If you haven’t started investing yet, you might be wondering whether it’s worth it or if it’s something only wealthy people do. The truth is, investing isn’t just for the rich — and it’s not as risky or complicated as many believe. Whether your goal is a comfortable retirement, leaving a legacy for your family, or supporting causes you care about, investing is one of the smartest financial moves you can make.
Why Investing Matters
For most people, the primary motivation to invest is to build a financial cushion for retirement. But there are other benefits too — from creating generational wealth to growing your money in ways that simply saving can't match.
It’s a common myth that you need a lot of money to start investing, or that it’s only for risk-takers. In reality, investing is different from saving: saving helps with short-term needs and emergencies, while investing supports long-term financial goals.
The Power of Compound Growth
One of the biggest advantages of investing is compound growth — the concept of earning returns not just on your original investment, but on the returns themselves over time.
Let’s say someone starts investing $5,000 a year at age 26 into a fund that earns 10% annually (similar to the historical return of the S&P 500). After 40 years, they would have invested $200,000 in total. But thanks to compound growth, their investment could grow to over $2.4 million by retirement.
Compare that to a savings account earning just 2% — they’d end up with only around $440,000. That’s the difference investing can make.
Staying Ahead of Inflation
Inflation eats away at the purchasing power of your money over time. If your money is just sitting in a low-interest savings account while inflation averages 3% per year, you’re actually losing value.
To preserve and grow your wealth, your money needs to work harder than inflation — and that’s exactly what investing helps you do. Historically, well-chosen investments tend to grow faster than inflation, helping you maintain and increase your real wealth.
Passive Income: Making Your Money Work for You
Investing isn’t just about saving for the future — it can also generate passive income today. Dividend-paying stocks, rental properties, and other income-generating investments can offer regular payouts without requiring your full-time attention.
Of course, passive doesn’t mean completely hands-off. Real estate, for example, can involve property management, dealing with tenants, and upfront effort. But once set up, it can provide a reliable stream of income that supports greater financial independence.
Planning for Retirement
Eventually, most of us will want — or need — to stop working. When that time comes, it’s your investments that will provide much of your financial support.
While government benefits like pensions or social security may offer some help, they usually aren’t enough on their own. That’s where retirement-focused accounts come in, such as RRSPs, TFSAs, 401(k)s, IRAs, and others. These allow you to invest with tax advantages and build a solid foundation for your retirement years.
Different Ways to Invest
There are several types of investments, each offering unique benefits and risks. The key is to diversify — spreading your money across various types of assets so you’re not overly exposed to any one source of risk.
The Bottom Line: Just Get Started
The most important step in investing isn’t picking the perfect stock or timing the market — it’s simply getting started. Whether you have $100 or $1,000 to begin with, putting your money to work today sets the foundation for long-term growth.
Markets will fluctuate, and your portfolio may dip from time to time, but history shows that staying invested over the long haul pays off. So don’t wait. Start now, and let time do the heavy lifting.
