Investing

How to properly save/invest my money.

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  • Nov 8th, 2014 5:14 pm
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Deal Addict
Mar 29, 2012
1474 posts
368 upvotes
Vancouver

How to properly save/invest my money.

Hey guys, I take home around $3-3.2k net/month.

After all debts(bills, rent, etc.) are paid, I usually have $2k left over at the end of the month. I live with parents right now, i'm currently saving for a home. I have around 110k total in my banks.

What would be the wise decision to do with that $2k usually left over per month? Should it keep going to savings or should it go to purchasing more mutual funds?
12 replies
Member
Jul 4, 2009
336 posts
55 upvotes
Mississauga
Open a TD Waterhouse (If your with TD) account and buy/sell your own stocks would be the best option for you. You can max out a TFSA and then have either a RSP or cash account you can use to invest also, are you following the stock market at all?
Member
Jan 18, 2014
209 posts
14 upvotes
SquirreI wrote: .. After all debts(bills, rent, etc.) are paid, I usually have $2k left over at the end of the month. ..
..
What would be the wise decision to do with that $2k usually left over per month? Should it keep going to savings or should it go to purchasing more mutual funds?
I don't have the answer, I have a similar question.
After 10 months with RFD this is my progress: started TD eSeries, halted high fee MFs, started Tangerine, weening off the big banks, unable to do ETFs yet.
Deal Addict
Mar 29, 2012
1474 posts
368 upvotes
Vancouver
rumtillidie wrote: Open a TD Waterhouse (If your with TD) account and buy/sell your own stocks would be the best option for you. You can max out a TFSA and then have either a RSP or cash account you can use to invest also, are you following the stock market at all?
I haven't. I'm a total newbie when it comes to stocks and investing.
Deal Fanatic
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Dec 14, 2010
7113 posts
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SquirreI wrote: I haven't. I'm a total newbie when it comes to stocks and investing.
When are you planning to buy your house? The amount exposed to equities will depend on that. Since you are new to stocks and investing, I suggest starting with Couch Potato.

Rod
Deal Addict
Feb 28, 2003
1322 posts
90 upvotes
Basically do ETF or TD e-series by maxing out tfsa then buying the aforementioned in that tfsa. Same with RRSP since u can with draw for home buyer plan from RRSP.

Follow Canadian couch potato to start
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Deal Addict
Mar 29, 2012
1474 posts
368 upvotes
Vancouver
rodbarc wrote: When are you planning to buy your house? The amount exposed to equities will depend on that. Since you are new to stocks and investing, I suggest starting with Couch Potato.

Rod
i'm actually going to see a condo next weekend, this is the first time im going to be buying property so i don't know the details. but within the next 5 years i expect it to be fully paid for.
Deal Addict
Feb 28, 2003
1322 posts
90 upvotes
20% down payment is probably what ur looking at, so keep that on the side if ur looking to buy a place ASAP and invest the rest

unless someone here says its better to pull from HBP for some reason that i dont know about
Rogers
$35 Unlimited Local Calling
$30 6GB Data
$10 Retention VP (2500sms/CID/VM)
$75 + GRRF 2.13 + 5% GST = $80.99 :|
Member
Jul 1, 2009
364 posts
54 upvotes
Coquitlam
SquirreI wrote: i'm actually going to see a condo next weekend, this is the first time im going to be buying property so i don't know the details. but within the next 5 years i expect it to be fully paid for.
Why not look into buying a smaller house/rancher that you could rent out? and live in the basement suite or rent that out as well. Much better investment. Once you get that going, buy yourself a condo. Thats what ive been doing, and im about to get my own place soon.
Deal Addict
User avatar
Nov 9, 2003
1528 posts
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Grimsby
SquirreI wrote: i'm actually going to see a condo next weekend, this is the first time im going to be buying property so i don't know the details. but within the next 5 years i expect it to be fully paid for.
That is impressive in itself. More power to you, you are already on the right track.
Deal Addict
Dec 21, 2011
3518 posts
689 upvotes
Allenford
hoping to piggy back here instead of starting a new thread.

I'd like to buy some td stock. am exist customer. have no idea about stocks or how to buy them, and would like to ease in this way. we have a rental property and finally have some cash sitting in an account. I'm not really into rrsps, we have not used our tfsas yet.

we want to buy a cottage next year and would like to use the cash we have for the DP so would like to play a little to get comfortable with how to buy stock, but need to be able to cash it out and in a fairly reliable stock.

is the best thing to open a TDW account and buy the td stock through that? from what kind of account - is there a benefit to using a tfsa acct if we expect to use the majority of the cash in the next year? wouldn't be replacing again for a couple of years.

I keep seeing references to couch potato but I don't think that would benefit me yet as I only want to buy the one kind for now. I feel much more comfortable mamanging debt than investing, it scares me so I just need very simple directions till I get more brave - help!
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Dec 14, 2010
7113 posts
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snow00774 wrote: hoping to piggy back here instead of starting a new thread.

I'd like to buy some td stock. am exist customer. have no idea about stocks or how to buy them, and would like to ease in this way. we have a rental property and finally have some cash sitting in an account. I'm not really into rrsps, we have not used our tfsas yet.

we want to buy a cottage next year and would like to use the cash we have for the DP so would like to play a little to get comfortable with how to buy stock, but need to be able to cash it out and in a fairly reliable stock.

is the best thing to open a TDW account and buy the td stock through that? from what kind of account - is there a benefit to using a tfsa acct if we expect to use the majority of the cash in the next year? wouldn't be replacing again for a couple of years.

I keep seeing references to couch potato but I don't think that would benefit me yet as I only want to buy the one kind for now. I feel much more comfortable mamanging debt than investing, it scares me so I just need very simple directions till I get more brave - help!
Seems a bad idea. Don't play with your downpayment, specially if you are scarred to invest. TD is a good company, but it doesn't mean that the stock will down. "Reliable" investing is for long term, and provided one has the ability to endure crashes.

I'd rather stick with something safe to preserve your downpayment and meanwhile, paper-trade to see how it looks like. It's way more important to undertand why you'd buy TD or anything else than understanding the process of hitting a "buy" button. It's also important to develop the temperament to ignore crashes. Investing is not for instant gratification. It's for long term.

Rod
Sr. Member
May 26, 2008
638 posts
136 upvotes
ELiTE KiLLaH wrote: 20% down payment is probably what ur looking at, so keep that on the side if ur looking to buy a place ASAP and invest the rest

unless someone here says its better to pull from HBP for some reason that i dont know about
I agree with you. I started a thread in this forum and I am also looking to buy a property in 2-3 years. I would not invest if you have less than a year until you need the money. OP, in your case since you are looking at property already i wouldn't invest anything! Only money that you would not use for down payment or extra cash you should be investing for long term with a minimum of I would say 3 years (In case there is a crash)

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