There is a lot of information out there about investing, saving, and how to make it big time. Most of it is fleeting tips on the newest trend, hottest stock, or something or other that won’t have a lasting impact on your finances.
I’m in this for the long haul. I understand that making a million dollars in my lifetime will take years. So I’ve sorted through the books, magazine articles, and tips I’ve learned over the years and made myself a list of absolute basic Do’s and Don’ts.
DOs –
Rule #1 – I will pay Myself First – automatically every paycheck. This will be with the intention of maxing out my allowable RRSP contribution each year. Plus, the income tax you get back is the only nice thing, when nothing is more certain than death and taxes.
Rule #3 – I will make a long term plan. If you want to own a sail boat, give yourself a timeline, like within 5 years. Then calculate backwards how much you have to save every month to have enough in the bank.
DON’Ts –
Rule #1 – I won’t quit my job. No matter how much money I have in the bank, I still need to feel like I have a purpose to get up in the morning. I’m lucky to be productive and happy to work. Unless I am independently wealthy, I will continue to work.
Rule #2 – I won’t spend money that’s not in the bank. “But I’m getting promoted next month….and I could really use that boat now. I mean, summer will be over by then.” That kind of argument is only going to get me in trouble. I cannot spend money that I don’t have.
This list is not exhaustive – but a really solid guideline. I think I will be updating it frequently.
The First Million Is The Hardest 