Category: Moneywise

First things first, let’s partially bust the myth: Benjamin Franklin never exactly said, “A penny saved is a penny earned.”

What he actually wrote, in his 1737 edition of “Poor Richard’s Almanack,” was “A penny saved is two pence clear.”

If only he knew how right he was: a penny saved in 1737 would be worth 79 cents today, according to the Official Data Foundation.

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• Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now

Among the many things he said about personal finance, these four are drawn from “The Way to Wealth,” a collection of adages and advice published in 1758 that were imparted in previous “Almanack” writings.

Be frugal

“We must add frugality, if we would make our industry more certainly successful,” Franklin wrote. "You may think , perhaps, that a little tea or a little punch now and then, diet a little more costly, clothes a little finer, and a little entertainment now and then, can be no great matter, but remember, many a little makes a mickle. Beware of little expenses. A small leak will sink a great ship."

The most recent figures from the U.S. Bureau of Labor Statistics show that, in 2022, Americans spent 10.9% more on apparel and services, including 18.8% more on footwear, than the previous year. While that’s not the same as splurging on a sea cruise, ask yourself whether slowly filling your closet points to a spending problem — that proverbial capsizing ship. Or, as Franklin lamented, “When you have bought one fine thing, you must buy 10 more.”

Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

Avoid debt

Franklin did not mince words with this tidbit: “Think what you do when you run in debt; you give to another power over your liberty.”

According to the Consumer Financial Protection Bureau, financial institutions super-boosted credit-card APRs from 12.9% in late 2013 to 22.8% in 2023, seizing on the opportunity to profit off interest charged to borrowers.

Following Franklin’s advice, spending less than you make works best. Here’s his literal food for thought: “Rather go to bed supperless than rise in debt.”

No pain, no gain

“There are no gains without pains,” he wrote.

And you thought some buff weightlifter made this up. Franklin was vocal about the dangers of sloth (including excess sleep) and urged people to pursue wealth through industriousness. He cites a gripe as common then as now among people who struggle with money: high taxes. But wishing for outside factors to change, he argued, is never as effective as taking charge through diligence.

“He that lives upon hope will die fasting,” Franklin wrote, while the industrious “shall never starve … at the working man’s house hunger looks in, but dares not enter.”

Consider Franklin’s counsel as an invitation to find and maintain income streams beyond your day job. Maybe start a side hustle out of your home and grow it from there.

Save while you can

While it’s hard to imagine your financial adviser speaking in couplets, Franklin’s wisdom rested in sayings that were catchy, not preachy. On saving, he opined: “For age and want, save while you may; no morning sun lasts a whole day.”

An excellent savings vehicle that follows Franklin’s fondness for investing is an employer-sponsored retirement plan. This need not be a painful paperwork exercise, as many workplaces now offer automatic enrollment plans. Workers with access to such plans saved an average of 12.3%, a number that includes company matches, according to the 2024 Vanguard report “How America Saves.”

For all Franklin’s sage advice, he signed off in “The Way to Wealth” by suggesting, with wit and resignation, that people exposed to it would likely still rather blow their money on stuff:

“The people heard it, and approved the doctrine, and immediately practiced the contrary, just as if it had been a common sermon; for the [public auction] opened, and they began to buy extravagantly.”

What to read next

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• Here are the 6 levels of wealth for retirement-age Americans — are you near the top or bottom of the pyramid?
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement

Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Whether they want to admit it, Americans have an abiding obsession with wealth and status. Who’s up? Who’s down? Where do I fit on the ladder of success?

Codie Sanchez — who has close to 400,000 followers on LinkedIn — has garnered more than 18,000 likes on an Instagram reel from October 2024 in which she outlines four ways to weigh whether your wealth and status pass the litmus test.

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• Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now

In her 40-second video, titled “These 4 Things Shape Your Wealth,” Sanchez blasts through each point at breakneck speed. But we’ve slowed it down with some context, including some contrarian viewpoints that still allow room for the best aspects of Sanchez’s approach.

The four-way litmus test

Here are the four dimensions of status and financial success as Sanchez identifies them:

Where you live

Codie’s catchphrase: “Your partners, taxes, assets, quality of life and opportunities all are largely driven by this one choice.”

This point works for both expensive and bargain locations. If you live in Texas, for example, you’ll save on state income tax. In Galveston, beachfront homes on the Gulf of Mexico go for as little as $255,000; more than 1,400 people moved to Galveston from Los Angeles between September and November of 2024.

Yet L.A., while much more costly, offers unrivaled access to Hollywood’s ritzy entertainment industry. Sanchez doesn’t specify which direction to take, only that it’s an important decision to make when considering wealth and status.

Who your friends are

Codie’s catchphrase: “You don’t need friends, you need allies.”

That old saw about the company you keep has obvious implications. Both at work and out on the town, those with high standing and earning power tend to welcome ever-present newcomers into their orbit. The key, as Sanchez sees it, is to focus on which ones will cheer you on and support efforts to better yourself — which hints at wealth of a different kind.

Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

Who you marry

Codie’s catchphrase: “Marry someone who pushes you towards your goals.”

Sanchez points to the way positive couples build each other up and encourage mutual success. The key is to remember that two people in a relationship will often have career and life goals, both as individuals and as a couple, writes David Khalili, a licensed marriage and family therapist. Keeping those goals congruent means couples are communicating well, another foundational quality for abundance in marriage and beyond.

What you spend your time on

Codie’s catchphrase: “If you can decrease the amount of time you have thinking about an idea to actually taking action on that idea, your life will change.”

This sentiment is nothing new, but still hits home. Sanchez echoes the writings of German polymath Johann Wolfgang von Goethe, who once famously said, “knowing is not enough; we must apply. Willing is not enough; we must do.”

In his five-year study of the financial habits of wealthy people, author-CPA Thomas Corley found that nearly 70% of those surveyed write down their goals; 67% set new goals yearly, and 62% set new goals daily.

Writing down goals for the year is akin to creating the ideas that Sanchez speaks of, but jotting down your daily goals and seeing them through could help you take action on those ideas.

A few of Sanchez’s shortcomings

Just because she’s pithy and sharp doesn’t exactly mean Sanchez always hits the mark. For example, she thinks “it’s a myth” that a marriage requires hard work, but there’s plenty of evidence that suggests successful marriages require just that. Simply put, marriages aren’t often successful when they’re put on cruise control.

Sanchez also says that friends who tell you to “slow down” aren’t the ones you need. But what if they’re the same friends who fear you’re succumbing to an out-of-balance work addiction in your pursuit of riches? While exact numbers are hard to pin down, research shows that workaholism affects between 27% and 30% of the gainfully employed, and burning out at the office can potentially lead to a lack of wealth in other areas of life.

There’s little doubt Sanchez inspires a great many followers. One Instagram user even noted, “Boy do I wish I had this presented to me 25 years ago!!!! My life would have looked VERY different!” But you’d be wise to look further into Sanchez’s rapid-fire wealth and status tips and evaluate how they might apply to you before taking them at face value.

What to read next

• Financial aid only funds about 27% of US college expenses — but savvy parents are using this 3-minute move to cover 100% of those costs
• Here are the 6 levels of wealth for retirement-age Americans — are you near the top or bottom of the pyramid?
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement

Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

When many people picture someone aged 16 to 24, they imagine a student buried in books or a young adult starting their first job. But for more than 4.3 million Gen Zers, neither is true — they’re not in school, not working, and increasingly unsure where they fit in.

That’s according to the latest report by Measure of America, a project of the Social Science Research Council. The study estimates that roughly 10.9% of young U.S. adults are NEET, or "not in Education, Employment, or Training."

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• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now

The report suggests that even a temporary withdrawal from society can have lasting consequences on a young person’s life.

“It’s associated with lower earnings, less education, worse health, and even less happiness in later adulthood,” the study says.

With nearly one in ten young people facing this grim future, some are now calling for a redesign of the education system to address the issue.

Worthless college degrees

Although college is traditionally seen as the path to building a bright future, political commentator Peter Hitchens argues that this belief no longer holds true.

“In many cases, young people have been sent off to universities for worthless degrees which have produced nothing for them at all,” said the author in a recent episode of his Alas Vine & Hitchens podcast. “And they would be much better off if they apprenticed to be plumbers or electricians. They would be able to look forward to a much more abundant and satisfying life.”

Indeed, nearly 52% of job postings in January 2024 did not require a formal college degree, according to Indeed’s Hiring Lab.

Meanwhile, 39% of firms in blue-collar sectors such as manufacturing and construction said they struggled to find employees in 2024, while 37% said the employees they hired were not suitable for the job, according to Angi.

This skills gap is likely to persist as young adults still see blue-collar work as less prestigious than white collar professions.

A Jobber study conducted in 2023 found that 74% of Americans between the ages of 18 and 20 perceive a stigma associated with choosing vocational school over a traditional four-year university.

Many are willing to go into debt to finance their white-collar ambitions. American households had accumulated $1.61 trillion in total student loan debt to finance some of these degrees, according to the New York Federal Reserve.

Crippling student debt for degrees that don’t lead to meaningful employment may explain why many young adults are disengaging from society. Fortunately, efforts are underway to turn the tide.

Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

Plugging the gap and changing perceptions

Shifting perceptions of blue-collar work and creating clearer pathways into trades and vocational careers could be key to addressing the NEET issue.

For instance, TV host Mike Rowe is giving away $2.5 million in scholarships this year to support young people pursuing skills training.

DEWALT, a leading manufacturer of power tools and equipment for construction and industrial use, is investing nearly $4 million through its "Grow the Trades" initiative.

The funding will be distributed as grants to 166 organizations across the U.S. and Canada that are dedicated to training the next generation of skilled tradespeople, including programs focused on skilling, reskilling and upskilling workers in areas such as carpentry, electrical work, HVAC and more.

Vocational training is already gaining traction. As of late 2024, 923,000 students had enrolled in a skilled trades school, up 13.6% from the previous year, according to the National Student Clearinghouse. If these trends continue, the skills gap — and the NEET crisis — could be gradually resolved.

What to read next

• Financial aid only funds about 27% of US college expenses — but savvy parents are using this 3-minute move to cover 100% of those costs
• Here are the 6 levels of wealth for retirement-age Americans — are you near the top or bottom of the pyramid?
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement

Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

When Jelani from New York called into The Ramsey Show about his financial problems, he didn’t sugarcoat his situation.

"I owe over $100,000. I’m kind of lost right now,” he told finance personality Dave Ramsey in a clip posted May 28. “I don’t know if I should file [for] bankruptcy. I just need some advice."

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• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 6 of the easiest ways you can catch up (and fast)
• Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now

Jelani owed around $80,000 in credit card debt, $8,500 in student loans and $11,500 on a car loan. His debt has accumulated rapidly since Thanksgiving, when he only owed $30,000.

Jelani is a truck driver earning between $110,000 and $140,000 per year. The source of his rising debt? Gambling via an online dice game.

A way out

Ramsey and co-host Jade Warshaw warned Jelani about the mental and financial toll of gambling and the psychological traps it creates.

Jelani admitted he quit gambling cold turkey and hadn’t yet sought help through therapy or Gamblers Anonymous, prompting Ramsey to urge him to get support from someone who understands the sobriety process.

As for a financial recovery plan, Ramsey laid out a no-frills approach:

1. Create a “scorched-earth, no life” recovery budget where all spending halts except for necessities and tackling debt. “Eat peanut butter and jelly. Eat beans and rice. That’s it,” Ramsey advised
2. List debts from smallest to largest and use the snowball method to pay them down aggressively
3. Pick up extra shifts at work and aim to increase income as much as possible

Jelani’s story is far from unique. Nearly 1-in-4 adults are drowning in “unmanageable” debt, according to a survey from Experian conducted in March.

But there’s a silver lining. With proper planning and execution, 45% of those who once felt overwhelmed have wiped their debt clean.

If you find yourself in a similar situation, you could consider paying down your debt by leveraging your home equity through a Home Equity Line of Credit (HELOC).

A HELOC is a secured line of credit that leverages your home as collateral. Depending on the value of your home and the remaining balance on your mortgage, you may be able to borrow funds at a lower interest rate from a lender as a form of revolving credit.

Rather than juggling multiple bills with varying due dates and interest rates, you can consolidate them into one easy-to-manage payment. The results? Less stress, generally reduced fees, and the potential for significant savings over time.

LendingTree’s marketplace connects you with top lenders offering competitive HELOC rates. Instead of going through the hassle of shopping for loans at individual banks or credit unions, LendingTree lets you compare multiple offers in one place. This helps you find the best HELOC for your situation.

Terms and conditions apply. NMLS#1136.

Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

The rise of online gambling

Online gambling has grown in America.

According to the National Council on Problem Gambling, an estimated 2.5 million adults in the U.S. meet the criteria for a severe gambling problem every year. Around 85% of adults have gambled at least once in their lives, while 60% have gambled within the past year.

Sports betting also went up nationwide in 2024, with revenue jumping 25.4% to a record-breaking $13.71 billion. This rise may be thanks to easier access to sports betting as more states have legalized the practice.

Back to basics

If you’re unsure how to take control of your finances or are facing financial anxiety, an advisor can help you get back on track.

Financial advisors can help you chart a course to being debt free, then help grow your wealth when you’re on the other side. After all, a good advisor can be a lifelong financial partner.

If you’re trying to figure out where to start, you can find vetted FINRA/SEC registered advisors near you for free with Advisor.com. Their network of experts only includes fiduciaries, which means they are required by law to act in your best interest.

All you have to do is answer a few questions about your financial situation, and Advisor.com will pair you with an expert.

From there, you can set up a free introductory call with no obligation to hire to test the waters, and see if they’re a good fit for you.

Once you feel more confident about your money, the next step is to build good habits that can help you achieve financial freedom.

Knowing where your money is going at all times can help you trim unnecessary expenses. However, budgeting can be challenging, especially when trying to track multiple accounts and daily expenses simultaneously. Monarch Money’s expense tracking system simplifies the process.

The platform seamlessly connects all your accounts in one place, giving you a clear view of where you’re overspending. It also helps you monitor your expenses and payments in real-time.

Whether you’re looking to save, invest, or simply control your spending, Monarch Money offers the tools to help you succeed. For a limited time, you can get 50% off your first year with the code NEWYEAR2025.

Once you’ve paid down your debt, consider saving and investing in order to build wealth. Even if you start from scratch, a little goes a long way toward developing a hefty nest egg.

For instance, investing just $30 each week for 20 years could add up to just over $80,000, assuming it compounds at 10% annually.

The S&P 500 index has averaged 13.46% returns annually over the last 15 years. So, consistently investing in low-cost index ETFs could be your ticket to long-term growth.

With Wealthfront’s automated investing platform, the power of compound interest works for you. Their sophisticated "set it and forget it" approach means your money is professionally managed and automatically rebalanced, allowing your wealth to grow steadily over time.

Start investing for the long term with globally diversified portfolios or go for a higher yield than a traditional savings account with an automated bond portfolio.

Open your account today and receive a $50 bonus to jumpstart your investment journey. Whether you’re saving for retirement, a home, or building generational wealth, Wealthfront’s low-cost, automated investment strategy can help you achieve your financial goals.

What to read next

• Financial aid only funds about 27% of US college expenses — but savvy parents are using this 3-minute move to cover 100% of those costs
• Here are the 6 levels of wealth for retirement-age Americans — are you near the top or bottom of the pyramid?
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement

Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Let me share a secret: you don’t need to be rolling in dough to start investing.

Some wealth managers prefer clients who have six (or seven!) figures to invest. But guess what? Times have changed and technology has opened the door to DIY investing. You can easily start investing without a sizeable sum or a financial advisor who charges big bucks. For the sake of this article, I’m going to explain the best ways to invest with as little as $1,000.

1. Invest in stocks

You don’t need to be a wealthy Wall Street player like Gordon Gecko to invest in the stock market. Thanks to advances in fintech, you can buy and sell stocks with very little money using your computer or mobile device. If you DIY invest with one of the best online brokerages, you’ll pay next to nothing in commission fees.

One option is to open an account with Wealthsimple Trade– the only discount brokerage in Canada that offers zero-commission trades. Using this platform, whether on mobile or on your desktop, you can buy and sell thousands of stocks and ETFs on major Canadian and U.S. exchanges without paying a dime in commission fees.

Once you’ve funded the account, it’s off to the races. You can start trading with as little as $1. With just a few taps on your phone, you can search for and add assets to your “Watchlist” – a tool that allows you to “save” a particular asset to monitor its activity without purchasing it (similar to adding online purchases to a virtual shopping cart).

Another low-cost option is Questrade – a DIY trading platform that offers commission-free trades of stocks, exchange-traded funds (ETFs) and low-cost option trading. You can use your mobile device or desktop computer to open a self-directed investing account with Questrade.

After you’ve chosen which account type you want, select “Funding” and follow the steps to put money into the account. Once the funds hit the account, you can start trading right away. 

Not sure what to buy? Investing in exchange-traded funds (ETFs) is a good way to build a low-cost, diversified portfolio while saving on the hefty fees charged by many Canadian mutual funds.

For expert top picks, take a look at the best ETFs Canadian loonies can buy.

2. Let a robo-advisor find you the perfect low-fee ETFs

Robo-advisors are great if DIY investing seems too complicated for you.

No, you’re not hiring the Terminator as a wealth manager. Rather, a robo advisor is a digital investment service that can create and manage a personalized portfolio of low-cost ETFs for you. Then, using computer algorithms, the robo-advisor will recommend a custom portfolio that’s tailored to you.

With a reputable robo-advisor like Wealthsimple, it takes just 15 minutes to open an account. It starts by answering an online questionnaire about your financial goals and risk tolerance.

After your account is set up, link your external bank account and transfer funds into the account. There’s no minimum investment required with Wealthsimple, meaning that you can start investing with as little as $1. Once the account is funded, Wealthsimple takes care of the rest – including the work of creating and rebalancing your investment portfolio.

3. Guaranteed income certificate (GIC) could be the ticket

If you can’t risk riding the stock market, a Guaranteed Income Certificate (GIC) is the perfect place to park $1,000. A GIC is considered one of the safest investments you can make, as it offers a guaranteed interest rate on your savings.

Your funds are typically locked-in for a term (e.g. between 30 days to 5 years), and as long as you don’t withdraw early, you’re guaranteed to grow your savings risk-free with a higher-than-average interest rate (usually 1.50% and up). Your GIC can also be held in both registered (e.g. TFSA or RRSP) and non-registered accounts.

Since GIC interest rates fluctuate constantly, shop around for the best GIC rates out there.

Your $1,000 is invested – now just sit back and wait for the GIC to mature. Once the term is up, you can reinvest it or put the funds back into your savings account.

4. Cryptocurrency is not so cryptic

If you’re adventurous, you could put $1,000 toward trading cryptocurrency – a digital asset class built on blockchain technology. Crypto trading carries a relatively low cost for entry, and above all, it can be very lucrative. For example, the value of one Bitcoin has skyrocketed from less than a cent in early 2010 to CAD$120,010.96 today.

However, before pulling the trigger, know that there’s considerable risk to trading cryptocurrency. For starters, it’s largely unregulated, which can invite sketchy behaviour on some trading platforms. And cybercriminals are constantly looking for ways to crack into your computer or mobile device and steal your coins, amounting to billions of dollars worth of crypto looted every year

It’s also a highly speculative investment prone to bubbling and bursting. For instance, in 2018, the price of one Bitcoin fell from nearly USD$20,000 to around USD$4,000. Yikes!

There are a number of different cryptocurrencies out there, and it’s difficult to predict which will appreciate in value and at what time. If you want to avoid a a financial rollercoaster ride, keep one of our key cryptocurrency investing tips in mind: Start by investing a small amount of money into crypto rather than your entire life savings, and diversify the rest of your funds in a variety of other investment channels listed elsewhere on this page.

Whatever amount you ultimately choose to invest in crpyto, you can reduce your risk by buying and selling Bitcoin and Ethereum (the two largest cryptocurrencies) on Wealthsimple Crypto – Canada’s first regulated crypto trading platform in Canada. Unlike other crypto platforms, Wealthsimple Crypto doesn’t allow for “bring your own crypto” and stores crypto-assets in “cold wallets” at Gemini Trust Company – a trusted and regulated custodian that has $200M in cold storage insurance coverage. It’s one of the easiest and safest ways to trade cryptocurrency, and there are also no fees for trading within Wealthsimple Crypto.

5. Invest in your peers

How about using your $1,000 to help small businesses grow? Since big banks can be uber-conservative with their lending criteria, peer-to-peer lending platforms are popping up to allow everyday Canadians to invest in small businesses.

One of the leading disruptors is Lending Loop – Canada’s first fully regulated peer-to-peer lending platform focused on small businesses. There are two options for investing with Lending Loop.

The first is to use the “Auto Lend” feature. In less than 5 minutes, Lending Loop can build a customized plan to put your money to work, helping you earn a projected return of 5-8% per year on your investment. It works like a robo advisor: open an account and answer an online questionnaire about your risk tolerance, assets and financial goals. Then, Lending Loop will make a recommendation on what plan best matches your goals.

Or you can choose to manually invest. Once you’ve linked your bank account and funded your account, you can scroll the loan listings and decide where to invest. Lending Loop reviews each business and assigns it a “loan grade” (between A+ to E), making it easier to choose.

Either way, you will receive monthly payments with interest from the businesses that borrowed from you. It’s a win-win: you’re supporting small businesses while diversifying your investment portfolio and earning a fixed-income.

6. Stash your cash in a high-interest savings account

Need to keep your cash close and don’t want to wager any risk? Squirrel away your money in a high-interest savings account – a bank account that typically offers a higher interest rate than a regular chequing or savings account. You’re basically loaning money to the bank, and in return, you get a better-than-average interest rate on your deposits. Unlike a GIC, your money isn’t locked in and you can access it anytime (depending on the bank, it could take 24 hours or longer to cash it out).

7. Invest in real estate with a REIT ETF

$1,000 won’t go far in terms of buying property, but there are other ways to invest in real estate. Specifically, you could pool your money into a Real Estate Investment Trust (REIT) – companies that own and sell shares in income-generating real estate. The REIT generates rental income and distributes the profit after expenses to unit (or share) holders.

With this type of investment vehicle, you can invest in all kinds of real estate properties: from office buildings to malls to residential apartment buildings. While you’d likely need a hefty down payment to buy an income property, you typically only need less than $100 to invest in (and reap the benefits of) a REIT. Another bonus: skip the headaches of being a landlord.

There are many different types of REITs, but a solid bet is to invest in a REIT exchange-traded fund – a basket of REITs traded on the stock exchange. First of all, it’s a fast and cheap way to create a balanced, diversified investment portfolio with real estate holdings. It also saves you the work of researching and putting together a portfolio of REITs on your own. Lastly, a REIT ETF helps buffer the volatility of the stock market through diversification. You’re putting your chips down on the larger real estate market rather than on one company.

Getting started with REIT ETFs is easy. All you have to do is purchase trust units (shares) in a REIT ETF the same way you would purchase stock: through an online brokerage. Three top REIT ETFs in Canada to consider include the:

• iShares S&P/TSX Capped REIT Index Fund
• BMO Equal Weight REITs Index ETF
• Vanguard FTSE Canadian Capped REIT Index ETF

Tips for investing with little money

• Diversify, diversify, diversify: Don’t put all your eggs into one basket. Even with just $1,000, your best defense against volatility is to spread out your investments as much as possible.
• Know your risk tolerance: Taking an aggressive (but balanced) investment strategy may make good financial sense. But if you’re on the verge of retirement, low-risk investments may be a better bet. Revisit your risk tolerance for an annual “tune-up” and ensure it matches your current reality.
• Take calculated risks: Designate no more than 5% of your portfolio towards speculative (aka riskier) investments, such as cryptocurrency or IPOs. That way, you’ve built in a buffer in case something tanks.
• Do your homework: Before taking the leap, read up on winning investing strategies: from value investing to building a diversified portfolio of low-cost index funds, as well as avoiding a growth stock trap.

Final thoughts

You may not have a million bucks to invest, but that doesn’t mean it’s game over. The road to riches starts with building a balanced, diversified portfolio and $1,000 is enough to kickstart that journey. Once you get going, consider setting up an automated deposit or using a personal finance app to turbocharge your contributions. Good luck!

FAQ

How much do I really need to start investing?

Not a lot. For some of the above investment opportunities, you can get started with as little as $1 (although that probably won’t go very far). If you can swing it, $1,000 is a good start.

What is the best option for beginners?

If you have no experience with investing, start with a robo advisor. It will not only design a personalized portfolio to match your financial goals and risk tolerance, but it will do the work of managing it using computer algorithms. The fees are also very low: Wealthsimple, for example, charges just 0.40% to 0.50%.

What’s a safe investment option?

A GIC is a good place to start. Considered one of the safest investments in Canada, all you have to do is open an account, choose a term, and deposit the funds.

This article 7 ways to invest with little money and get big returnsoriginally appeared on Money.ca

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Virginia Loop is not giving up her 3,000 square-foot greenhouse without a fight.

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The Colorado-based Loop, who lives along Moss Rock Court on the northwest side of Divide, recently told KOAA News5 why she believes she doesn’t need a permit for the structure she has sunk more than $150,000 into.

‘I’m not giving up on my dream’

So, what happened?

In June 2024, Loop says a code enforcement officer showed up while she was excavating her property to install a greenhouse kit.

She says she told the officer she didn’t need a permit thanks to an exemption in the building code for agricultural structures. She sent him an email citing Colorado’s Farm Stand Act passed in 2019. She told Agweb the officer gave her a green light, "but said I’d need to get a permit for the electricity when I put in electricity."

Believing the matter was dealt with, she continued to construct the greenhouse and only got a permit for the electrical installations in May this year.

Unfortunately for Loop, soon after she was slapped with a stop-work order. It wasn’t for the electrical setup, but for constructing the greenhouse itself without a permit.

“I went to the planning and building department to file an appeal,” Loop told KOAA News5. “I brought the email from the code enforcement, and they said I needed to talk to the director. They pulled the first stop-work order so I could finish the electricity. We put $15,000 more electricity in the building. And then when that got inspected, they gave me another stop work order.”

Loop says she was building the greenhouse to grow produce for her neighbors and for her sons to sell at local farmers’ markets. She says the county is overstepping.

“I’m not giving up on my dream,” she said to KOAA News5. “It’s not just for my greenhouse. It’s for the rights of every person in Teller County. We have 27,000 residents in this county, and what I’ve experienced at your building and planning department is nothing but overreach and a bully.”

Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

What do the authorities say?

KOAA News5 obtained the official letter sent to Loop from the Teller County Administrator, which lays out the county’s position including the following:

• The property is located in a residential zoning district; a commercial greenhouse is not allowed.
• The greenhouse doesn’t qualify as a home occupation.
• The property is classified as residential by the Teller County Assessor, which disqualifies it from the agricultural exemption from building permits.
• The well is residential and may not be used for irrigation or commercial agriculture.

Had Loop sought a permit from the County Building Department, the county argues, “they would have learned that the size of their greenhouse far exceeds what might have been allowed and would have likely learned of the other problems/prohibitions on operating a commercial operation in her residential development in the R-1 zone.”

Loop says the Colorado Farm Stand Act supports her cause. According to the Act, a farm stand is defined as “a temporary or permanent structure used for the sale and display of agricultural products resulting from agricultural operations that are conducted on the principal use site on which the farm stand is located.”

Teller County officials disagree, writing to KOAA News5 that the Act “does not apply because her commercial greenhouse does not meet the definition of a ‘farm stand’ in CRS 29-[31]-102(2).”

But Loop isn’t budging. She told AgWeb, “my greenhouse is a dual farm stand — a place to sell and grow, and I’m protected by this very state law.”

The county’s letter laid out the next steps, instructing Loop to cease all commercial activity related to the greenhouse, remove the unpermitted structure and resolve water usage issues with the Colorado Division of Water Resources.

Loop says water isn’t an issue and that she trucks it in from a water fill station, not her residential well.

While no legal action has been taken yet, the county’s letter dated July 3 warns, “You should be aware that if you fail or refuse to correct the violations, the County could take formal legal action against you to correct the violations.”

Loop is gearing up for a legal and public battle.

Beyond zoning battles and legal gray areas lies a bigger issue: the sunk cost trap, and it could cost Loop everything.

Avoid the sunk cost trap

Loop’s situation is a textbook example of sunk cost, a financial principle where people continue to invest in a project simply because they’ve already sunk a big chunk of change into it.

Despite repeated county warnings and legal risk, Loop is holding her ground, but dreams typically can’t override local land use codes.

Demolishing the greenhouse would be costly. Combined with the initial investment and legal fees, the total loss could be in the hundreds of thousands.

Loop’s biggest mistake may not be building the greenhouse, but it could have been building before fully ensuring zoning and compliance.

If she’d applied through the proper channels for permits early on, her structure likely would’ve been denied.

If Loop wants to salvage her investment or prevent a total wipeout, she could consider quickly pivoting. She could sell her current property to fund relocation to an area with proper zoning.

If she wants to continue her dream of growing and selling food, she could figure out what is financially feasible for her and consider leasing greenhouse space or partnering with existing farms and agricultural cooperatives. This could offer lower capital risk, with direct access to existing markets.

Every month Loop spends fighting rather than selling is another month of sunk revenue. And if the county forces demolition, the entire $150,000 investment and anything else she’s poured into it may evaporate.

The best course of action if you’re in a similar situation is to get legal and zoning clarity before you invest. And if you hit a wall, run the numbers. Sometimes the smartest move is not to fight harder, but to pivot smarter.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

After a brief hiatus, the federal government is set to reintroduce incentives for electric vehicle (EV) buyers, aiming to accelerate Canada’s transition to greener transportation and ease the upfront cost burden for consumers. The announcement, made by Minister of Transport Lisa Joly earlier this month, marks a significant policy shift intended to support environmental goals while providing tangible financial relief to Canadians.

“We recognize the importance of making electric vehicles more accessible and affordable,” Minister Joly said in a press briefing. The revived incentives are expected to offer up to $5,000 off the purchase price of eligible EVs, a figure designed to bring EV ownership within reach of more Canadians amid rising interest in sustainable options.

Incentives return amid rising EV popularity

The move comes after the federal incentive program was paused earlier this year, sparking concerns from both industry experts and consumers alike. According to Transport Canada, electric vehicle sales in Canada surged by over 55% in 2024 compared to the previous year, demonstrating a growing appetite for clean vehicles despite their higher upfront costs relative to traditional gas-powered cars.

For prospective buyers, the incentive could be a decisive factor. “I was holding off on purchasing an EV because of the price, but this rebate makes it more doable,” said Reddit user CanuckDriver95 on r/canada. Their sentiment echoed through the community, with many users expressing cautious optimism about the government’s renewed commitment.

Balancing cost and climate goals

While the $5,000 incentive may not cover the entire price gap between EVs and conventional vehicles, it significantly lowers the financial barrier. Data from the Canadian Vehicle Manufacturers’ Association indicates the average price of an electric vehicle in Canada hovers around $57,000, compared to approximately $44,000 for a new gas-powered car.

“It’s a step in the right direction,” said EcoCanuck, another Reddit contributor. “The initial cost is still high, but incentives like these make EVs more accessible, and that’s crucial for climate progress.”

The incentives will apply to eligible vehicles priced under $55,000, with an additional $2,500 available for models under $45,000, encouraging consumers to choose more affordable, mass-market EV options.

What should consumers consider?

While the rebate is enticing, potential buyers should weigh other factors, including charging infrastructure, battery life and long-term maintenance costs. According to Natural Resources Canada, operating costs for EVs can be significantly lower than for gasoline vehicles, with savings of up to $1,000 annually on fuel and maintenance.

Financial planners recommend consumers factor in provincial incentives as well, which can add thousands more in rebates depending on location. For example, Quebec offers up to $8,000 in provincial rebates, while British Columbia provides up to $3,000.

What EV incentives mean for your bottom line

The return of federal EV incentives signals a broader trend in Canada’s commitment to sustainable living and responsible spending. For Canadians seeking to lower their carbon footprint without breaking the bank, the timing couldn’t be better.

Adam Thorn, Program Director of Transportation at the Pembina Institute, has emphasized the importance of supporting consumers during the transition to electric vehicles. He notes that incentives play a crucial role in making EVs more accessible, especially for middle- and low-income buyers. “Tiering EV incentives based on income — like British Columbia has done — will help ensure tax dollars reach consumers that need it most,” Thorn said.

The road ahead: Why now is the time to consider an EV

As Canada reintroduces EV incentives, the decision signals more than just a rebate. It represents a broader commitment to building a low-carbon future that’s financially accessible to more Canadians. By addressing both environmental imperatives and economic barriers, the federal government is setting the stage for widespread EV adoption, especially as consumers grow increasingly conscious of sustainability and long-term value.

While the initial cost of EVs may still give some buyers pause, the combination of federal and provincial incentives, lower operating expenses and expanding infrastructure offers a clearer path forward. For many households, this policy shift could make the difference between delaying and diving into electric mobility. As climate pressures mount and energy costs fluctuate, EVs — and the incentives that support them — are no longer just a lifestyle choice; they’re quickly becoming a practical financial strategy and a cornerstone of Canada’s transportation future.

Sources

1. Reddit: r/Canada: Ottawa to bring back EV incentives: Minister Joly

2. Electric Autonomy Canada: Eligibility for Canada’s EV incentives should be income-based (August 26, 2022)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.