Frankie on Learning to Put His Money to Work #InvestingTruths

“I have this money, and it probably shouldn't just sit here. But what should I be doing with it?"

That's what Frankie¹, a 29-year-old TV personality and founder of a Vancouver-based speech and debate school, remembers asking himself as he started exploring investing a few years ago. “I was making money and saving money, but I wasn't growing my money," says Frankie.

From a young age, Frankie was always good at saving – he remembers tucking away money he received from his grandfather, and saving every cent the Tooth Fairy left under his pillow. He credits his parents' “old-school," savings-first wisdom for the nest egg he's built up over the years. But now, with an eye to putting together a down payment for a home and earning passive income, Frankie wants his money to work harder for him.

Here, Frankie shares a bit about what motivates him to invest, and what he's learning about his finances – and himself.

Knowledge is power:

“I came from a place of not having a lot of money," says Frankie. “We were talking about saving money, and getting to the next day and the next month." Investing was rarely, if ever, discussed in his family, he says. As a result, he admits it felt intimidating and exclusive to the wealthy and well-educated. “The best way to break these barriers is access and information," says Frankie.

Practice makes better:

One of Frankie's first steps on his investing journey was to explore a practice account. “To me, starting a practice account sounded revolutionary. I didn't even know that existed," he says. With $100,000 in practice money, he felt it could take the sting out of the learning curve and create a safe environment to grow his confidence and learn about different investments.

Growth opportunity:

Currently working on maximizing his Registered Retirement Savings Plan (RRSP), Frankie is learning that he may be comfortable taking on a little more risk in exchange for growth potential. “I remember when I was 24 or 25, I was putting money into savings accounts. Any growth was pretty much irrelevant, especially after you weigh in the fees," says Frankie. “I'm looking at stocks now – something that's a little bit more high-risk – that I can hold onto for a longer period of time."

On the move:

Frankie sees investing as an extension of his lifestyle. “Running a speech and debate school while also trying to be the next Ryan Seacrest, I don't have a lot of time to spend managing a portfolio with high-risk investments," says Frankie. “I'm looking for something I can trust to grow in the background without my constant attention." Still, with a few “extra funds" in place, Frankie says he feels comfortable taking on a little more risk with some of his investments. “I have a lot of things I want to accomplish, and I want to invest to make sure that I'm always able to pursue my dreams."

Choice overload:

Frankie admits it's not always easy to make investing decisions. “I feel I struggle with choice overload when it comes to my money," says Frankie. “Some people say invest in properties. Some people say invest long-term, some say short-term." Frankie relies on a network of close friends and family, including his partner, to help him cut through the noise. “I do things that I believe in, but also that my circle believes in."

Never too early:

Now that he's on his way, what would Frankie tell a younger version of himself? “I would say that it's never too early to start investing," he says. “Even if it's a small amount of money, at least you're building the habit of putting money away."

The dream:

Frankie's ultimate goal is to sit back and watch his money grow while he focuses on his life. “That completely contradicts what my dad taught me as a young person: 'Work hard, put in the time.' That's why I've worked endlessly," he says. “I've had probably 24 jobs as a young person from the ages of 15 to 21, ranging from newspaper routes and managing a baseball park, to mystery shopping and singing gigs. I would often put in 80 hours a week."

“Now I have a shift in mindset," he says about money, adding “I didn't understand the importance of putting it to work."

1 Frankie is not an RBC Direct Investing client. He has been compensated for sharing his story.