Everyone has a different idea of what money means to them. For some, it’s about freedom. For others, it’s about security or being able to afford the things that matter most. No matter your starting point, investing can help you take control of your financial future.
You don’t need a lot of money to start investing. What matters most is having a clear plan and understanding what works for you. Before you invest, take time to think about:
Your goals – Are you saving for something short-term like a vacation, or long-term like retirement? Your goals will help you decide how much to invest and what types of investments might be right for you.
Your timeline – When do you need the money? If your goal is far away, you may be able to take on more risk. If it’s coming up soon, you might want safer options.
Your comfort with risk – Every investment carries some level of risk—the chance you could lose money. Understanding your risk tolerance helps you choose investments that match your comfort level and financial situation. There are two sides to risk tolerance:
Financial risk tolerance – Can you afford to lose some of your investment without affecting your lifestyle? Think about how a loss would impact your ability to pay bills or reach your goals.
Emotional risk tolerance – How do you feel when your investments go down in value? If market changes cause stress or anxiety, you may want to choose lower-risk options.
Your risk tolerance can change over time. Life events, like getting married, changing jobs, or planning for retirement, can affect how much risk you’re willing or able to take.
Whether you’re managing your own investments or working with a professional, only you can decide what feels right. Think about:
Your financial situation – How much can you afford to invest without affecting your day-to-day needs?
Your personality – Do you prefer stability, or are you okay with some risk for the chance of higher returns?
Your values – Do you want to support certain industries or avoid others? Your investments can reflect what matters to you.
Your investment plan should reflect your lifestyle, values, and comfort level. It’s okay to start small and adjust as you learn more.
Before you commit to any investment:
Learn about your options – There are many types of investments, each with different risks, costs, and potential returns. Take time to understand how they work.
Understand the costs – Every investment has fees. Some are upfront, others are ongoing. These costs affect how much money you make.
Check registration – Make sure anyone offering financial advice or products is registered. You can verify this at Are They Registered? on the Canadian Securities Administrators (CSA) website.
Being informed helps you make smart, confident decisions. If something sounds too good to be true, it probably is.
Even if someone else is managing your investments, you’re still in charge. Staying informed helps you make decisions that reflect your goals and comfort level.
Your financial situation can change—so can your goals. Life events like starting a new job, having a child, or planning for retirement may affect how much risk you’re willing to take and how you invest.
Make it a habit to:
Review your investment plan at least once a year to make sure it still fits your needs
Update your goals and risk tolerance when your life or finances change
Check in with your advisor or do your own research to stay informed and confident in your choices
A good plan grows with you. Keeping it up to date helps you stay on track and avoid surprises.