Why One of Tiffany's Most Valuable Investing Tools is Her Network: #InvestingTruths

“I remember when I wasn't as confident with investing," says Tiffany¹, a 28-year-old software developer from Toronto. “I would hear about opportunities through colleagues and friends that now, looking back, I wish I had paid more attention to."

While the tech influencer and model has a few regrets, she says she took away an important lesson from those early days of investing: the ability to find inspiration all around her, including her professional and social circles. She says discussing investments candidly with friends and colleagues helped her build the confidence to flex her investing muscles, understand risks associated with different investments – and even to have a little fun with it all.

“There's a lot to it, but it doesn't have to be this big, scary thing, especially with a few people you trust," she says. Now, Tiffany has her sights set on near- and medium-term goals, including purchasing a property and funding her vacation dreams. Read on to learn about Tiffany's experience when starting to invest, her thoughts on managing risk and how she finds resources she can trust.

Listening up:

Working in the tech industry offers plenty of investing inspiration, says Tiffany, especially when someone in her professional network mentions an innovative technology or new company that piques her interest. “I would say I find 99 per cent of my investment ideas through word of mouth," she says. “Then I'll do my own research. One thing I've learned is that although sometimes the whispers don't lead anywhere, it's good practice to investigate them for yourself at the very least." Check out Where to Get Started With Your Research for ways to research at RBC Direct Investing.

On starting small:

Whether building one's investing confidence or portfolio, says Tiffany, it can help to start small. “Before I started, I thought I needed to invest large chunks of money," she says. “I realized that every little bit helps. You don't need to invest large sums of money right off the bat. It's OK to start small. It's kind of like working out. You can go to the gym a few times a week and the results will add up over time." Plus, she says, “The more you investigate, read and spend time on investing, the more comfortable you become with it. It becomes less daunting." Learn more about the benefits of starting early in Compound Interest: How It Works and Why It's Amazing.

Taking the emotion out:

While Tiffany isn't as emotional in her investing now as she was when she first started, she says she still experiences her share of “Oh my goodness" moments. To avoid making rash decisions, she has a few go-to techniques. For one, she checks her investments regularly – but not too often. “I like to not be in the habit of checking my investments every single day because of my personality." But when she does check and things seem glum in a down market, “I remind myself: there are two sides to that," she says. For the most part, she reminds herself she's in this for the long-haul and has time to ride out market fluctuations, but she also knows it's an opportunity to research opportunities that might allow her to buy on the dip.

Finding (and staying) in her comfort zone:

Starting small had an additional benefit for Tiffany. She says it allowed her to ease into taking on more risk. Now, she categorizes her risk profile as moderate to high, in line with her goals – and that, she says, takes some careful planning. “Before I make an investment, I like to have a clear understanding of the risk associated with it," she says, noting she avoids investments she can't readily research herself. She says she's learned to be more comfortable with the potential of an investment going down for a while, which has come with her increased knowledge about risk. Tiffany says she's also gained a better understanding of diversification. “ I think by diversifying you have a greater chance of growth while minimizing risk to the extent you can," she says. “I may be interested in tech, but I am always open to diversify."

On asking for help:

“One of the things I wish I had been told sooner was to find someone that you really trust, or someone who's been investing for a while, to help guide you," says Tiffany. She turns to her partner, for example, to discuss new opportunities and ideas for her own portfolios. Tiffany says one of her next goals is fine tuning her research skills. “I'm working on being more open and finding different resources that I really trust," she says.

1 Tiffany is an RBC Direct Investing client. She has been compensated for sharing her story.