These 3 Resources Will Teach You How to Start Investing $$$

Sarah Blake 2019

Sarah Blake 2019

Is the stock market a mystery to you? Is it one of those things you think you’ll figure out “one day?”

Unfortunately, you’re not doing yourself any favours. No matter how much you pile up in a savings account, your money is losing its value over time.

This is because savings account interest rates are not keeping up with the rate of inflation. In Canada, the average rate of inflation has been about 3%, whereas it’s rare to get higher than a 2% interest rate from your “high-interest'“ savings account today.

In the next decades, money won’t be worth what it’s worth now, so despite good intentions, keeping it in a cash account is a sure way to have less.

Then there’s the whole issue of retirement. Remember the days when people had pensions? Yeah… it’s not so common any more. As millennials, it’s up to us to take care of our future net worths, and the younger we start, the higher they’ll be.

Investing is the best way to get your money to do the heavy lifting for you.

Entering the stock market as early as possible means you won’t have to put in as much of your own money because over time, your investments will double… and double again… and again — all thanks to the almost magical quality of compound interest.

Here are 3 resources that will teach you what you need to know to start investing:

Your money is your time and effort, and it’s important to really understand what you’re doing with it before you do. So don’t take my word for it! I’m going to pass the torch over to my favourite financial educators who will show you how to begin your own investing journey.

1. The Latte Factor by David Bach and John David Mann

this book Will Teach you why to invest.

The Latte Factor tells the story of Zoey, a young professional with a good job who somehow can’t break out of living paycheque to paycheque. Thanks to a mystery man at a coffee shop, Zoey learns three money rules, which allow her to build the wealth she never thought was possible.

I’m starting with this book because, at 160 pages, it’s an easy breezy read. It’s written as fiction but is packed with financial wisdom and even includes charts, similar to these ones, that show how time and compound interest are the secret formula to building wealth.

The Latter Factor makes the case for investing now — even if it’s just a few dollars a week! It shows why “living rich” doesn’t mean splurging but rather putting money towards long-term goals.

2. Broke Millennial Takes on Investing By Erin Lowry

This book will teach you how to invest.

After David Bach has fired you up about getting your money to make money, Erin Lowry will break down the jargon and calm your fears about market crashes.

Erin shows why and how ebbs and flows are part of the market and that they are nothing to worry about — as long as you have a long-term strategy that you adjust to decrease risk over time (i.e. the closer you get to needing the money in your investment account, the more you should start converting to cash).

Broke Millennial Takes on Investing is my encyclopedia for investing, but it’s not at all a dry read. With chapters covering everything from what to do before opening an investment account to investing apps and robo-advisors, it’s got the basic information you need to get started.

3. The Wander Wealthy Podcast with Tess Wicks

This podcast will show you what Investing IRL looks like.

Tess Wicks is my favourite financial educator. She has a serious passion for helping people create and achieve their money and business goals.

While Tess recently switched her focus to helping online service-based entrepreneurs, her earlier episodes, like WW 092: Sharing My Investing Journey and WW 078: Women REALLY Rock at Investing! discuss her real-life investment strategies.

Tess makes a great case for investing beyond retirement and gives tangible tips about how to make the right investment decisions for your particular lifestyle. She’s also just a fun person to listen to and is incredibly genuine about money.

Most episodes of The Wander Wealthy Podcast feature guests who talk about their own money stories, so you can gain an even more diverse picture of the way people form and follow their financial goals.

One Important Missing Piece

There’s one thing lacking from this list… a Canadian!

All these resources were created by Americans and so, as applicable as they are when it comes to overall terminology and strategies, they are missing some key features of the Canadian economy — especially TFSA’s. (Invest through your TFSA’s, people!)

But worry not, my fellow patriots. There will be more investing articles in the future with information specific to the Canadian $$$ experience.

So for now, let’s get you invested!