To grow money in Canada can be a challenging task, especially with the increasing cost of living and the uncertain economic conditions of recent times.
However, there are several strategies and investment opportunities available that can help you achieve financial growth and security in the Great White North.
In this article, I provide 8 proven ways you can use to grow your money in Canada as fast as possible.
While these tips don’t guarantee you growing your money overnight, they will set you on the right track of improving your wealth.
Let’s get started!
Table of Contents
1. Invest in Growth Funds
Companies that provide higher-than-expected earnings are called growth stocks When you invest in a growth fund, you are essentially buying a portion of the fund’s portfolio.
As the value of these companies increases, so does the value of the fund, and therefore, the value of your investment.
You can invest in Growth Funds through mutual funds or ETFs. Examples of growth mutual funds are highlighted below:
- Constellation Software (TSX:CSU)
- BRP (TSX:DOO)
- Nuvei (TSX:NVEI)
- WELL Health (TSX:WELL)
- goeasy (TSX:GSY}
- Magnet Forensics (TSX:MAGT)
Learn about the best-performing mutual funds in Canada
The following are some of the examples of top growth ETFs in Canada:
Learn more about the best all-in-one ETFs in Canada.
It’s important to note that growth funds are not without risk, and there is always the potential to lose money.
However, they can be a good option if you’re l willing to take on a bit more risk in exchange for potentially higher returns.
It’s also important to consider your investment goals and timeline when deciding whether to invest in growth funds, as they may not be the best option for short-term savings goals.
2. Don’t Put All Your Investment Eggs in One Basket
Diversification is an essential strategy for growing your money in Canada. It involves spreading your investments across different asset classes, such as stocks, bonds, real estate, l commodities, and other alternative investments to minimize risks and maximize returns.
When you diversify your investments, you reduce your exposure to the risks associated with a particular asset class or industry.
For example, if you invest all your money in a single stock or industry, your portfolio will be vulnerable to market fluctuations and changes in that particular sector.
But if you spread your investments across different asset classes, you can reduce the impact of any single asset decline on your overall portfolio.
Investing in exchange-traded funds (ETFs) is an easy and low-cost way to achieve diversification, as these products typically hold several funds in one portfolio.
However, diversification is not a guarantee of profit or protection against loss, and it’s important to do your research and consult with a financial advisor to make an informed investment decision.
- Best Investments in Canada
- 10 Safe Investments With High Returns in Canada
- How to Invest in Real Estate in Canada
3. Diversify Your Income
Diversifying your income means finding different sources of income to generate more revenue streams.
This can be a smart way to grow your money in Canada as it reduces the risk of losing everything if one source of income dries up.
There are various ways to diversify your income, such as investing in stocks, starting a side hustle or a business, or renting out a property.
When diversifying your income, it’s important to consider your personal strengths and interests, as well as the potential risks and rewards of each option.
Check out the following articles for ideas on how to improve your income:
- 15 Legit Side Hustles That Pay Weekly
- 10 Best Online Part-Time Jobs in Canada
- 12 Best Passive Income Ideas in Canada
- 15 Legit Ways to Make Money Fast in Canada
4. Save in a High-interest Savings Account
A high-interest savings account (HISA) is a type of savings account that pays a higher interest rate than a traditional savings account.
When you deposit money into a high-interest savings account, the account provider will pay you interest on your deposit at a rate that is typically higher than a regular savings account.
Examples of high-interest savings accounts in Canada include:
|5.25% promotional savings rate
|5% promotional savings rate
|3.35% and 3.45% on registered accounts
|Hubert Financial Review
|3.30% and 3.35% on registered accounts
As you can see, the interest rate can vary between providers and account types (registered vs registered HISA).
The main advantage of a high-interest savings account is that it offers a relatively safe and low-risk way to grow your money.
Unlike investing in the stock market or other risky ventures, your savings in a HISA is protected by the Canada Deposit Insurance Corporation (CDIC) up to $100,000 per insured account.
- RBC High-Interest eSavings Account Review
- BMO High-Interest Savings Account Review
- CIBC High-Interest Savings Account Review
- TD High-Interest Savings Account Review
5. Avoid Unnecessary Expenses
To grow your money in Canada, it is essential to avoid unnecessary expenses.
Unnecessary expenses refer to the money you spend on things that do not add any value to your life or help you achieve your financial goals.
Start by creating a budget to track your expenses and identify areas where you can cut back. Look for ways to reduce your bills, such as switching to a cheaper phone or internet plan or using public transportation instead of owning a car.
Also, try to minimize your dining-out expenses by cooking at home or bringing your lunch to work.
Another way to avoid unnecessary expenses is by avoiding impulse buying. Before making a purchase, ask yourself if you really need the item and if it aligns with your financial goals. Try to wait a few days before making a big purchase to avoid impulse buying.
By avoiding unnecessary expenses, you can free up more money to save and invest, ultimately helping you grow your money in Canada.
6. Cut Unnecessary Fees and Taxes
Cutting unnecessary fees and taxes is a crucial step in growing your money in Canada.
One of the most significant ways to reduce your expenses is by analyzing your banking fees. If you bank with the bank, there are many common bank fees you do without.
Another way to save money is by reducing your tax bill. One of the easiest ways to do this is by contributing to registered retirement savings plans (RRSPs) and tax-free savings accounts (TFSAs). RRSP helps you defer taxes and TFSA allows you to save and withdraw tax-free.
Additionally, it’s important to keep track of your investment fees, such as management expense ratios (MERs) charged by mutual funds or exchange-traded funds (ETFs).
High fees can eat into your investment returns over time, so it’s essential to select low-cost investment options to maximize your returns.
7. Claim Promotions and Freebies
One way to potentially grow your money in Canada is to take advantage of promotions and freebies offered by various companies.
To get started, you need to keep an eye out for promotions and freebies being advertised by companies.
This can often be done by following them on social media or subscribing to their email newsletters. Additionally, websites such as RedFlagDeals and SmartCanucks are great resources for finding deals and promotions.
When taking advantage of these offers, it’s important to read the fine print and ensure that there are no hidden fees or requirements. For example, a credit card may offer a sign-up bonus but also come with high annual fees or interest rates.
While these promotions and freebies may not necessarily result in significant financial gains, they can still help save money and potentially lead to other money-saving opportunities.
8. Clear Off Your Debt
Finally, clearing off your debt is a crucial step in growing your money in Canada.
This is because debt is one of the top obstacles to achieving financial stability and success in Canada.
High-interest rates on loans and credit card balances can lead to a never-ending cycle of debt that can make it difficult to save or invest money.
To begin with, it is recommended to prioritize paying off high-interest debt first, such as credit card balances.
This will help you reduce the amount of interest you pay over time, allowing you to put more money toward your savings or investments.
Consolidating your debt into a lower-interest-rate loan can also be a smart move. By doing so, you can potentially lower your monthly payments and save money on interest charges.
It is also important to avoid taking on new debt while you work towards paying off existing debt. This means avoiding unnecessary purchases and living within your means.
By clearing off your debt, you can reduce financial stress and improve your credit score, which can have a positive impact on your financial future
More importantly, clearing your debt can help you free up more of your income to save, invest, and achieve your long-term financial goals.