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Sharing is caring: 8 important tips to start investing

Published August 31st, 2022

For everyone who hasn’t taken the plunge yet, but would finally like to start investing their money in a sustainable way and making it work for them: here are our eight valuable tips to help you make your first investment:

1. First things first: Only ever invest money that you can do without

Pay off all your debts before making your first investment and set aside a rainy-day fund of at least three net monthly salaries. This is important to ensure that you don’t immediately have to fall back on the money you have invested for any unforeseen costs that may crop up.

2. Get things clear in your mind: What is your investment goal?

Do you want to go on a big journey in a few years, buy a house with an apple tree in the garden or build up a nice little nest-egg for your retirement? Be clear in your mind about why you want to invest your money and what your goal is as that’s the only way you can decide which investment product and strategy will help you achieve it.

3. Knowledge is key: Don’t invest in investment products that you don’t understand

Before buying a product, look at exactly what you are buying, what risks it entails and how much it costs. It is important to understand what you are investing in. Only then will you know whether it aligns with your needs and the options available to you. To find this out, it’s important to ask yourself questions such as: what is my goal and how long will I be able to leave the money invested?

4. Values check: Is the investment product actually sustainable?

Does the product align with your ecological and social values? Sustainable investments steer your money so it can work for the future – yours and the planet’s. It’s important to take a closer look here and not just rely on the “green” labels and abbreviations that are used. If you’re unsure: read our guide to recognizing the greenwashing of investment products here.

5. Don’t fear a crash: Stay cool, calm and collected

Share prices rise and fall on the stock exchange all the time. And that also happens with the money you invest. But when they do take a tumble, you shouldn’t get nervous and frantically sell your shares. That’s often how people end up losing a lot of money. It’s usually worth sitting out fluctuations, so the best thing to do is take a deep breath and wait!

6. Minimize the risks: Don’t put all your eggs in one basket

Spread your money rather than investing everything in one product like a single share. As soon as you start dividing your money between different investments, you will be in a better position to balance out fluctuations – with a product that invests in several companies, for example, like an equity fund, or by having several investments in different investment products.

7. Don’t forget to apply for a tax exemption order!

Once you have opened a securities account and decided on a product, you can get started. But make sure you set up a tax exemption order for capital gains as soon as possible because that can save you a lot of money: if you are single, you do not have to pay tax on capital income up to €801 per year and for married couples the amount doubles to €1,602.

8. The time is now: Don’t wait for the right moment, just get started!

You shouldn’t wait for the perfect moment to start your investment journey because there isn’t one. Really! For investments over a longer period, it doesn’t really matter at which point in time you start. But you should start as early as possible. So what are you waiting for?!

With plenty of tips and in-depth information here in our online Magazine, we will accompany you on your journey to your first investment and beyond.  

Please note: This text does not contain any investment advice, purchase recommendations or sale recommendations.

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