I hear this all the time, and I always tell people that it's a bad idea. Here's why: You have a 1940s basement that was never designed and built to be waterproof. Attempting to make it waterproof now will suck a lot of money from your wallet, might or might not work, and could cause unforeseen consequences - such as damage to your foundation. It's a recipe for disappointment and unhappiness.
My best advice: Align your expectations with the reality that you have a 1940s basement. Maintain your gutters and downspouts, direct all downspout water well away from the house, adjust the grade in your yard so that the soil slopes away from the house for at least 10', and finish your basement in such a way that occasional water entry won't damage any finishes.