I want to manage my finances

How to invest in three steps

What are the basic steps for making your first investment?

Step 1: Save

There are many tips for finding extra money. Here are a few:

  • Bring your lunch
  • Take your bike
  • Buy store brands
  • Ask about student discounts
  • Use coupons
  • Go for a less expensive mobile phone plan
  • Comparison shop
  • Automatically set aside an amount each week

Step 2: Understand the characteristics of an investment


This is the amount of money earned on the money invested. Some investments guarantee a rate of return. For other investments, you may not know the rate of return until the investment reaches maturity or when it is sold.


This is the possibility of making less money than you expected with your investment. It is also the risk of losing some or all of your investment. To find out an investment's level of risk, ask questions and read the information that accompanies the investment.


The ability to convert your investment quickly into cash. When will you need your money or when would you like to recoup the investment? This will influence your investment choice.

Step 3: Know what kind of investor you are

Before investing, evaluate:

  • Your financial situation
  • Your financial objectives
  • Your risk tolerance
  • Your investment horizon
  • Applicable fees

A financial professional can help you evaluate the situation.

Additional resources