I was fortunate enough to receive an advance copy of Robert Brown’s new book, Wealthing Like Rabbits.
In case you haven’t heard of it, the book offers a unique perspective on personal finance and is easy to read. Unlike many other personal finance books, this one is actually funny and entertaining.
If you are hesitant to buy a personal finance book because of all the numbers, formulas and complicated jargon that most other books have – definitely consider checking out this book.
Here are some highlights of the book….
Rabbits, Zombies & RRSPs
Robert’s book brings up some interesting points in the TFSA vs. RRSP debate. Most people believe that those in a lower income bracket are better off putting their money into a TFSA. The logic is that with a lower income comes a lower tax bracket, and less tax savings for the deductible RRSP contributions.
Related: Hidden Advantages of the TFSA
Robert argues that a TFSA may not be the best way to go for those in a lower income bracket. He argues that for students or those just starting out in the workforce, an RRSP contribution might make more sense:
- Young people with a lower income who make RRSP contributions get the tax break they need now, rather than waiting for it later on in life
- The refund generated by an RRSP contribution can be used to buy a vehicle, purchase a home or pay off high interest debt
- Sure, they’ll pay taxes on the money when it’s withdrawn later on in life, but it won’t be needed like it is when someone is just starting out in the workforce
“Would you rather get a $1,000 windfall at age 27 when you are trying to scrape together a down payment for a house or a $1,300 windfall at age 70 when you have close to $1 million in savings?”
Lessons in Savings from the Toronto Maple Leafs
Wealthing Like Rabbits discusses how some people’s saving habits are similar to the Toronto Maple Leafs.
All too often, the Leafs disappoint their fans and either don’t make the playoffs or get eliminated early. It happens every year and it has become (somewhat) predictable. They end the season with a promise to their fans to improve the following year.
This situation is similar to how some people save money for their RRSP. Every year when people file their tax returns they swear next year they will put more money in their RRSP. And all too often, it’s the same result the following year.
Whether you’re a hockey fan or not, the book uses comparisons like this to entertain the readers and make personal finance more fun.
Wealthing Like Rabbits is full of gems, here are a few of my favorites:
On mortgages: “Asking a bank how much you are ‘allowed’ to spend on a home is a bit like asking Ronald McDonald if you are allowed to supersize your Big Mac and fries.”
On credit card late payment interest charges: “The banks get to go back in time, like a bad Marty McFly movie, and start charging you interest the day each and every purchase was made simply because you were one day late with your payment.”
On credit card reward programs: “You are paying 24.99% annually in interest so you can get a 1.25% kickback? I’m not going to say anything about that. My parents taught me that if I didn’t have something nice to say, I shouldn’t say anything at all.”
On outsourcing housework vs. DIY: “If your experience with chainsaws is limited to watching ‘The Texas Chainsaw Massacre” on Netflix, it’s probably a solid idea to call someone with a bit of experience before cutting down the tree in your backyard.”
Final thoughts: Wealthing Like Rabbits preaches that sound financial planning is simple: following a few fundamentals, having a little discipline and applying common sense.
Its message is simple and is taught in a fun and entertaining way. For anyone who doesn’t like traditional financial books for how boring they can be – definitely check out this book. If anything you’ll get a few laughs out of it. Click here to find out more about the book.
Note – although I received an advance copy of the book, I do not receive any income from book sales and the above review is solely my personal opinion of the book.