Feb 26, 2026
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What if the real danger to your long-term wealth isn’t one big financial mistake, but the slow leak of countless small purchases?
In 2024, Canadians spent $96.5 billion at restaurants and $27.15 billion on alcohol, according to Statistics Canada.
It’s easy to get swept up in short-lived spending, but the decisions that truly shape your financial future are the ones that continue paying off long after the initial cost.
The challenge is knowing which large investments deserve your attention now, not 'someday'.
Here are four long-term moves that belong in your budget — along with the tools that can help you make the most of them.
CIBC Investor's Edge
Build your own investment portfolio and enjoy low commissions
Retirement savings
Retirement savings may be the most important investment of your life, providing the financial security and independence you'll rely on long after your working years end. Unfortunately, many Canadians are far from prepared.
A recent survey by the National Institute on Ageing at Toronto Metropolitan University, which polled more than 6,000 Canadians aged 50 and older, showed that one in five (22%) said they've saved $5,000 or less for retirement.
The true power of retirement savings lies in time, compounding and discipline. But while long-term growth is the goal, building a cash cushion is just as vital. Without a liquid emergency fund, a sudden car repair or medical bill could force you to dip into your RRSP, triggering immediate taxes and stripping away years of potential growth.
To protect your retirement plan, consider parking enough cash for six to 12 months of living expenses as a cushion in a high-yield savings account where it stays accessible but keeps working for you.
With an EQ Bank Personal Account, you get access to the best features of a chequing account combined with a high-interest savings rate.
When you fund your account and set up a direct deposit, you can earn 2.75% on every dollar deposited into the account.
The account has $0 monthly fees and no minimum balances. Plus, you can withdraw from any ATM in Canada — for free.
Once your cushion is in place, money invested early — and consistently — in tax-sheltered accounts like Registered Retirement Savings Plans (RRSPs) or Tax-Free Savings Accounts (TFSAs) can grow into a substantial nest egg.
These accounts can hold many assets such as cash, individual stocks, mutual funds or low-cost exchange-traded funds (ETFs).
Consider opening a discount brokerage account, like CIBC Investors’ Edge so you can enjoy low commissions on trades and no or minimal account maintenance charges, depending on the size of your portfolio.
Pay no account fees for RRSPs with a balance of $25,000 or more and TFSAs with a balance of $10,000 or more. For non-registered accounts, CIBC Investor's Edge waives maintenance fees if the account balance exceeds $10,000.
With a Regular Investment Plan, you can schedule automatic purchases of stocks, exchange traded funds (ETFs), or mutual funds at intervals that suit your budget. It’s a simple way to stay disciplined — investing a little at a time, without having to watch the market or stress over timing.
Get 100 free trades when you open a CIBC Investor’s Edge account using promo code EDGE2526. Plus, get $150 or more cash back.† Offer ends March 31, 2026.
CIBC Investor's Edge
Build your own investment portfolio and enjoy low commissions
Car purchase
While it's tempting to want that new-car smell, buying a used vehicle is often the smarter move for your long-term wealth.
The moment a new car leaves the lot, it can lose up to 30% of its value in the first year alone. By choosing a vehicle that is even just two or three years old, you let the previous owner absorb that steep initial depreciation.
Cars these days are engineered to last for a long time, with many easily reaching 250,000 kilometres or more with proper maintenance.
Beyond saving on the purchase price, you would also save through lower insurance premiums and registration fees. Since insurance is largely based on a vehicle's value, insuring a used car typically costs significantly less than a new model.
Plus, certified pre-owned vehicles offer added peace of mind because they typically undergo thorough inspections, include extended warranties and often include roadside assistance.
Real estate
Real estate isn’t just about securing a roof over your head. It’s widely known as one of the most effective ways to build long-term wealth.
As you pay down your mortgage, you steadily grow home equity, turning monthly payments into a valuable asset. Property ownership also comes with strong appreciation potential, often rising in value over time.
In real estate, the secret to maximizing your return on investment is well known: it’s all about location, location, location. Choosing the right neighbourhood at the right time is key. Focus on areas with strong growth indicators: quality schools, low crime rates and promising new development.
Equally important is your mortgage strategy. Securing a favourable interest rate, considering shorter amortization periods and making extra payments whenever possible can help build equity faster and reduce overall costs.
About 60% of mortgage holders will face higher payments when renewing in 2025-2026, with increases ranging from 20% to over 40%, according to the Bank of Canada.
Whether you are a first-time buyer or moving to a new home, locking in a competitive rate from the start is essential to protecting your budget, potentially saving you hundreds of dollars every month.
A quick five-minute application with Homewise can help you secure a great rate on a new mortgage.
Their free online tool compares offers from over 30 lenders to ensure you get the best deal available for your specific situation.
With good credit and minimal debt, you’re likely to qualify for the lowest rates available. Just be sure to check your credit score before you begin.
Life insurance
At first glance, life insurance might seem like just another recurring expense. In reality, it serves a dual purpose: providing a safety net for your loved ones and acting as a long-term investment in your family’s future.
While permanent policies offer lifelong coverage, many financial experts recommend term life insurance for its affordability and flexibility.
For example, radio host and personal finance personality Dave Ramsey often recommends that families choose term life insurance over whole life insurance and invest the savings in a tax-advantaged retirement account.
While traditional insurers often require lengthy phone calls and weeks of manual underwriting, new platforms like PolicyMe uses a streamlined digital process to offer coverage decisions in minutes.
This digital-first approach eliminates the need to call brokers one by one, providing a more efficient and affordable path to securing your family’s financial safety net.
You can get an instant life insurance quote after filling out a form with your age, income and smoking status, based on the coverage amount and term length you select.
Bottom line
Once you’ve secured these four major long-term investments, the real question isn’t if you should begin — it’s when.
As Morgan Housel reminds us in The Psychology of Money: 'The highest form of wealth is the ability to wake up and say, I can do whatever I want today'.
Starting sooner brings you closer to that freedom.
Phil is a writer at Moneywise with a background in public relations, financial communications, and copywriting. Educated in Cambridge, UK, he has vast experience creating content for several blue-chip corporations. He enjoys research, and his favorite quote is, "When prosperity comes, do not waste it.
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