I was an advertising writer/creative, so I have this propensity to distill more complex ideas into a 30-second movie, or a 6 word headline. We had to cut to the chase, and decide what was really important – what is the main message? An ad started with a briefing document. The most important section was the ‘single minded proposition’. I have just read the latest Wealthy Barber book. The single-minded proposition has not changed. Save and invest 10-15% of your income. Six words, one number. Do that over 30 to 35 years and you’re likely to live very, very well.
Of course, there’s more to it, there always is, but not much really. As I have offered for a very, very long time building wealth is super easy. We should all reach our form or level of “rich”. Or to simplify – we should all get rich. Honestly.
Pay yourself first
The Wealthy Barber books have inspired millions of Canadians to ‘pay themselves first’. That’s the actionable part that allows you to save 10% to 15% of your income. Your pay cheque comes in, you move out 15% to your investment portfolio. That might even happen automatically with an automatic savings plan. The money is moved electronically before you can get your grubby shop-til-you-drop hands on it.
No purse (that you didn’t really need) for you, that $300 is now on its way to iShares XGRO one of the wonderful asset allocation ETF investment portfolios. The beauty of those asset allocation portfolios is that you don’t have to know what you’re doing with respect to investing. In fact, the more clueless the better in most cases. You’ll just have to understand that you’re buying/owning a massive bunch very successful companies in Canada, the U.S. and around the world.
You’re gonna buy on a regular schedule, not worry about any stock market news (gloom or euphoria), and you’re gonna get out of your own way. You’ll likely create a chart that looks like this …
That’s a global portfolio with a $650 monthly investment. It earned an average of 8.0% every year.
Congratulations! Easy eh? Well ya, it is.
And if you don’t have $650 every month, no problem. Start with any amount. You can make up for it later when your salary increases and when you do continued work to get your personal or family budget in tip top shape. You’ll continually live beneath your means, allowing for a decent savings rate.
The Wealthy Barber key themes
Here are the key considerations, actionable messages:
- Save 10% to 15% of your income
- Invest that money to take advantage of ‘compounding’
- Buy the stock markets, buy the haystacks for better returns and low fees
- Keep investing on a regular schedule. Ignore any market news and guesswork
- Invest in the RRSP (container) first. Second best is the TFSA, but the RRSP will usually win as it reduces taxable income
- Run an RRSP vs TFSA calculator (my add)
- Take all free money from your Group RRSP plans at work. Even if it has high fees the free money will usually compensate for that
- Buy a home you can truly afford, that still allows you to save. Consider putting down 20%
- Understand and use the Home Buyer’s Plan and the First Home Savings Plan
- Don’t scoff at living with your parents
- Earn extra income if need be, perhaps in the gig economy
- There’s nothing wrong with renting
- The little things add up, do a budget, find places to cut back
- Consider wills, proper insurance and estate planning
Of course, the book is going to provide more details and demonstrations. And it’s all wrapped in some friendly storytelling. The Wealthy Barber books are must-reads for younger Canadians or anyone getting started on their wealth building journey.
For more on buying the stock markets of the world check out – What is index investing? and What is an ETF?
For retirees, I recently cut to the chase with this post – The simple strategies that set you up for retirement success.
Wealth building questions?
Feel free to reach out, use that Contact Dale form at the top of this page. I’m happy to help, no charge. I enjoy helping investors get rich slowly. You may also be looking to ditch your high-fee mutual funds, that too is a special joy. Use that contact form.
More Sunday Reads
At Findependence Hub is the 4% rule still relevant for today’s retirees?
Booming Encore founder Susan Williams on Turning 62: Things I know for sure and things I’m still learning.
I have a full year of experience at age 62, I moved onto 63 last year, but can’t believe that I can write that number. It used to sound old.
Dan at Stocktrades takes a look at a Canadian dividend darling that is down 40%.
We check out the portfolio week in review for Dividend Hawk. We both hold Manulife and Powercorp …
- Manulife Financial Corporation (MFC) Reports Third Quarter 2025 Results; MFC reported core earnings of C$1.16 per share for Q3 2025, a 16% increase from C$1.00 in the same period last year and above the consensus estimate of C$1.04. Global Wealth and Asset Management net outflows of C$6.2 billion, compared with net inflows of C$5.2 billion in Q3 2024. Book value per common share rose to C$26.07 as of September 30, 2025, compared to C$24.40 a year earlier.
- Power Corporation of Canada (TSE:POW)Reports Third Quarter 2025 Financial Results; POW reported adjusted earnings of C$1.35 per share for the quarter ended September 30, up from C$1.07 in the same period last year and beating the analyst consensus of C$1.34. The Corporation’s book value per participating share was $36.74 at September 30, 2025, compared with $35.56 at December 31, 2024, an increase of 3.3%.
For those who build a stock portfolio, we can buy enough of the Canadian financials to replicate the index, or we can pay the MER and own XFN-T.
You can buy all of the banks or look to ZEB-T.
I shared this Tweet on the Canadian banks, performance during the dot com crash.
Kyle at Million Dollar Journey also takes a look at the new Wealthy Barber.
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Earn a break on fees by way of many of these partnership links.
Here’s Canada’s top-performing Robo Advisor, Justwealth. You can get advice, planning and low-fee ETF portfolios all at one shop. Canadians can have it all.
Consider Justwealth for RESP accounts. That is THE option in Canada with target date funds that adjust the risk level as the student approaches the College or University start date.
OUR SAVINGS ACCOUNTS
Make your cash work a lot harder at EQ Bank. RRSP and TFSA account rates are at 1.75%, other savings rates up to 3.0%. You’ll find some higher rates on GICs up to 3.60%. They also offer U.S. dollar accounts at 3.0%. We use EQ Bank, they have been awesome.
OUR CASHBACK CREDIT CARD
We make between $40 to $70 every month! And that’s on everyday spending. There are no fees with …
The Tangerine Cash Back Credit Card
For October we received $43.41 in cash from everyday spending. You can select 3 categories for 2.0% cash back. Remaining categories pay up at 0.50%.
That cash went into my TFSA account to help buy some CBIL-T, CHPS-T and HURA-T.
Join us at Retirement Club today
Do retirement right. … a series of monthly Zoom Presentations, newsletters, plus a secure and private online space where we learn, share ideas and connect with members. Here’s the Retirement Club overview page. New members are signing up now. You’ll join Retirement Club Group Two for the last two Zoom presentations of 2025, and then carry on with the full Group Three in January of 2026.
Make sure you’re doing retirement right. It’s also suitable for those who are approaching retirement. Use Contact Dale if you’d like more info, or to sign up.
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