It is a well-known fact that rabbits multiply fast (For a detailed treatment, read this). So it is only apt to use a metaphor that is widely known and accepted by most people and apply it to the concept of multiplying your wealth in the same manner. The author has even proposed making wealthing a verb, and hence the title of the book – Wealthing like rabbits.
Although the book is written with the average Canadian in mind, the underlying principles of wealth making are universal and anyone can learn from this book, no matter in which part of the world you reside. Non-Canadians will simply have to figure out their national equivalent of the different types of accounts that the author talks about. At most the only Canadian specific terminologies are limited to the RRSP and TFSA accounts (For those living in the US, the 401(k) and the Roth IRA come closest to these accounts). The rest of the advice – from avoiding debt, buying a house – and other general “common-sense” principles apply to everyone wanting to develop a better hold on their spending habits no matter where they live.
Each chapter of the book deals with a specific area of wealth building. The author starts off by describing two different scenarios on a typical morning in a household. One is that of a couple who has not taken serious attempts to be conscious about their building their wealth. The other is that of a couple who has taken concrete steps towards ensuring that their life is more than simply surviving pay-check to pay-check. Everyone is likely to fall in a spectrum between these two cases. If you are already towards the latter example, congratulations, you’re already on your way towards wealthing like rabbits. For others, maybe this book can help you get out of that rut.
The author starts with the RRSP, one of the oldest and most traditional ways that Canadians can use for saving towards their retirement. The TFSA account, a relatively newer entrant, is another concept that the author explains. Both have their own unique features that make one better over the other, depending on your current financial situation and your growth expectation of your salary in the future.
The book then moves on toward other areas where people often make a financial mistake – taking on debt. The author explains the correct way to size your mortgage so that you’re not burdened with years and years of paying interest for things you don’t need and shouldn’t have bought in the first place. Debt is a cruel master and can often make the biggest dent in one’s plans to become financially independent. Be it a mortgage on your dream house or a (relatively smaller yet equally dangerous) credit card debt, the author preaches that it is best to avoid debt in all its forms. Of course, buying a house is often inevitable for most people some time in their life. But by ensuring that you don’t go overboard with a mortgage as suggested by your bank will go a long way for you to get a chance to enjoy your newly bought dwelling, instead of working day and night just to afford to live in it.
The book ends with a collection of other snippets of advice that the author probably could not fit in any other section. I liked how the author introduces all of these concepts in a hilarious manner, ensuring that one doesn’t get bored with a subject that is often on the back burner for most people. It is a quick enough read and practical for everyone to start implementing immediately. You can probably finish reading the book in a few days but the advice will last you a life-time (and maybe make you richer for following it). I recommend this book for anyone wanting to get their financial life in order. This book comes highly recommended on reddit along with the Millionaire Teacher (yet another book I’m planning to read this year).
In the end, the underlying principles of wealth building are simple (but not easy). If I had to summarize the advice of the book, it would be something like – Spend less than you earn. Save as much as possible. Avoid debt. Invest part of your savings in various instruments (including equity). The last is something that people often balk at – equities. But thankfully, in this day and age, one doesn’t have to be Warren Buffett to make money on the stock market. There are hundreds of ETFs and robo-advisors that one can utilize to grow their wealth depending on their time horizon and risk tolerance. But the general advice is to start as early as possible and not touch your retirement savings until well… you retire. That is why they’re called retirement savings.