On a sunny Sunday morning, nestled near the beach during a family vacation, my father threw me a curveball. "Do you know the difference between wealth and income?" he asked, stirring the calm with a question that would echo through my financial journey.

I, with the naivety of youth, retorted, "Umm, I think income is the money you make at work, and wealth is what you inherit," trying to mask my irritation with the impending adult conversation.

My father, with a knowing smile, corrected me: "Not really. Wealth is what you build with the income you earn. It’s about using the money you have to make more of it."

That lesson didn't sink in immediately. It wasn't until years later, post-grad school, swimming in student loan debt, and barely scraping by in Toronto, that his words hit home. My income was just a drop in the ocean against the rising tide of expenses.

Here's the hard truth: Earning more or saving a little each month isn't the silver bullet for financial freedom. Building wealth is the game. It's about making your money work as hard as you do, if not harder.

The Journey - Watercolour by Jacoline Loewen

The Road to Wealth:

Budgeting Like a Pro: I embraced the 50/30/20 rule. Half my income for necessities, 30% for the joys of life, and 20% for my future self. It's not about cutting out fun but about smart allocation.

The Emergency Fund: Aiming for an emergency fund that totaled the amount of one year’s pay was the goal. It took longer than anticipated to save my annual income in liquid cash for those unforeseen storms. It was my first piece of my financial plan and it was tough, but the peace of mind it brings? Priceless.
Retirement Isn't Just for the Old: I started a retirement fund, understanding that the magic of compounding interest could outpace my savings account by leaps and bounds. It's a long game, but one worth playing. I started in my twenties and am grateful that I did.
Diversify, Don't Just Save: I learned the hard way that bank savings lose to inflation. Even GICs do not keep up with inflation. So, I've ventured into funds, stocks, bonds—diversifying my investments to spread the risk and aim for greater returns.

These steps are part of my ongoing education and are available for all to learn.

For Those on the Path:

Books Like "Rich Dad Poor Dad" by Robert Kiyosaki - A classic that challenges conventional wisdom on money.

The Automatic Millionaire by David Bach - Simplifies how to make wealth building almost automatic.
Your Money or Your Life by Vicki Robin and Joe Dominguez - A transformative look at how we spend our life energy.

Wealth isn't an inheritance; it's an inheritance of knowledge, discipline, and strategic action from your income. It's about turning every dollar into a soldier in your army of financial freedom.

So, let's not just live from paycheck to paycheck; let's create a legacy of wealth, understanding that it's not about how much you earn but how you use what you've got.

Join me in this journey of turning income into wealth, one smart decision at a time. Be in touch!