How to Get Investing Starting From Complete Scratch
Written by Amy Legate-Wolfe at The Motley Fool Canada
New investors jumping in now probably have a few things on their minds. First, there’s the fact that they’ve never done this before and are faced with a wall of information coming at them from all directions. They are then told that now is the time to buy because stocks are so low. but then they are told not to expect much because after all the stock market is down.
It can be very confusing, and some people may want to start investing but have no idea how to even scrape together the money to do so. Also, they have no idea where to put the money once it’s available!
Today I’m going to help you start from scratch.
Put some cash aside
That’s easier said than done, isn’t it? But if you start from absolutely zero zero investments, then you probably need some cash flow. And right now, cash flow is an issue. Inflation may no longer be rising month-on-month, but it’s certainly incredibly high. In addition, interest rates remain high and are likely to rise further.
With everything from gas to groceries costing your money, it’s time to get creative — especially if you’re looking to start investing. But I want you to think of this not as spending money when you invest, but moving your money.
With that in mind, you’re moving your savings from one account where you’re not making money to another where you are. Let’s say this is your Tax-Exempt Savings Account (TFSA). There is no Rules you must invest if you have cash in your TFSA. Really, you can let it sit there. But that doesn’t help your future.
How to make this money
I often write about some side hustles and passive income streams to make money if you don’t have one handy. It’s also great for the future when you’ll be able to put money aside for emergencies, layoffs, whatever life throws your way.
Here are some of my top passive income options. Rent what you have first. This can be tools, parking, storage – whatever you can. Then sell what you can. There are so many ways to sell online these days, so it’s a good time to clean up – especially when people are looking to save.
I also enjoy other online methods such as completing surveys and data entry. These are remote jobs that can even lead to full-time employment when it comes to data collection. You can also consider buying cheap products and selling them online as well. This is especially popular when you buy hundreds of products Ali Baba and then resell them Amazon. Again, it could even become your new job!
where to invest
Once you have some cash flow generation methods that work within your time and budget, it’s time to start investing. I would look for blue chip companies in solid long-term industries. Blue-chip stocks would include well-known names within an industry that has decades of historical data and great potential for future earnings.
One of the best you can consider is Canadian utilities (TSX:CU). This utility company has been around for decades and is only Dividend King today at the TSX. It’s increased its dividend by about 7% annually for the past 50 years just for the last 10 years alone!
As the world will always need utilities and energy generation, this is a wise purchase that will give you instant income. The stock currently has a 4.41% dividend yield, so that’s money you’re making right now.
bottom line
Even if you don’t have a dime to your name, investing is always within reach. Whether it’s making cuts or creating income, you can certainly create enough cash flow to start making passive income today.
The How to Get Investing Starting From Complete Scratch article first appeared on The Motley Fool Germany.
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Stupid contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
2022