Pages

Monday, April 4, 2011

Project Part II: Baby Steps

Even the biggest projects have to start somewhere.  The question is, how should I start?  Part of me is tempted to jump right in and learn from experience, as I find that approach can often produce the quickest results.  The other part of me knows that such a move might be foolish and result in some bad decisions and some lost money.
Because I was in no place to weigh the options myself, I made a post on the Bogleheads forum and asked for some advice.  I suggested myself that I open a tax-free savings account.  There would be two benefits to this.  First, I would practice putting money away that I have earned; always important. Secondly, by the time I know enough to make a calculated risk I would have accumulated enough money to make a substantial investment.
The Bogleheads agreed.  The general response was that saving my money while I learn would be the best thing I could do, thus avoiding making any stupid mistakes (like many of them had made).  
So I have applied online for a “Tax-Free High Interest Savings Account” at TD Canada Trust, and I will begin depositing a few hundred dollars a month as I read a few books.  The interest rate is only 1.5%, but this decision is more so for the discipline than anything else; the rest is simply a bonus.
A good first step, I think.

No comments:

Post a Comment