Lesson 5: Spending and Joy Units

In this episode, the team digs into the newly updated 2025 edition of The Wealthy Barber — Dave Chilton's iconic Canadian personal finance book that helped shape millions of financial journeys. Ben, Dan, and Ben walk through the biggest lessons Dave has reworked for a world of high housing costs, social-media-fueled spending pressure, new tax-sheltered accounts, and the ever-present noise of investing advice. This discussion explores why the book remains so effective: it blends timeless principles with approachable storytelling, humor, and deeply practical guidance. The conversation also highlights Dave's real-world insights from reviewing thousands of personal financial situations across Canada. You'll hear how the book explains foundational habits like paying yourself first, why simple investing beats stock picking, how renters can build wealth, and why understanding your own spending is the key to unlocking both financial progress and happiness. Whether you're brand new to money or a seasoned investor, the updated lessons hit harder in 2025 than ever before.

Key Points From This Episode:

(0:04) Introduction — recording early and setting up a deep dive into the updated Wealthy Barber.

(0:53) Why the new 2025 edition lands so well: humor, modern references, and timeless lessons.

(1:30) Dave Chilton's real-world insight from reviewing thousands of Canadians' financial situations.

(2:23) Why the storytelling works — characters, humor, and accessible teaching.

(3:45) Inside the narrative: Roy the barber, Matt, Maddie, Jess, Kyle, and the barbershop regulars.

(7:53) Lesson 1: "You can do this" — personal finance isn't about math, it's about simple principles.

(12:08) Lesson 2: Save 10% and pay yourself first — habit beats theory, compounding does the rest.

(14:29) Why saving is hard today: algorithms, FOMO, lifestyle creep, and rising costs.

(16:57) The behavioral case for saving early, even if economists say otherwise.

(18:52) Lesson 3: Be an owner, not a loaner — stocks vs. bonds and the engine of human ingenuity.

(22:49) The investor's paradox — the less you think you know, the better you invest.

(24:05) Why indexing wins: skewed stock returns and the impossibility of picking winners.

(27:49) How investing has changed since 1989 — indexing is now widely accessible.

(28:18) "The world feels scary today…" — the 1847 quote showing it always feels that way.

(34:03) RRSP vs. TFSA — identical outcomes at equal tax rates, and why RRSPs shine when taxed lower later.

(39:12) Debunking the RRSP "tax bomb" — why high earners still benefit most.

(42:06) Lesson 4: Housing — the four levers to buy today (cheaper homes,

(46:34) Why today's young buyers need new strategies, not 1980s nostalgia.

(48:02) Longer amortizations: counterintuitive but often financially sound.

(49:05) Leverage vs. psychology — why borrowing to invest feels scary even when the math matches.

(52:36) Renting isn't throwing money away — disciplined renters can match homeowner wealth.

(53:51) The hidden costs of owning — repairs, trees, chimneys, and constant surprises.

(55:44) The Canadian stigma around renting — and why it's undeserved.

(56:42) Lesson 5: Spending — "faulty brain wiring," social pressure, and unconscious habits.

(1:00:46) The multi-month spending summary — tedious but life-changing for both finances and happiness.

(1:02:43) Joy units per dollar — reallocating spending to maximize happiness.

(1:03:47) Practical rules: delay big purchases, beware car costs, indulge selectively, and remember "$1 saved = $2 earned."

Links From Today's Episode: Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on YouTube — https://www.youtube.com/channel/ Benjamin Felix — https://pwlcapital.com/our-team/

Benjamin on X — https://x.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://pwlcapital.com/our-team/

Cameron on X — https://x.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Ben Wilson on LinkedIn — https://www.linkedin.com/in/ben-wilson/

Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)