I get it. Canada’s housing market feels out of reach for many, wages haven’t kept up with the cost of living, and tariff uncertainty doesn’t help. But those aren’t reasons to give up on building wealth. Financial nihilism, the idea that “it’s all rigged, so why bother,” is a trap.
If you’re responsible for other people’s well-being, the basics start with an emergency fund and term life insurance. Once you’ve got those covered, investing is the next step, and following a few clear priorities can make the process far less overwhelming.
Source: Getty Images
Max out your registered accounts first
Before even thinking about non-registered investing, crypto, gold, silver, or anything “alternative,” make sure you’ve fully used your registered account room.
Registered Retirement Savings Plan: You can contribute up to 18% of your earned income from the previous year, capped at $31,560.
Tax-Free Savings Account: Annual limit is $7,000 in 2025, but your total room depends on the year you turned 18.
First Home Savings Account: If you haven’t bought your first home, you can contribute up to $8,000 annually to a lifetime maximum of $40,000.
These accounts offer tax advantages that are hard to beat, and you should also name beneficiaries to ensure assets are passed on smoothly if you pass away.
Keep it simple with index exchange-traded funds
When it comes to what to buy, I strongly suggest sticking to index funds. They give you broad market exposure, low fees, and remove the guesswork of stock picking.
One option I like is BMO S&P/TSX 60 Index ETF (TSX:ZIU), which has a 0.15% MER and tracks 60 of Canada’s largest, most stable blue-chip companies.
From April 1, 1996, to August 13, 2025, investing in the TSX 60 delivered an 8.38% compound annual growth rate, a 961.41% cumulative return, and turned $10,000 into $106,141 before taxes and fees.
Tune out the financial noise
The 24/7 news cycle thrives on urgency, fear, and hype, but markets don’t reward people for constantly reacting to headlines. Big market swings often have nothing to do with the long-term value of the companies you own.
By tuning out the noise, you’ll make fewer emotional decisions, avoid buying high and selling low, and give your investments the time they need to grow. The fewer decisions you make based on daily market chatter, the better your results will likely be.
The Foolish takeaway
There’s nothing worse than someone giving up and tossing away every paycheck on gambling or risky bets, hoping for a lucky break. That’s not a strategy, especially if you’re responsible for others. Build the basics, use your registered accounts, and invest steadily in quality, low-cost ETFs. It’s boring, but boring builds wealth.
