1. Do You Know Why You Want to Start Investing?

Before you begin, it is important to understand why you want to invest and what you hope to achieve. By setting clear goals, you can create an investment plan. This plan provides a solid foundation and helps you stay focused, especially when the value of your investments fluctuates and emotions could influence your decisions (which is rarely a good idea in the stock market).

How to Create an Investment Plan: 📊

• Write down your financial goals, such as saving for education, a house, or retirement.
• Determine how long you can set aside the invested money: 5 years, 10 years, or longer?
• Consider the risks you are willing to take. Are you comfortable with occasional drops in value, or do you prefer to play it safe?
• Decide how much money you can and want to invest each month.
• Think about the types of investments you are interested in, such as stocks, bonds, or funds (see tip 2 for more details).

Keep in mind that investing is not a get-rich-quick strategy, despite what some might suggest. In most cases, the value of your investments tends to grow more over time. Investing is therefore usually a long-term strategy. Stick to your plan and avoid acting impulsively when the market rises or falls.

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2. Learn the Basics of Investing

Before you start, it is important to understand how investing works. Learn about stocks (ownership in a company), bonds (loans to companies or governments), and mutual funds (a collection of different investments). Familiarize yourself with the risks and potential returns of various investment options. Generally, higher potential returns come with higher risks of losing money.

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3. Where Can You Buy Stocks?

You can buy stocks through traditional banks (like ING, Rabobank, and ABN AMRO) or online brokers (like DeGiro, Lynx, and Saxo Bank). Online brokers typically have lower transaction fees and provide access to various international markets. However, they offer less personal guidance compared to banks.

Compare banks and online brokers before starting. Consider factors like transaction fees, ease of use, available markets, terms, and service fees.

Steps to Get Started:

• Choose a broker that suits your needs and open an account (this is usually done online). Have an ID ready for verification.
• Transfer money from your bank account to your investment account.
• Use the broker’s platform to search for stocks and place orders to buy or sell them.

4. Start with Small Amounts 🤏

You do not need to be wealthy to start investing. Even small amounts can get you started. What is considered a small amount? With some brokers or banks, you can start investing with as little as €10, €25, or €50. Some brokers even offer "spare change" investing, where every card transaction is rounded up, and the difference is invested.

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Starting with small amounts is a great way to familiarize yourself with investing. It allows you to gain experience and knowledge without risking a lot of money. Once you feel confident, you can gradually invest more.

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5. 🕸 Diversify Your Investments

Once you have set goals, chosen a broker, and deposited your first funds, it is time to start investing. If you want to minimize risks early on, diversification is key. This way, if one investment performs poorly, the impact of your overall portfolio is less significant.

Tips for Diversification:

• Different Companies and Sectors: Do not invest in just one company or industry. For example, do not focus solely on technology but also consider healthcare or food industries.
• Different Countries and Markets: Invest in companies from various countries and markets to avoid dependence on a single economy.
• Mutual Funds and ETFs: These are bundles of various investments, allowing you to spread your money across multiple companies automatically.
• Different Types of Investments: Think about stocks, bonds, or even real estate. If one performs poorly, others can compensate.
• Timing of Investments: Instead of investing all your money at once, spread your investments over time. This strategy, known as "dollar-cost averaging", helps mitigate risks.

Grassfeld: Your Financial Partner

Only invest money you can afford to set aside for a long time. Do you know how much that is? Do you have a clear view of your income and expenses? Grassfeld helps you stay in control of your finances. The free app allows you to set savings goals, create budgets, and automatically categorize expenses so you know where your money is going. You will also receive weekly reports on your financial situation. Download the app now in your app store!