Yup it’s this time a year again, march 1st is around the corner and some of us are posting a last minute RRSP contributions for 2016. Stats are not great though, only 20% of Canadians will be doing so this year. Average debt per household is around 168% of yearly income, and I have heard but couldn’t verify data that 10% were at a ridiculously 450% high debt ratio. So you can forget about the Bank of Canada doing a strong tightening on interest rates any time soon…. 600 000 homes could go into foreclosure if this was the case.

The Following steps contributed greatly to my portfolio going from 10 000 $ in 2007 to 182 000$ (end of February 2017)

  1. If you do have an RRSP matching at work, please go for it!!!!! I had the chance to work for companies giving 6% & 4%. No one else can give you 100% from the get go. Cumulative return from doing this is astonishing.

  2. Once step 1 is done, it’s rare that you can max out your  18% of annual income allowance. So if you earn above 40 000$ a year put some money on your RRSP and invest your tax return in your TFSA.

  3. Don’t try to do budgets, sign up for automatic contributions with your bank. Otherwise before you know it, you will spend the money at cash guzzlers like Tim Hortons & Costco to name only 2. I know I have been there 🙂

  4. Repeat rule number 1,2,3 until it becomes second nature.

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