A Beginner’s Guide to Investing in 2021

By Remitbee - Mar 25, 2021

People are always talking about the importance of investing for your future and how vital it is that you start young, but it is difficult to find out how you actually begin doing this. We’ve compiled some of our best tips on investing to help you figure out how to become an investor. To start, let’s answer the most basic question: What does the term “investing” actually mean?


Investing is a broad term that covers spending money with the goal of increasing the initial amount put in to make a profit or gain a material reward at some point in the future. This can include financial plans, buying shares of stock, developing a commercial opportunity or purchasing property. Any instance where you spend money now with the expectation of receiving an increased amount in the future, you are investing.

Types of Investors and Risks

While the concept of investing sounds simple, there are many different paths that you can take to accomplish the same goal. If you are a beginner investor, it is important to determine what path is best for you before you do anything with your savings. This will help you come up with your next steps.

First, you have to decide if you want to handle your money personally or not. If you want ultimate control, then actually making purchases and buying stocks yourself is the way to go. Monitoring your investments regularly and staying on top of the investment market can be a full-time job and has a lot of stress associated with it though. This is why many people want an expert like a stockbroker or an algorithm, or robo-advisor, to choose how to invest your money with your approval. These services often take a cut or cost a flat fee though, so make sure you choose carefully.

The next thing you need to decide is how risk-averse you are. If you are deeply uncomfortable with high-risk investments, you should probably put your money into a high-interest savings account or purchase bonds. There is no risk of losing your investment in this case, but you will see slower and overall lower growth of your investment. If you are fine with higher-risk investments, the stock market or real estate purchases are a great option. While you may lose more money in the end, you also stand a chance to gain significantly if you manage your portfolio well.

How to Get Started

There are several key steps for getting started with becoming an investor.

First, you have to budget your time and money. If you are starting later in life, you need to find ways to invest that have a payout sooner rather than later. You also need to decide how much time you can devote to managing your investments when selecting personal management or a stockbroker, etc. The amount you are going to invest is important as well. Making hundreds of thousands 20 years from now isn’t going to help you if you can’t pay your rent this month.

What type of investment do you want to make? Do you want to put your money into a high-interest savings fund or purchase stable bonds? Are you interested in Investing in your employer or purchasing mutual funds, stocks or real estate? We recommend consulting with a financial advisor to settle on the correct path for you here.

Next, you want to diversify your portfolio. Investors rarely have one investment because their career as an investor would be unstable. If you own a large number of stocks in one company and the company goes under, your money is gone. If however you own stocks in a wide range of companies that you’ve purchased over time and own your home, if one company goes under, your other investments can make up the difference. This often includes purchasing stocks and options in different countries. Remitbee’s currency exchange service can be a good tool in this area, as we offer CAD to the USD and USD to CAD currency exchange at an incredibly low rate. Finally, once you get started you need a plan for managing your portfolio. As we mentioned in the previous step, most portfolios grow and become more stable over time. This takes energy and regular attention. Decide if you want to do this yourself or have a broker or financial manager do it for you.

We hope you’ve learned a few tips and tricks for becoming an investor from this guide. Whichever path you choose, make sure you educate yourself and take advantage of financial management resources to answer questions and partner with you along the way. While we don’t purchase stocks, our services can be invaluable for managing a portfolio in CAD and USD, or even other international currencies.

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