# Any advice for a 19 year old ?



## medicboy (Aug 10, 2013)

Hello, I wanted to know if any of you have advice for a 19 year old looking to get into investing/saving.
I'm currently in school but I just started working part-time, Do not currently have any expenses so I would like to know where I should put my money.
Any advice or tips would be greatly appreciated .


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## BoringInvestor (Sep 12, 2013)

To get started you'll need to answer a few questions:
1) What do you need this money for? House? Car? Long-term savings?
2) How much will you have to start, and how much do you intend to add to it over time?


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## steve41 (Apr 18, 2009)

OK.... between age 19 and 35 you have only one concern..... growing/investing in the one and only asset which counts..... your career. After you have that sorted out, then worry about investing.


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## Synergy (Mar 18, 2013)

Open up a TFSA and set up a HISA. I think people's trust is still offering 3%. If you want to start saving for the long term, you could put aside a portion of your savings (10-15% or so) as long term investments - 5-10 yr time horizon (index funds such as e-series, etc.). Since you're still in school and you'll likely need to dip into your savings in the near future, the TFSA will works well for this - tax free growth.


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## Addy (Mar 12, 2010)

Congratulations for thinking about what to do with your money at a young age. Plus you took the effort to search out this financial discussion forum, very impressive. You'll do well, and it will be exciting to see your portfolio grow over the years. It can become addictive, but it's a good addiction


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## medicboy (Aug 10, 2013)

BoringInvestor said:


> To get started you'll need to answer a few questions:
> 1) What do you need this money for? House? Car? Long-term savings?
> 2) How much will you have to start, and how much do you intend to add to it over time?


1. Not really sure yet.. but I would like to have a car in the near future, also I will need money to pay off student loans, then a place to live after college.
2. Just what im making at work, and i intend to add as much as i can since i dont have many expenses



steve41 said:


> OK.... between age 19 and 35 you have only one concern..... growing/investing in the one and only asset which counts..... your career. After you have that sorted out, then worry about investing.


Well I'm currently in school and will hopefully become a Paramedic in the next 3 years but I want to start saving asap.



Synergy said:


> Open up a TFSA and set up a HISA. I think people's trust is still offering 3%. If you want to start saving for the long term, you could put aside a portion of your savings (10-15% or so) as long term investments - 5-10 yr time horizon (index funds such as e-series, etc.). Since you're still in school and you'll likely need to dip into your savings in the near future, the TFSA will works well for this - tax free growth.


Thank you sir, i will look into this. Other than people's trust, what banks do you recommend?



Addy said:


> Congratulations for thinking about what to do with your money at a young age. Plus you took the effort to search out this financial discussion forum, very impressive. You'll do well, and it will be exciting to see your portfolio grow over the years. It can become addictive, but it's a good addiction


Thank you sir 
hehe :biggrin:


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## MoneyGal (Apr 24, 2009)

steve41 said:


> OK.... between age 19 and 35 you have only one concern..... growing/investing in the one and only asset which counts..... your career. After you have that sorted out, then worry about investing.


In the infamous words of Dr. Zoidberg, why not both?


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## Eclectic12 (Oct 20, 2010)

^^^^

+1 ... I found that when I focused too much on one thing, I wasn't learning/doing as much or as effectively as when there was some sort of balance.


Cheers


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## hboy43 (May 10, 2009)

steve41 said:


> OK.... between age 19 and 35 you have only one concern..... growing/investing in the one and only asset which counts..... your career. After you have that sorted out, then worry about investing.


How about learning who you are and why you are on the planet. I did investing well, life maybe not so much.

hboy43


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## Toronto.gal (Jan 8, 2010)

MoneyGal said:


> In the infamous words of Dr. Zoidberg, why not both?


+1.

Age [young & old] is no limit to *learning*, and doing so about investing at 19, could be one of your biggest investments of all.


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## Synergy (Mar 18, 2013)

medicboy said:


> Thank you sir, i will look into this. Other than people's trust, what banks do you recommend?


I do all my personal banking and investing through TD, the big green. I thought PT would be a good starting point for you as you won't find that kind of rate with any of the big banks. Opening a PT TFSA for your short term savings and a TD e-series account (index funds) for longer term investing could be an option for you. You could also set aside a portion of your TFSA for longer term investing if you like.


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## BoringInvestor (Sep 12, 2013)

medicboy said:


> 1. Not really sure yet.. but I would like to have a car in the near future, also I will need money to pay off student loans, then a place to live after college.
> 2. Just what im making at work, and i intend to add as much as i can since i dont have many expenses


Ok. 

First, whatever you think you'll need in the next 5 years (car, student loans repayment, down payment) should go into 'Pool A'. 
With Pool A you're going to find a nice high-interest saving account either at your current financial institution or one of the online ones that typically offer higher rates.
This is money you can't/don't want to lose, so your goals are: i) capital preservation, ii) maximizing your risk-free return, and iiii) if applicable, the convenience of deposits/withdrawals.

The rest of your money, money for longer-term goals like retirement/building your net worth, are 'Pool B'.
This is money you wont' need in the next 5 years, and can afford to let the value fluctuate up and down.
For this you'll want to look at investing. There are lots of great ideas out there (in these forums, for instance) re: couch potato portfolios. Read, learn, then read and learn some more. Educate yourself until you're ready to take the plunge.


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## praire_guy (Sep 8, 2011)

steve41 said:


> OK.... between age 19 and 35 you have only one concern..... growing/investing in the one and only asset which counts..... your career. After you have that sorted out, then worry about investing.



Wow, I,was surprised at this response. Why not focus on both? 

Compound interest is one of the wonders of the world. I started young, and I'm glad I did.


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## blin10 (Jun 27, 2011)

don't forget to enjoy life, you'll be in your 20's only once


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## Plugging Along (Jan 3, 2011)

Agree with others good advice here. 

Way to go in thinking finances at such a young age, that outs you aha ahead with the mindset. Getting the right mind set takes a long time for some. 

My advice...

Focus on your career advancement and positioning yourself in the long term. Earning more when you are young I believe will pay off more than just investing. 
Learn to save, which it sounds like you have. I suggests put some for your short term (under 5 years) in something safe, and play around for your long term. 
Have some fun, if you are are saving some for the short term, and some for the long term, then don't feel bad about blowing a little money along the way. Take some of the money to have so you can figure out what you like. You don't want regrets later saying your wish you would have spent more.


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## peterk (May 16, 2010)

praire_guy said:


> Wow, I,was surprised at this response. Why not focus on both?
> 
> Compound interest is one of the wonders of the world. I started young, and I'm glad I did.


While I agree in theory, in practice I don't. Sure, if you can actually _focus_ on multiple things at a time then go for it. But I can't and I know most of the people I went to school with can't either.

I think focus should be on schooling, career, and any other money earning and skill building activities you have access to. With the rest of your energy going into socializing and other "you're only young once" shenanigans. Delving into the world of investing and finance will likely mean giving up some of those other, more worthy, life activities.

Don't spend money on unnecessary stuff, never carry a credit card balance, and you aren't too good to have roomates, are the only pieces of financial knowledge any college student needs, in my opinion.


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## Toronto.gal (Jan 8, 2010)

peterk said:


> Sure, if you can actually _focus_ on multiple things at a time then go for it. But I can't and I know most of the people I went to school with can't either.


Maybe b4 the internet, lol, but since then, don't most people focus on multiple things at a time, ie: iPhone/forum/FB/Twitter, et al [how many hours is that?], so why not learn a bit about investment also b4 graduation?

It's not like people don't read/learn outside of school/it's not like investing is rocket science/and it's not as though he would have to invest it all and not enjoy his 20's.


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## donald (Apr 18, 2011)

I don't think I would buy stocks and investments right out of the gate(mainly because I would need to have liquid funds from everything that is sure to be looming)
But...regardless I would start now(very important)getting in the habit of saving 10% or maybe even 20% of my income going forward(regardless if it is low or not)
If you can cultivate this habit and it takes hold and it becomes automatic and natural you will be 75% of the way their!
This habit is the key
Favorite personal finance book that some think is silly but I love it is the richest man in Babylon-that's the secret sauce(don't get to side tracked thinking in terms of growth stocks ect)
My 2 cents


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## peterk (May 16, 2010)

Toronto.gal said:


> Maybe b4 the internet, lol, but since then, don't most people focus on multiple things at a time, ie: iPhone/forum/FB/Twitter, et al [how many hours is that?], so why not learn a bit about investment also b4 graduation?
> 
> It's not like people don't read/learn outside of school/it's not like investing is rocket science/and it's not as though he would have to invest it all and not enjoy his 20's.


For me anyways, this meandering journey of learning about investing and personal finance that i've been on over the past 4 years has been one big distraction. Am I better off for it? Yes. But I think I'd be even more better off if that energy went into concentrated focus on my education/career, and other activities that can only happen when you're 20.

Without any real skin in the game (10s or 100s of thousands of dollars +) a lot of my participation as a student in this forum was just mental masterbation. Now that I actually make money and have a job I am finding myself back here asking questions I thought I learned the answers to 2 years. It is akin to studying for a math test with your previously completed homework in front of you. You don't concentrate hard enough on what you're doing and just think "yeap, that's good, I know how to do that, I'll remember that when I need to". Then when you get the test and it's a blank paper you realize you don't even know what to write down for the first step.

But of course, it was probably the forum that kept me distracted enough that I haven't ever thought about opening a Twitter, so I guess it's not all bad :biggrin:


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## MoneyGal (Apr 24, 2009)

Hooookay; if you focus ONLY on developing your human capital until you are 35, then what are you doing with all the money you are making that results from your intense focus on your human capital? If you do "only that" from 18-35 and don't make some serious coin (relative to your efforts) as a result, you're doing it badly, so you probably shouldn't be restricting your focus to it. And then ... how are you going to focus on making money for the rest of your career? 

I know too many 35-year-olds who essentially took the advice to focus on their career until they felt "established." Guess what? They are 35-year-olds making $90K plus with nothing saved and terrible personal financial habits. Great cashflow, yes - but they spend it all and now they've spent a decade or more ignoring personal finance. No fun!


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## peterk (May 16, 2010)

Well I agree with that too. :encouragement:

I am referring to the University crowd specifically, not the 23+ young professional as much. Once you start your career and have some coin saved you better start thinking about your finances and investing as to not end up as one of those broke 35 year olds. But I stand behind my advice for the 16-22 folks who are here reading this instead of studying or having a party with their friends on a Thursday afternoon.


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## MoneyGal (Apr 24, 2009)

16-22 soooooo different than 23-35.


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## MoneyGal (Apr 24, 2009)

p.s. It's Thursday afternoon! I'm totally having a party! It involves feeding my children and taking them to swim class.


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## Eclectic12 (Oct 20, 2010)

peterk said:


> While I agree in theory, in practice I don't. Sure, if you can actually _focus_ on multiple things at a time then go for it. But I can't and I know most of the people I went to school with can't either.


Let's see ... focus on school for the main and use the breaks to learn investing/finances at one's own pace ... where's the issue?

When I went to school, my classmates could quote sport stats, played card games at lunch/spaces and spent a lot of time at bars. Surely a bit of time from any of these won't be a big sacrifice, I'd think.


I also found that learning at my own pace & for my own interest meant a better result than arbitrary schedules/assignments.


Cheers


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## Eclectic12 (Oct 20, 2010)

peterk said:


> ... Without any real skin in the game (10s or 100s of thousands of dollars +) a lot of my participation as a student in this forum was just mental masterbation.
> 
> Now that I actually make money and have a job I am finding myself back here asking questions I thought I learned the answers to 2 years ...


Any examples you are willing to share? 

Usually my learning about whatever skill means I'm either asking the detail questions instead of being overwhelmed by the basics or I'm able to connect something I've learned to what I'm seeing in the market so that I can make money in a new way or I have a comfort level I would not have had.


As well, the financial market is a market that is changing all the time so unless you are asking the same basic questions over and over - I'm not sure coming back and asking questions is necessarily a negative. 

Some examples include trades have gone from $200 to $30 to $10 to buys are free for ETFs, ETFs are relatively new, split capital shares used to pay no dividends but now most do etc. etc.


Cheers

*PS*




peterk said:


> ... I am referring to the University crowd specifically, not the 23+ young professional as much. Once you start your career and have some coin saved you better start thinking about your finances and investing as to not end up as one of those broke 35 year olds.


... and I'm glad that my folks were models and taught me financial lessons in high school so that when I had to fill dead time (ex. bus ride to school, waiting for the bus when all my friends had already caught theirs) I could learn the more advanced concepts.

Would you advise someone in the University crowd who loves art, writing or hockey to "save it for later as schooling, money making and social activities" are the priority at the moment?


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## Canadian (Sep 19, 2013)

peterk said:


> Well I agree with that too. :encouragement:
> 
> I am referring to the University crowd specifically, not the 23+ young professional as much. Once you start your career and have some coin saved you better start thinking about your finances and investing as to not end up as one of those broke 35 year olds. But I stand behind my advice for the 16-22 folks who are here reading this instead of studying or having a party with their friends on a Thursday afternoon.


I would argue that starting in the 16-22 range makes the 23-35 range much easier. Developing balanced but disciplined habits allows for one to have fun in their 20s _and_ 30s without sacrifices made in either decade. Also, knowlege grows like a snowball. Learning the basics while one is young means that it will be second nature when they are "established" and mastering the more advanced topics will be easily attainable.


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## Toronto.gal (Jan 8, 2010)

peterk said:


> I think I'd be even more better off if that energy went into concentrated focus on my education/career/But of course, *it was probably the forum that kept me distracted*


Aha, so you were addicted to CMF, so was CMF to blame?  

Seriously, I do remember some of what you told us before, about taking longer to finish your studies, but in the end, you did it & did not give up!

Learning first is key, so OP has a good 3 years to save & learn b4 actually investing; and with interest at an early age, imagine where he might be by 35!


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## off.by.10 (Mar 16, 2014)

MoneyGal said:


> Hooookay; if you focus ONLY on developing your human capital until you are 35, then what are you doing with all the money you are making that results from your intense focus on your human capital?


Just stash it away. My primary financial focus in my twenties was saving enough money to not have to worry about short-term money issues. Then saving enough money so that I'm not too worried about loosing part of it when investing. Then came 2008 and I managed not to panic but eventually took some losses in 2010 to buy a house. Now that all that is done, I'm trying to get into investing more seriously. I don't think I could do that properly if I felt like I couldn't afford to loose any money. I also believe that getting burned too early and too hard might just result in learning the wrong lessons and loosing (by not making) money in the long run. Of course, everyone is different so that might be just me.


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## MoneyGal (Apr 24, 2009)

My point was (intended to be) that if you are successful financially as a result of "focusing on your career," you're kind of going to have to learn about money. At least, if you're doing it right. N'est-ce pas?


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## off.by.10 (Mar 16, 2014)

MoneyGal said:


> My point was (intended to be) that if you are successful financially as a result of "focusing on your career," you're kind of going to have to learn about money. At least, if you're doing it right. N'est-ce pas?


Of course, it's in your best interest to learn. There's more to learn than simply investing though. Otherwise you'll end up as one of those "bankrupt with 100k income" cases.


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## MoneyGal (Apr 24, 2009)

...where did I say "learning about money" = "investing" only?  (And how does learning about investing only = ending up with "$100K in income but bankrupt"?)


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## Maybe Later (Feb 19, 2011)

I think being conscious about your money - spending as well as saving and investing will take you far.

Spend your money on what you find important. Travel, experiences, friends, hobbies ... Whatever. I spent untold amounts on cars, trucks and motorcycles and I don't regret it, but I was spending what I had, not borrowing heavily to do it. Avoid the big long term debt that hangs around. That inclides big student loans. I know several people in their 30's and 40's whose student loan payments (or their spouse's) are still a drag on their cash flow at a time when there are mortgages and kids' educations to save for. 

Stick a little something away for "the future". It doesn't have to be earmarked for something specific now. In our case, those few hundred or thousand dollars (which grew) put away each year when my wife and I (not then married) were in school meant that we could use it for a downpayment when it was time to buy a house and helped avoid CMHC fees. After finishing school and moving countries twice we were happy to be "broke", but that little nest egg was a big help.

Read a bunch and give yourself permission to change your mind at different times as your life dictates. I'm an index investor now, but value/dividend approaches also appeal to me. But having dipped my toe into individual stocks I realized I didn't have as much time as I would have liked to spend on that type of investing at this point in my life and I sold them in favor of a more couch-potato approach. It doesn't mean I will stop learning about it or have ruled it out for the future (in fact our written financial plan mentions this approach specifically down the road) and I consider it a useful learning experience. At your age a good savings habit is probably much more important than the specific investment plan. If you decide that a high interest savings account suits you best right now don't let people dissuade you, but take the time to learn about the alternatives and every so often question if it is still the right fit. 

Finally, do a few ridiculous things that you can get away with at your age that you'll look back at and wish you did when you're 35. For me it would have been deciding to skip summer in the northern hemisphere and spend 18 months as a ski bum (Canada-New Zealand-Canada) that I could have done between undergrad and grad school that may have to wait until retirement now.


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## Eclectic12 (Oct 20, 2010)

MoneyGal said:


> off.by.10 said:
> 
> 
> > Just stash it away.
> ...


+1 ... it is good to accumulate and deal with the risk of emergencies. 

At the same time - learning how the system works, what are the offerings, what are the low cost accounts that offer what you want , in advance when there is no rush is IMO valuable. Finances and investing are no different than any other skill where learning a bit on a regular basis is valuable.

Then too - with practice accounts available for free, I'm not sure that can't learn the mechanics of buying/selling as well as test one's methods in a low risk environment. (I say low risk as since there is no real money on the line so one believe one will be calm in a down market and act differently when there's real money at stake.)




MoneyGal said:


> ... where did I say "learning about money" = "investing" only?


It seemed clear to me that more than investing was meant ... but the OP specified "investing/saving" so 
that might be colouring the thinking.




MoneyGal said:


> ... (And how does learning about investing only = ending up with "$100K in income but bankrupt"?)


I am interest in the answer as well as those I've rubbed shoulders with in this category either believe finances/investing are too complicated so they handed off to an advisor who ran off with it or they addicted to consumption.


Cheers


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## GreedIsGood (Dec 4, 2013)

I have read all the posts here and I do agree with some but I'll state my own opinion anyways.

*To the OP:*
I am 23 years old and just graduated from university so this is still fresh in my mind. IMO, I think that you should concentrate on school and socializing. Just listen to what I have to say.

I don't think you should focus on investing (investing here meaning opening up an investment account for ETF's, mutual funds, couch potato, etc). Just open up a HISA/TFSA and leave your money there. You should start thinking about investments after graduation. Starting after graduation (19 vs 22 or 23) won't make that much of a difference anyways. You will have time to think about saving for short-/long-term then. What you don't have time for is the time that you get in school. This sounds discouraging but after school, you will never be in an area with such like-minded people as yourself. You should invest your time with that instead (and your GPA).

With regards to money, the important thing here is to think about what/how you spend it. Like others have stated, getting in a good habit early is key to saving for the long term. Making plans and budgets are easy; sticking to them is the hard part. But since you took the initiative to look for this forum, I would say you have more than enough discipline.

Maybe this isn't the answer you're looking for but after working FT for almost 2 years now, I myself wished that I had spent a bit more time socializing when I had the chance during university. Good luck!


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## Compounding1 (May 13, 2012)

My general advice to the OP is that small purchases add up and it pays to track your spending (Mint is a great app). Paying $4 here and there for a quick bite to eat or a drink at school might not seem like much alone but it all adds up fast. So pay attention to the little spending just as much as the bigger purchases.

Also, if you plan on buying a car, don't get sucked into buying something you cannot afford just because it looks good. 

And you can still save and have fun, no one says you can't do both! Just set goals that you want to save for and set that money aside first then you can play with the rest.
GL


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## off.by.10 (Mar 16, 2014)

MoneyGal said:


> ...where did I say "learning about money" = "investing" only?  (And how does learning about investing only = ending up with "$100K in income but bankrupt"?)


I'm not saying you did. As Eclectic12 pointed out, I was referring about what the OP wants to learn.

As for the how, I imagine it must be possible to learn about investing and not apply what you learn to yourself. You might say that person did not learn properly of course. I get the point that usually, knowing something about investing means also knowing enough to avoid problematic financial situations (the avoidable ones anyway). But for a young person, I'd focus on learning the later first as it has more immediate benefits.


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## banjopete (Feb 4, 2014)

If I could have a talk with my 19 year old self, I would say do two things:
1. Avoid (needless) lifestyle inflation, of course getting better eating habits, a cleaner room, slightly nicer things is great, but be conscious of usefulness and value.
2. Save a portion of all of your paycheques in the fabulous TFSA vehicle.

To go one further invest it all in a total us market etf, the cheaper the better and let it ride. As others have mentioned time is on your side and if you follow at least the general idea of these two points you'll be so far ahead and comfortable that many options and choices will ultimately present themselves to you as a result.

Even now at 35 I cringe when I think of the money I've earned vs the money I've saved. Just think what saving 10% of everything you've earned could add up to without any interest acting on it. Just think of 15 years of a very average/below average wage of $35,000 is $525,000. Save 10% of that (yes ignoring taxes and all minutiae...) you've got $50k to play with, save 20%, wow you've got $100k.... It's a lot easier to do before you get married, have kids, buy a house, get that brand new car you have to have etc...


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## Eclectic12 (Oct 20, 2010)

GreedIsGood said:


> I have read all the posts here and I do agree with some but I'll state my own opinion anyways.
> 
> *To the OP:*
> I am 23 years old and just graduated from university so this is still fresh in my mind. IMO, I think that you should concentrate on school and socializing ...
> ...


Hmmm ... I wasn't that organised or goal orientated in university and somehow I seem to be one of the few posters who had time to kill on the bus, waiting for friends to show up or as a break from a difficult assignment problem. I really can't relate to the idea that there's no time available except for school work, skill building & socialising. Who knew?


As for starting earlier will make little difference ... YMMV. I was always jealous of my house mate who was in the co-op program. Between what he blew on stereos etc. and slight adjustments to his lifestyle, he could have walked out of university with at least $7.5K, before any interest or gains.

Of course that was back in the stone age when full time with living off-campus could be done, including books etc. for $5K.




GreedIsGood said:


> Maybe this isn't the answer you're looking for but after working FT for almost 2 years now, I myself wished that I had spent a bit more time socializing when I had the chance during university. Good luck!


Building networks is an important thing to do.





off.by.10 said:


> I'm not saying you did. As Eclectic12 pointed out, I was referring about what the OP wants to learn.
> 
> As for the how, I imagine it must be possible to learn about investing and not apply what you learn to yourself.
> You might say that person did not learn properly of course.


Hmmm ... I read MG's point as being "learning about investing only" doesn't equal "$100K income and bankrupt". 

There would likely be some leakage due to mistakes but generally, most I've spoken with in this situation, don't want to learn about saving, how financial products work, budgets *and* investing. Generally, those I know who are trying to learn about investing - have already learned varying degrees of the other parts.

For example, a guy I worked with in the summer commented that before he got into a union with what he considered to be enough of a salary to be able to save/invest, he spent what he had on beer & parties as he figured he didn't have enough to get ahead. Once he started to learn/save, he regretted that he could have been so much further ahead, if he'd had hope.


QUOTE=GreedIsGood;230410] ... But for a young person, I'd focus on learning the later first as it has more immediate benefits.[/QUOTE]

+1 ... though as I say, most I know are drawn into the investing by learning a bit about the other financial info.


Cheers


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## medicboy (Aug 10, 2013)

I've read through all of your responses, thank you for taking some time to bestow your knowledge upon me.
It seems the general consensus would be to open a TFSA and focus on my short term spending while putting 10% of all income into a HISA for future investments.

Some books were also recommended in the "Which one book for the 19 (+-) year old?" thread, ill be sure to check them out.

again, thank you all for the responses


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