Sep 10, 2025
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Building wealth in Canada comes with unique challenges, but financial expert Ramit Sethi wants Canadians to rethink some of the most common money myths. On the popular Prof G Podcast with Scott Galloway, Sethi shared insights that can help Canadians reshape how they save, spend, and invest. Here are three key takeaways.
1. You don’t need to own a home to build wealth
Owning a home has long been seen as the ultimate Canadian dream. But with housing affordability at historic lows, many Canadians are questioning whether homeownership is still the best path to financial security.
As of July 2025, the Canadian Real Estate Association (CREA) reports the national average home price at $710,872, down 1.6% year-over-year, but still significantly higher than pre-pandemic levels housing prices. With prices out of reach for many, renting can be a smart financial choice — especially if it frees up money to invest elsewhere.
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According to Statistics Canada, 33.1% of households rent. This group is growing in large cities, and renters can still build long-term wealth through investments such as exchange-traded funds (ETFs), mutual funds, or Real Estate Investment Trusts (REITs).
Tip: If you want exposure to real estate without buying a home, consider Canadian REITs, which allow you to invest in residential and commercial properties while keeping your capital liquid.
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2. Couples need a shared financial vision
Money is one of the top sources of conflict in Canadian households. Sethi stresses that couples should build a shared financial vision, aligning on priorities like homeownership, retirement planning, or children’s education.
This means agreeing on risk tolerance and investment strategies. For example, if one partner prefers safe investments like GICs, while the other wants higher-growth equities, it’s important to compromise on a strategy that reflects both comfort levels.
Working with a certified financial planner can help couples set joint goals through vehicles such as:
- Registered Retirement Savings Plans (RRSPs)
- Tax-Free Savings Accounts (TFSAs)
- Registered Education Savings Plans (RESPs)
Tip: Try a money date, where you and your partner chat in a non-judgemental way about where you are spending money versus where you'd like to spend your money.
3. Build a rich life beyond financial assets
Sethi emphasizes that wealth isn’t just about money — it’s about creating a life you value. For Canadians, this might mean prioritizing family experiences, travel, or lifestyle choices over accumulating material possessions.
Still, financial preparedness is key. Building an emergency fund remains essential, ideally in a high-interest savings account (HISA). While rates have dropped from 2024 highs, many Canadian banks still offer 1.5% to 4.25% — much better than leaving savings in a chequing account where you may only get 0.1% interest on your deposits.
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Tip: Look into Canadian fintech tools such as Wealthsimple, Koho, or Moka that help automate saving and investing. Small, consistent contributions can grow into long-term wealth. Another strong option are online banks — banks with no physical locations but provide the same services as traditional banks. For instance, EQ Bank offers up to 2.75% on its day-to-day account and as much as 2.5% on its Notice Savings Accounts.
Read more: The ultra-rich are bailing on volatile stocks right now — these 4 shockproof assets are their new safe havens
Additional factors for Canadians to consider
Rising costs for groceries, gas, and housing continue to impact budgets. To offset these additional costs, make sure your investments are outpacing inflation — earning at least 2% or more.
Also, Canadian households now carry record debt loads. Higher interest rates on mortgages, HELOCs, and credit cards mean debt repayment strategies should be part of any financial plan. Consider transferring credit card balances to a low or no-interest promotional rate credit card.
What is the best credit card in Canada? Compare more than 140 cards in just 5 seconds.
Bottom line
Challenging old money myths can open new paths to financial freedom. Canadians don’t need to buy a home to build wealth, but they do need a clear financial vision — especially if they’re in a partnership — and a balanced approach that includes savings, investments, and mindful spending. By focusing on both financial security and personal fulfillment, Canadians can truly build a “rich life.”
—with files from Romana King
Sources
1. Canadian Real Estate Association (CREA): Canadian Housing Market Stats
2. Statistics Canada: Housing (September 21, 2022)
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Gemma Lewis is a freelance writer with her CFA UK Certificate in Investment Management. She has her Master’s of Business from the University of St Andrews, and Bachelor of Commerce from McGill University. Her commentary has been featured across top-tier publications, including Forbes, the BBC, Financial Times, Telegraph, Yahoo!, Motley Fool, and Fortune.
