One of the biggest differences between those who are rich and those who are not is what each does with their money. Everyone can use money to buy things like food, furniture, clothes, and other items that are consumed and lose their value as soon as they are purchased, and their protective wrappers or coverings are removed. Here is where the difference begins. As you purchase items on a regular basis you must also invest in things that don't lose value but increase in merit over time. In Canada, you can start investing as soon as you turn 18. Investing at an early age can get you ahead of the game and enhance your habits of using money the smart way.

As a Canadian, there are unique ways available in our country that help citizens invest in money and save for the long run. One example is a Tax-Free Savings Account (TFSA). This is an account that can be made with the bank you are associated with to ensure that the contributions you make to it are not taxed, and any withdrawals made from that account are also not taxed. A TFSA can be money set aside in investments, mutual funds, and other bonds which allows your money to grow over time and used when you need to make big transactions in your future. Another benefit of a TFSA account is that you can withdraw money from them at any time, unlike other investment accounts such as mutual funds and a Registered Retirement Savings Plan (RRSP) if they are in a locked-in plan. With the housing market on the rise and putting a cash deposit on your future house becoming more impossible as the years go by, investing and having a good lump sum of money in your savings is becoming more and more imperative to secure housing in the future.

Although an RRSP is subject to tax and needs to be included when doing your fiscal income tax, you can withdraw from this account whenever you need to if it you do not set it up as a lockedin account. This savings plan is better for long term saving than short term as it sets you up for when you wish to retire. Withdrawing from this account frequently can cause your yearly tax to increase, so limiting withdrawals is recommended according to the Government of Canada website.


Mutual funds are another way to go when considering investing. Opening a seperate account from your savings, this fund is associated with a company of your choosing that gathers money from various people and invests them in stocks and other assets.

Depending on your goals for this fund, you can set it to low, medium, or high risk. For example, if you plan on not pulling the money out of your funds for a long time, setting it to low to medium risk is suitable. If you need your money to grow fast because you plan on withdrawing the money quickly, considering a higher risk mutual fund may be more appropriate. Ultimately, the best way to find out what type of investing is most suited to your needs and matches your income capabilities is by consulting an investment associate or financial advisor at your bank. These representatives can tailor a plan according to how much you want to invest, at what rate, and when you would like to withdraw money. Taking the first step towards more financially stable future for yourself is within your hands. All you have to do is take that first leap by thinking smart and feeling richer in the process!