The Three Pillars of Wealth
- Learn about forced savings to manage your money with maximum simplicity.
- Conduct an expense audit to understand where your money is going.
- Shelter, Transport and Food account for over 50% of US and Canadian spending. Spend efforts here.
- Evaluate renting versus owning shelter – the largest financial decision most make.
- Learn about the Debt Avalanche – The Quickest Way to Pay Down Debt, according to math.
- Understand low-cost Index Funds. They will statistically outperform stock selection and professional mutual fund managers.
- Understand the difference between decisions and outcomes.
- Learn about human biases and risk to ensure your investments match your unique risk tolerance.
- Learn about How the Tax-Free Savings Account (TFSA) Works so you can generate tax-free investment income.
- Should I use the TFSA, RRSP, or taxable account for my investments? Use this calculator to better understand how the accounts affect after-tax wealth.
- Invest in your knowledge, skills and habits to improve your ability to solve problems.
- Understand the difference between scalable and non-scalable income.
- Improve investment income from Pillar 2.
- Understand the progressive tax system and how taxes apply to investment income.
- Develop a “Side Hustle” to diversify and increase income streams.
The Personal Finance Formula
Core Concepts & Values
A few core concepts and values are laced into the three pillars of wealth. I love concepts because they apply across a variety of personal finance situations.
That’s great, because personal finance is personal. As you can see, personal finance is deeper than money.
Here are some resources: