Are you saving enough for your age? Amidst job losses and an inflationary environment, savings often take a back seat as your paycheck goes into making ends meet, paying off the student loan, vehicle loan, and credit card loan. Hence, it comes as no surprise that an average Canadian under 35 has average savings of $35,692 in non-pension assets, such as mutual funds, stocks, Tax-Free Savings Accounts (TFSAs), and deposits in financial institutions.
The above number excludes investments in private and employer-sponsored pensions. So, if your savings are above $35,692, you are keeping pace with your peers. If you are falling behind in savings, for any reason, maybe a financial emergency or late entry into the workforce, or employment gaps due to job loss, you can always catch up.
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Keeping up with average savings
The way investing works is that the more time in the market, the better the returns. While you have been slow to pick up on stock market investing, you can keep up with the pace by investing in stocks trading at their dip.
Stock market volatility helps you catch up on two to three years of misses with undervalued stocks. If you max out on your TFSA contributions every year with the right growth stocks, you can earn a 20% average annual growth rate.
How Constellation Software stock can boost your savings
Constellation Software (TSX: CSU) stock is trading at $4,223, closer to its 52-week low. Can you believe this stock touched a $5,300 price in May 2025? Almost a 20% discount comes on the heels of overall weakness in technology spending as companies delay their spending amidst tariff uncertainty. While the global political scenario plays out, with Europe facing recessionary risks and tariffs making everything expensive, Constellation Software continues to compound its cash flow silently.
The private equity firm of small software companies has been increasing its enterprise value by adding new software companies to its constellation. In fact, two of its companies, Topicus.com and Lumine, have even spun off and are trading on the stock exchange. Constellation, being a major shareholder, benefits from the stock price momentum of those stocks as well.
Now is a good time to buy this resilient growth stock for the long term. Because when the economy recovers, Constellation will surpass the $5,300 price and make a new high as investors price in the sales and earnings the new acquisitions bring. At a six times price-to-sales ratio and 27.5 times forward price-to-earnings ratio, Constellation is trading at its lowest valuation in five quarters.
If you recollect, the stock fell 10% in 2022 as interest rate hikes slowed economic growth. However, the stock recovered significantly, surging 55% in 2023 and around 40% in 2024. If you bought even two shares in the 2022 dip of around $1,830, your $3,660 would have grown to $8,470 by now, when the stock is trading closer to its 52-week low.
Now is a perfect opportunity to boost your savings by investing in Constellation. It can make up for a 12-month delay and accelerate your TFSA portfolio.
Investing in Tourmaline Oil for its dividends
Tourmaline Oil (TSX: TOU) stock has surged 6.5% in the last week, riding on the Canadian liquified natural gas (LNG) export opportunity. The Canadian prime minister announced five projects for fast-track approval, of which two were related to boosting LNG exports. While Tourmaline Oil is not a direct beneficiary of the approval process, it stands to gain from the government’s openness to support LNG production and export to different countries.
Tourmaline Oil is Canada’s largest natural gas producer by volume and has a low-cost, high-quality reserve. The growing demand from new export markets could drive the company’s share price. It will share the surplus cash flows from higher gas prices with its shareholders by increasing dividends. Now is a good time to buy this stock while it is still early in the cyclical rally of LNG exports.
