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Savings worth less and start investing? You should pay attention to this

Interest rates on savings are still low, while inflation is rising. Investing can yield more, but there is also more risk. How do you start investing and what should you pay attention to? Joyce Donat of the Consumer Association and investment trainer Rowan Nijboer give tips.

32-year-old Isabelle Buhre from Amersfoort recently started investing. “A year ago I did not think I would invest. When I had more financial room, I became interested. Leaving money in my bank account now yields nothing.”

She has been exploring the possibilities for a few months now. “I read and listen to podcasts about investing in real estate, for example funds, stocks and gold.” The amount of information can be overwhelming. “That’s why I called in the help of an advisor. I can advise everyone to read up well in advance.” 

More need for yield

The Netherlands Authority for the Financial Markets (AFM) has noticed that the number of private investors is increasing. “The number of investing households will increase by 12 percent to 1.9 million in 2021. The need for higher returns was the main reason to start investing last year.”

There is always a risk. When the exchange rate drops, you have to be able to handle it. However, investing always involves a risk, says spokesman Joyce Donat of the Consumers’ Association. “You have to realize that before you start. The instacart stock release date is found online. When the price drops, you have to be able to handle it. If it causes too much worry and stress, investing is probably not something for you.” Investment trainer Rowan Nijboer agrees. “Risk and return go hand in hand. The more risk you take, the greater the chance of a high profit or loss.”

Five steps to get you started

Look at your budget

The first step is to determine how much money you are going to invest. “You don’t have to invest thousands of euros,” says Donat. “You can get started with a few tens.” According to her, it is important to only invest with money that you can afford to lose. “So not with money from your groceries, rent or buffer. That is an unnecessary risk. You don’t want to suddenly have to sell a share at a loss because your fridge broke.”

Determine your goal

Having a clear goal provides something to hold on to, says Nijboer. “You then know what you are investing for and what amount you want to achieve. For example for your pension, a study or the purchase of a new home.”

Which platform do you use?

After you have determined your goal and amount, you start looking for a way to invest. Nijboer advises not to search via Google for a platform where you can open an investment account. “The internet has pretty much been sold to financial influencers, who get paid to recommend certain investment platforms. My advice is to look for a party with a Dutch banking license. Such a license ensures that the government is not allowed to bankrupt this party to go.”

You then open an investment account with your platform or bank. “Then you can get started buying stocks or index funds.” You can do this yourself or, at a cost, you can invest managed by a stock exchange trader. “This can be useful in the beginning or if you really don’t have time to immerse yourself in the stock market or economic news.”

Don’t put all your money on one stock, but choose multiple companies and sectors around the world. As a result, you run less risk and there are more stable returns.

Ensure good spread

You can choose from countless stocks to invest in. Donat advises people to spread your investment well. “Don’t put all your money on one stock, but choose multiple companies and sectors around the world. This means you run less risk and there are more stable returns.”

A tip from Nijboer is to provide structure when inserting. “Try to deposit at the same time every month, for example the first Monday. A fixed amount and a fixed moment provide an overview.”

Patience is a virtue

Finally, Nijboer says that you have to be patient. “Getting rich quick is not an option in investing. You can’t expect to be the best in the world in a short time. You don’t just become a Messi, that takes years of training. Think of it as a long-term project that you can do in ten or twenty years to benefit from.”