Investing for beginners: how do you start investing?

Investing Basics

Do you want to start investing? Then you’ve come to the right place at BUX. Whether you are starting from scratch or already have some investment knowledge, we are happy to help you on your way to the wonderful world of investing. Without complicated terms, without stress, but with practical knowledge at this Investment Academy. Let’s start together.

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What is investing?

Simply put, investing is putting your money into something to let it grow. Instead of leaving your money in a savings account, you can invest it in an investment product. For example stocks, bonds or a fund. The goal is for your investment to increase in value over time. Investing involves more risk, but also offers a way to grow your wealth.

Why invest? 4 reasons

You put your money to work

Instead of leaving your money in your bank account, you can invest it and let it grow. Investing ensures that your wealth actively works for you and generates a return.

You combat inflation

Inflation causes your money to be worth less. Investing can help you build wealth that can grow faster with a higher return.

Your money grows with the market

Investing means you can benefit from the growth of markets. Your money can grow along with the value of companies, sectors, or even countries, and thus achieve a return.

You can invest in what matters to you

Investing offers the opportunity to invest in sectors or companies that align with your values, so your money can contribute to your beliefs.

Start investing: the basic principles

With investing, your investment can become worth more over time. But that is not without risk. That is why it is important to know the three steps before you start investing.

1. Invest in what you understand

Investing is a long journey, not a short race. It takes time and patience to let your money grow. Before you begin, it is therefore important to understand how investment products and the markets work. You don’t have to be an expert, but some knowledge helps you make smart choices.

2. Determine your goal and risk profile

Every investor has their own goals. Do you want to retire early, buy a dream house, or save for the future? By having your goals clear, you can create an investment plan that fits what you want to invest in. Also determine how much risk you are willing to take to achieve these goals. Always diversify your investments to reduce risk.

3. Only invest what you can afford to lose

Before you start investing, it is important to understand your financial situation. Look at your income, expenses, and employment status. Ensure you have a buffer for unexpected costs and pay off any debts. And most importantly: only invest money you can afford to lose, so you don’t get into financial trouble.

What can you invest in?

BUX’s investing course for beginners

Are you ready to learn more about starting to invest? At our Investment Academy, you will find useful information to understand the basic principles of investing. The course consists of practical modules that help you invest at your own pace. Let’s begin!

• Module 1: Type of investor
• Module 2: What can you invest in

Frequently asked questions about starting to invest

What is best to invest in as a beginner?

For beginning investors, an ETF (Exchange Traded Fund) is potentially a good start. Via an ETF, you can invest in a basket of investment products, such as stocks. This basket contains dozens to even hundreds of different companies, which ensures diversification and less risk. It is simple and ideal for long-term investors.

What is a good starting amount to invest?

A good starting amount to invest depends entirely on your personal situation. Some people can invest €1,000 monthly, others start with €50. Both are fine, as long as you invest consciously. The most important thing is that you choose an amount you feel comfortable with and that fits your financial goals. Only put in money you can afford to lose!

Does investing €50 a month make sense?

Many people think you can only invest with large amounts, but that is not true. You can also invest just fine with €50 a month. At BUX, you can start investing from as little as €10 a month. Do keep in mind additional costs such as transaction fees. And don’t forget, only invest with the money you can afford to lose!

When is a good time to start?

The best time to start investing is now. Starting early gives you the advantage of compound interest, where you earn a return on previously made returns. Even small amounts can therefore grow in the long term.

How long should you invest?

Investing is something you do for the long term. This gives your money the time and opportunity to grow. When you invest for a longer period, you can wait for your return to recover after a dip. However, if you need money after just a few years, it may be that prices fall during that period, and you may not have enough time for recovery. That is why it is important to align your investments with your financial goals and time horizon.

What are the risks of investing?

Investing always involves risks. The value of your investments can fluctuate, and you can make both a profit and a loss. Past performance is no guarantee of future results. You can lose (part of) your investment, so it is important to only invest with money you can afford to lose.

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Investing involves risks. You can lose your investment.

All views, opinions, and analyses in this article should not be read as personal investment advice. Individual investors should make their own decisions or seek independent advice. This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication.