If you are new to investing and you don’t know anything about the stock market, don’t worry. I will walk you through all the steps that are required to start investing and make money.

In a nutshell, you need to open an online stock brokerage account, link it to you bank account for money transfers and buy stocks.

But, before you even open a brokerage account, you need to adjust your lifestyle, in a way, so you are
able to save at least 20% from each paycheck. Once you get used to 20% saving rate, increase it to 30% saving rate. Remember, the more you can save, the faster you will accumulate wealth. Make that money work for you and collect your dividends.

Step 1: Open a Brokerage Account

There are many stock brokerage accounts to choose from. If you are banking with TD, RBC, Desjardins, BMO or BNS, you can open an investment account with them. Once your investment account is open, apply for TFSA account. This way you will be able to invest inside of your TFSA account. All capital gains and dividends are not taxed if you invest inside TFSA account.

Things to look out for:
Account fees: Make sure you don’t pay monthly fees for your investment account.
Trading fees: Make sure you don’t pay over $10 in commissions per trade.
Required balance: Look for account with minimum required balance of $1,000.
Minimum monthly trades: There should be no minimum on how many times you trade each month.

Step 2: Fund Your Investment Account

I transfer funds to my account once a month. I find it very convenient. It helps me to stay consistent with my investment purchases. I recommend that you do the same. Set a date to transfer funds to your investment account. 

Step 3: Buy Dividend Paying Stocks

This is my personal recommendation to buy dividend paying stocks, but you should make your own decision what kind of investments and stocks to buy. Stick to profitable corporations and avoid speculative stocks. Do due diligence before you buy anything. Feel free to follow my monthly updates where I share what kind of stocks I buy.

Step 4: Reinvest your Dividends

I recommend that you reinvest your dividends back into dividend paying stocks. Some companies will pay you monthly, some quarterly. In combination with fresh capital and dividends, your purchasing power will grow each month. Keep the momentum going for as long as you can.

Step 5: Document your progress

Keep a spreadsheet to document and monitor your monthly and yearly progress. You can even start blogging about your investment journey. Fall in love with the process and enjoy the growth of your wealth.

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