How I did it: I'm a student, so I only worked this summer before going back to university. I carefully budgeted my year to figure out how much I could afford to put aside, and put it in my savings until I turned 19 this September. Then I dragged my Dad to the bank to set up a stock portfolio, and transferred my savings in! I know I can stick to my budget this year without having to dip into what I've invested because I took all my possible expenses (Christmas, unplanned trips, etc.) into account, so the money I've put aside will be in the market for the next few years, and as I continue to work every summer I can build on it!

Lessons & tips: Wait until you have a substantial sum that is worth investing. Research your options - are you more of a risk taker, or do you want to play it safe? Talk to someone who knows about the stock market and who can give you tips on where to invest to see your money grow. Most of all, don't invest unless you know you're ready to. If you invest without having enough money leftover to live off of, there's not much point because you'll have to pull out funds before they've had the chance to start earing interest.

Resources: TD Canada Trust bank website - great to calculate your retirement savings goal and to explain the various options you have to invest your money (in Canada specifically).
People you know who have invested before and/or who have experience in the field.

Oct 10, 2008, 09:58AM PDT | 1 comment | 1 cheer