The Three Pillars of Wealth
- Conduct an expense audit to understand where your money is going.
- Use the free expense/income tracker to manage and meet monthly savings goals.
- Learn about forced savings to manage your money with maximum simplicity.
- 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.
- Understand low-cost Index Funds. They 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.
- Use the TFSA, RRSP and taxable account for my investments to maximize after-tax wealth. Use this calculator.
- Invest in your human capital by investing in your knowledge, skills and habits. This will enhance earnings power.
- Understand the difference between scalable and non-scalable income.
- Improve investment income from Pillar 2.
The Personal Finance Formula
Core Concepts & Values
A few core concepts and values are laced into the three pillars of wealth. Concepts apply across a variety of personal finance situations.
That’s great because personal finance is personal.