Have you been thinking about investing but don’t know where to start? Our video resource, Get Started with Investing, is a great first step. We’ve highlighted five things you can learn from the resource that can help you get started on your investing journey.
1. Determine if Investing is Right for You
One of the first steps to consider before investing is to determine whether investing is a right fit for you. Start by examining your current financial situation. This will help you better understand what your financial priorities are, and if you can make room for investing.
In the video below, we encourage you to think about your financial position. For example, do you have high-interest debt? What are your monthly expenses? These are some of the important factors to take into account when considering investing.
2. Learn Key Differences Between Saving and Investing
Saving and investing can both be used as a means to reach your financial goals, but there are differences between these two paths.
What It Means to Be a Saver
Saving means gradually putting money aside for future purchases and potential emergencies. Saving is an important strategy, especially during uncertain economic periods. There are financial products and high-interest bank accounts available, which earn interest and make small gains on the money you’re tucking away.
Investing Involves More Risk, but There Is Potential to Earn More
Purchasing investments is a way to try and earn more gains than a typical savings account provides. There is more risk involved with investing; in fact, key differences between saving and investing are related to risk. Watch this video to learn more.
Wondering if you’re a saver or an investor? Take our Investor vs. Saver Quiz to find out.
3. Get to Know Your Financial Self
Knowing your financial self includes a number of factors, including understanding your risk tolerance and investment knowledge.
What is risk tolerance?
Risk tolerance is how comfortable or willing you are to risk losing money on an investment.
Your risk tolerance is unique, and is made up of a number of factors, including:
- Time horizon – how much time you have to meet your financial goals and make up for any losses you might experience.
- Cash requirements – your dependence on investments to meet your daily living costs.
- Emotional factors – your comfort with changes in the value of their investments.
Knowing your financial self can also help with your consideration in choosing the investment professional or service you’ll want to use to reach your goals.
4. Compare Active versus Passive Investing
Active and passive investors generally employ different investment strategies. Once you have developed an investment plan that suits your financial goals and motivations, you can then determine if you want to take an active or passive investing strategy.
Learn more about which strategy might be right for you by watching this video:
5. Become Familiar with Common Investment Types
You may have heard of investments like mutual funds, ETFs, stocks, and bonds. Before deciding on which products you want to buy, it’s important to understand how each investment type works, and how they differ from one another.
Take your investment knowledge a step further by learning how these common investment types work.
It’s also a good idea to seek out independent advice before committing to an investment. One option is to reach out to a registered investment advisor with any questions you may have.
Get Started with Investing Now
Get Started with Investing is a free, online resource designed to help you learn the investing basics. You can work through the entire resource in about 15 minutes, or go at your own pace!
Investing doesn’t have to feel like an overwhelming task. Equip yourself with unbiased investment knowledge and kick off your investor journey today.
Report a Concern
If you have any concerns about a person or company offering an investment opportunity, please contact BCSC Inquiries at 604-899-6854 or 1-800-373-6393, or through e-mail at [email protected]. You can also file a complaint or submit a tip anonymously using the BCSC’s online complaint form.
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