
Dec 5th, 2018 5:15 pm
Cut your expenses as much as possible, live a sad and bare bones life, but you'll be wealthy, eventually.
This is what I did when growing up. I never had a budget, because I did everything bare bones. Didn't go buy game systems like my friends, just go play at their house. No big fancy laptops, etc. Saved and bought GICs (inteeat was higher back then ) and worked part-time jobs after school. Did tons of overtime, $$$$

Lived with parents even after marriage. Was respectful and nice to my parents, helped do all the house chores, paid utility bills.

Was able to buy our first condo with my wife with no mortgage. That set us up really good for the future.
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Jun 26, 2005
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porticoman wrote:
Dec 7th, 2018 8:40 pm
related to the OP

see post #16 above

other than 'beg, steal, borrow, OPM or start your own Ponzi scheme' how do you build wealth if you don't have surplus cash from either savings or cash-flow to begin with?

if you'd care to share any of your own specific 'tips or ideas' ?

thanks
One needs cash to make cash. If you don't then it's extremely difficult. As all your money is already spent on staying alive. Eat, living, children, transportation.

It depends on how poor you are. If it's hard to make ends meet, and you have zero help anywhere, then I'll say the horrible thing here is, don't have children. (If you don't already). No I'm not automatically saying only the rich should have kids, but having kids is extremely expensive. And if I'm already living in a poor house, I wouldn't want to pass that onto my kids too. For them to dig out of my hole is not easy.

I don't feel having kids is a right. It's like if i cannot afford the fee to vets , dog food, etc. Then don't get a dog!

As a responsible adult, I feel before I get someone pregnant to have kids, first I have to assess if we can afford to. If not, don't. It's irresponsible. If you love kids then become a ECE, nanny etc. You'd be around them everyday. Probably get so tired from teaching GR 2 that you'd be glad you come home to no kids

So while it seems like I didn't answer your question, it actually is, as I'm saying don't add a huge expense to yourselves.

Everytime I hear a horror story like a Dad is killed in a car accident, leaving a wife with 3 kids and mom doesn't work and are "poor". I think why that Dad didn't plan properly, why have so many kids, while they aren't wealthy ? I blame the Dad for being irresponsible.

If you already have kids and can't really make ends meet, then get more jobs, earn more cash then invest that.

Also I would then teach your kids the above theory. Only have kids if you can afford to.

Some people may hate what I'm saying, that's what I feel. I never will leave my wife and kids without the financial support system. That's my job as a provider.

Thanks for reading this far , here's a reward,

Join Leger survey, they email you surveys that's worth $0.50 to $4 each. When you reach $20 you can cash out. I've gotten $220 so far. I kid you not. I'm eating a $11 Hero burger right now , free, used my $20 from Leger survey. And I just did 2 surveys while eating! $2 total earned.

PM me if you have questions.
Last edited by rfdrfd on Dec 8th, 2018 1:31 pm, edited 1 time in total.
[OP]
Deal Expert
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Apr 21, 2004
46681 posts
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rfdrfd wrote:
Dec 8th, 2018 11:00 am
This is what I did when growing up. I never had a budget, because I did everything bare bones. Didn't go buy game systems like my friends, just go play at their house. No big fancy laptops, etc. Saved and bought GICs (inteeat was higher back then ) and worked part-time jobs after school. Did tons of overtime, $$$$

Lived with parents even after marriage. Was respectful and nice to my parents, helped do all the house chores, paid utility bills.

Was able to buy our first condo with my wife with no mortgage. That set us up really good for the future.
You married right? ;)
[OP]
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Apr 21, 2004
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rfdrfd wrote:
Dec 8th, 2018 1:32 pm
You proposing?
Read the flow of information you posted and what the juncture point of your financial success is. Marrying the right person seems the big ticket for some people.

As for me, I married right but never considered trying to hit the jackpot lol.
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Jun 26, 2005
8851 posts
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Toronto
alanbrenton wrote:
Dec 8th, 2018 2:10 pm
Read the flow of information you posted and what the juncture point of your financial success is. Marrying the right person seems the big ticket for some people.

As for me, I married right but never considered trying to hit the jackpot lol.
LOL yes I know what you mean. Yes, "love" should be the first priority for marriage, but you can't tell me one cannot find a "wealthy" individual that one may also fall in love with right?

For me, yes I'm married and my wife actually makes a little bit more than I do. I'm catching up, but she still has a higher paycheck. I ain't complaining!

So yes, if I was to give advice, also take into account the other person's wealth/paycheck. Try to meet "rich" singles, or out of a group of single friends, see who has the most money and then think "hmm... she/he ain't so bad, pretty nice gal/guy, let's try and date".

My wife has a friend, who married a Tawainese guy, he's wealthy. For valentines day, he had to fly back to Taiwan for some business, so as a gift, gave her $50,000. I kid you not. She happily paid off her OSAP.
Last edited by rfdrfd on Dec 10th, 2018 10:25 am, edited 1 time in total.
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Jun 26, 2005
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porticoman wrote:
Dec 8th, 2018 2:48 pm
@rfdrfd post #24

thanks for sharing.

I did a quick google & in fact its a good way to start from zero

https://www.surveypolice.com/countries/canada
Neat website! Thanks. Yes, I highly encourage everyone to do these surveys. Don't just surf the web, instagram, FB, for free, do something that will earn you $$$

I'm $4 away from getting to $20 again in my Leger web survey. Then I can buy those dumb Lego toys that's not worth $30 for the kids!

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