I’ve worked with many people who have built seven-figure RRSPs, and it’s not because they were the highest earners or stock-picking geniuses. They simply followed a set of key principles. Today, I’ll show you three common secrets that they share, and at the end, I’ll go over one major mistake I still see most RRSP millionaires making. Let’s start with…
Secret #1. They Make RRSP Contributions Hurt (But in a Good Way)
Imagine you’ve just finished a brutal workout—your legs are shaking, your arms are burning, and you already know you’ll be sore tomorrow. But that soreness? It’s proof you pushed your limits. It means you’re getting stronger.
Now, picture walking into the gym, doing a few light reps, and leaving without breaking a sweat. No soreness, no struggle, and ultimately, no progress. That’s the difference between average savers and RRSP millionaires.
RRSP millionaires challenge themselves. They don’t just contribute what feels comfortable; they push themselves to save more, even when it stings a little.
Most people take the opposite approach. They save whatever’s left after bills, groceries, and a few too many Uber Eats orders. But here’s the problem: there’s often not much left over for saving. RRSP millionaires flip this on its head. They pay their RRSP first—before rent, before bills, before anything. They know that if they don’t force themselves to save, it won’t happen.
How They Do It: The Forced Scarcity Trick
💰 They increase RRSP contributions every time they get a raise
- If they get a 5% raise, they immediately bump up their RRSP contributions by at least 2-3%. They never “feel” the extra money, so they never miss it.
🏠 They treat RRSP savings like rent or a mortgage payment
- Ever considered not paying rent this month? Didn’t think so. RRSP millionaires think of their savings the same way—it’s not optional.
📈 They round up their savings
- Planning to save $500/month? They push it to $550 or $600—a small but meaningful stretch. Over decades, that extra $50-$100 per month adds up to tens of thousands of dollars. You can think of it as squeezing out extra reps in the gym!
🛑 They avoid lifestyle creep
- Most people upgrade their lifestyle every time they get a raise. New car, bigger apartment, fancier vacations. RRSP millionaires? They upgrade their savings first.
Finding the Right Balance: The “Workout Rule” of Saving
Just like in the gym, there’s a fine balance to saving too intensely. Push yourself too hard, and you burn out or get injured. Don’t push yourself enough, and you stay weak. The key? Find the sweet spot where you’re challenging yourself—but not making yourself miserable.
A good test? If saving is making you stressed, isolated, or constantly saying no to things you value, you might be overtraining.
Why This Works
Let’s compare two investors:
- Jennifer saves “whatever’s left” each month. Some months it’s $100, some months it is $1000, some months it is nothing. She never feels like she’s making progress.
- John follows the “painful but productive” method. He automates $600/month no matter what. Every time he gets a raise, he increases his contributions.
Fast forward 30 years:
- Jennifer is constantly playing catch-up and never builds serious wealth.
- John retires with hundreds of thousands more, all because he pushed himself just a little more and stayed consistent.
Warren Buffett said it best: “Do not save what is left after spending, but spend what is left after saving.”
Secret #2. RRSP Millionaires Are Stoic Investors (Remove Emotion From the Equation)
One of my favourite philosophies is Stoicism—an ancient school of thought that teaches us to control what we can and ignore what we can’t. And if there’s one place this mindset is life-changing, it’s investing.
Many, many investors are ruled by emotion. They get excited when stocks are up, panic when they’re down, and constantly second-guess themselves. They read the headlines, watch market updates, and react impulsively. RRSP millionaires? They take a Stoic approach. They follow a rules-based system and stick to it—no matter what.
What Stoic Investors Do Differently
📰 They Ignore Market Noise
Every day, the media is filled with both financial doom and hype:
- “ MARKET CRASH! Worst day since 2008!”
- “ STOCKS SOAR! Time to buy?”
- “ RECESSION IMMINENT! Should you sell everything?”
Stoic investors don’t react. They know that short-term market moves are just noise—irrelevant to their long-term success. Instead of making impulsive decisions, they stay focused on their plan.
😨 They Don’t Let Fear or Greed Control Them
When stocks hit record highs, the average investor gets greedy. They chase hot stocks, FOMO into risky bets, and overextend themselves. Then, when the market drops, they panic-sell at the worst possible time.
RRSP millionaires do the opposite. They don’t get caught up in hype, and they don’t panic when things go south. They trust their strategy, knowing that sticking to the plan beats out emotional decisions in the long run.
📉 They Accept Volatility as Part of the Game
Markets go up and down—that’s just how investing works. But most people freak out when they see their portfolio drop. They assume a downturn means they’re losing money when in reality, temporary losses are part of long-term gains.
Stoic investors see downturns as buying opportunities. Instead of panicking, they keep investing, knowing that over decades, markets will recover and grow.
Why This Works
Let’s compare two investors:
Josh: The Emotional Investor
Josh checks his portfolio every single day, sometimes multiple times an hour. When markets drop, he panics and sells. When they rise, he rushes to buy in. He constantly second-guesses himself, jumping in and out of investments.
The problem? He often sells low and buys high. His returns suffer—not because he picked bad investments, but because he let emotions dictate his decisions and the added trading fees he incurs.
Ashley: The Stoic Investor
Ashley invests consistently and doesn’t get worked up over the day-to-day market news. She doesn’t react to short-term movements and keeps contributing to her RRSP, rain or shine.
Fast forward 30 years. Ashley is far wealthier—not because she made brilliant stock picks, but because she stayed calm and stuck to her plan.
If you’re serious about growing your TFSA, check out my free guide on the 5 steps to building a $1 million TFSA.
Secret #3. They Trick Their Future Self Into Being Rich
Many people think building wealth takes a lot of discipline and willpower. But RRSP millionaires know the truth: you can trick yourself into saving more—without even noticing.
How?
The Secret to Effortless Saving
- They set up pre-authorized RRSP contributions
- It happens automatically on payday—so they never get a chance to spend the money.
- They increase contributions every year
- They set up a 1% automatic increase annually, so savings grow without effort.
- They reinvest their RRSP tax refund
- Most people spend their refunds on vacations or gadgets. RRSP millionaires reinvest it—adding tens or even hundreds of thousands to their portfolios over time.
- They take full advantage of free money
- Employer RRSP matching? They never leave it on the table.
- Spousal RRSPs? They use them to balance taxes in retirement.
- Deduction carryforwards? They claim them when it saves the most tax.
Why This Works
Let’s compare two people:
- James tries to “manually” save. He transfers money to his RRSP when he remembers. Some months he forgets. Other months he “needs” the money for something else.
- Sophie automates everything. Her RRSP contributions happen without her lifting a finger.
After 30 years, Sophie is far richer—not because she earned more, but because she removed human error from the equation.
1 RRSP Millionaire Mistake: They Don’t Know the “RRSP Exit Strategy” Before They Enter
Many of our RRSP millionaire clients still make one costly mistake: they focus on growing their RRSP but don’t plan how to withdraw it tax-efficiently. Without a strategy, they risk paying far more in taxes than necessary in retirement.
The Problem: RRSPs Are Tax-Deferred, Not Tax-Free
Your RRSP lowers your taxable income today, but every dollar withdrawn is taxed. Without a plan, you could end up withdrawing large sums at a high tax rate or leaving your heirs with a huge tax bill when your RRSP is fully taxed upon death.
The Solution
- Start early withdrawals to spread taxable income and avoid tax spikes when RRIF withdrawals begin at 72.
- Shift funds into a TFSA to keep investments growing tax-free.
- Coordinate RRSP withdrawals with CPP, OAS, and other income to avoid higher tax brackets and OAS clawback.
- Plan for taxes on death—a life insurance policy can help offset the tax burden, ensuring more wealth stays with your family.
Most retirees unknowingly give away tens of thousands in taxes just by not planning their RRSP withdrawals properly. At Blueprint Financial, we create personalized tax-efficient withdrawal strategies so you can keep more of your retirement savings. Visit our services now to book a free consultation.
