New to Investing! Follow this guide
Why Should You Invest
Investing is such an important piece to building wealth and long-term financial security. Nobody wants to worry about money or let it be a stopping block to living the life we want, but many of us do not invest, which could help us not worry about money. Saving money is very nice and cute, but just saving money does not help you beat inflation or build wealth. If you were to save 10k in 2020, the same 10k in 2025 is worth less, specifically 8.6k, so you have lost some money. On the other hand, if you invested 10k in 2020, by 2025 it’s worth about 15k, which is more than your initial principal. Investing can help you achieve financial freedom and build wealth!
Step 1
Choose an Investment Broker and Platform
You want to choose a platform that is easy for you to use and you can understand. I currently use Wealthsimple and Questrade to invest in Canada. Here’s a blog post on how the top investment platforms compare in Canada. If you don’t live in Canada, ensure you do a lot of research to pick the right platform.
Step 2
Learn a Few Basics about Investing
Investing is not hard, but there’s a lot of information, and the best way to learn is to start investing. However, before you do that if you know nothing about investing, check out this Investing cheat sheet, and you can also check out some of my videos on TikTok.
Step 3
Choose an Investment Account to Invest
Investment accounts are where you buy your investments, think of them as a wallet that holds your cards and cash (Different types of investments). Accounts you should always prioritize investing with are tax-sheltered accounts. In Canada, we have the TFSA(Tax-Free Savings Account), RRSP (Registered Retirement Savings Plan), RESP (Registered Education Savings Plan), FHSA (First Home Savings Plan), and a bunch of others. These accounts are similar to a 401K and ROTH IRA in the USA and the ISAs in the UK.
Step 4
Just do It! Start Investing!
Now, it’s time to buy your first stock or fund. I recommend investing in a broad-market fund such as an ETF. I think it’s the best way to invest, especially as a beginner. This is a form of passive investing, which research has shown performs better than active investing most of the time. Here’s a guide to purchasing your first ETF on Wealthsimple and Questrade.
Step 5
Continue Learning about Investing and Personal Finance
You have to continue learning about investing and keep investing consistently. Consistency is the trick of the investing game!
“Time in the Market always beats Timing the Market”
Some resources to help you keep learning;
Books: The Intelligent Investor, The Psychology of Money, Girls That Invest, Grow Your Money.
Youtube Accounts: Beavis Wealth
Newsletters: The Peak Money, Motley Fool, TLDR
Podcasts: Girls That Invest, The Investing for Beginners Podcast.
