Guest Blog Post: Boppy’s Rules of Money and Investing

Welcome back readers! (Yes, both of you.) I know it’s been a while, but life has been… well, life.

Today marks this site’s first ever guest blog, featuring the words of wisdom of my father-in-law, the one and only Boppy.

My father-in-law is a long-time investor. He has been retired now for many years. In his working days he was a teacher, but also a cautious investor and an inherently frugal man who above all else understands the value of a dollar. I always enjoy talking to him about money and investing (among other things) and the teacher in him is always happy to offer advice to those who seek it. Between his teacher’s pension and his assets from a lifetime of investing, he now spends his days doing things he loves, which mostly involves spending time with his grandchildren and enjoying his summers at the cottage. And of course, another thing that he enjoys doing is keeping an eye on the market and his investments.

When Boppy found out I had this little corner of the internet, he was intrigued. He revealed to me that he always wanted the opportunity to share some of the wisdom that he has accumulated over the years with future generations, starting with his grandkids. So I told him I would happily offer him some space on this site to share some of that wisdom. Sure enough, Boppy has come through with his first contribution.

So to my nieces and nephews (and my own children, assuming you are reading this in the future once you have learned to read), mark this page as a bookmark, a favourite, a Pin, or what have you. Without further ado, I give you the words of Boppy.

Boppy’s Rules of Money and Investing

1. If you take care of the pennies, the dollars will take care of themselves.
2. No one looks after your money better than you.
3. A dollar saved is equal to two dollars that you earn. Why?
4. It’s not how much you make, but what you do with what you make.
5. Never allow debts to increase. Pay all bills and credit cards when they are due.
6. Don’t put your money in banks, but buy the shares of banks (preferably in a DRIP plan).
7. Put your money in a true credit union. I have always been a member of at least two different credit unions so I could play one against the other for the best rates. Remember you are doing them a favour when you lend them your money.
8. Avoid spending money on depreciating assets. Invest in appreciating assets. Name a few of each.
9. Understand the difference between needs and wants. People that make a lot of money but have little savings spend their money on wants which are depreciating assets.
10. Save a given percentage (10% or more) from every pay cheque. Put it in an account that gets the highest rate possible.
11. Save for important purchases and avoid borrowing money and paying interest. Buying a house is one exception.
12. As soon as you start becoming taxable, open TFSA accounts and contribute as much money as you are able to avoid paying tax.
13. Use RSPs to reduce taxes, but do not contribute more than about $100,000 in your lifetime if you also have a pension. You will still have to pay tax on this money when you withdraw it, and you could put yourself above the threshold for Old Age Security benefits.
14. When saving for your children’s education, do it through yearly contributions to RESP accounts. Familiarize yourself with the different kinds available and benefit from the yearly government contribution.

There are other specific things that require planning and strategies like; buying a used car, selecting and using a credit card, and stock trading rules. You can always ask Boppy.