I want to start investing some money...where do I start?

So you've just graduated, and you're going to start rolling in the dough. Or you've simply decided it's time to start saving and investing your money better for the long term. Well here are the basics:

Disclaimer: I'm not going to go into the specifics of each investment option here; these are just going to be general rules to get you going and to get you into the right mindset. In the future, I'll get into what each type of account means and how they work. Also, if you don't know what RRSPs, TFSAs and GICs are...don't worry, I'll get into that stuff later. 

Here are some basics to get your saving started properly:

1. Save 10% of your paycheque and put it in RRSPs. This option is especially great if your employer will match up to a certain percentage of your contributions (usually 3 - 6%). Keep in mind, you can always withdrawal money from your RRSPs to buy your first home. I know you're still young to put away money for retirement, but trust me, the younger you save, the more your money will exponentially grow. Plus, if you don't end up needing to go into your RRSPs for your first house purchase, you've gotten a huge head start towards retiring early.

2. Put any additional savings into a Tax Free Savings Account (TFSA). Banks generally offer higher interest rates on TFSA accounts rather than normal savings accounts. Plus, you can have access to typical TFSA savings accounts at any time as long as you don't lock the funds in. As of 2013, you can deposit up to $25,500 into your TFSA, assuming you have been a Canadian citizen for the past five years.

3. If there is any chance you may want to buy a house in the next 5 years, Do not lock in your money! I can't stress this enough. In this day and age, banks don't offer GICs that offer significantly higher interest rates than typical savings accounts (especially if it's a TFSA). I've seen it time and time again where young people lock in some of the savings they have, and then have to withdrawal it with a penalty because they decided the wanted to purchase a house. Unless you are an incredibly conservative investor and have no desire to purchase a home within 5 years, stay away from GICs, they aren't worth it.

4. Finally,  stick with your plan! You may not be able to get the faster car or the nicer rental apartment, but you'll be happy you stuck with it in the end. A penny saved is truly a penny earned.