We start the day once again with an investment theme 👩‍🎓👩‍💻

And it's something that goes pretty much back to basics. I was asked yesterday what you actually need to think about before one invests.

These are a few things that came to mind (feel free to add more in the comments):

• Financial goals: Think about what your short and long term financial goals are and what investments best align with those goals.

• Investment horizon: Think about how long you want to invest your money -> do you have a certain "due date" at which you need it or is it intended as a retirement plan (again, the investment horizon is relevant. After all, it makes a difference if you are only 24 or already 62 😅).

• Risk vs. reward: Consider the potential rewards and risks of the investment types and think about how much risk you are willing to take without "sleeping badly" because of your investment.

• Investment options: Educate yourself about different investment options (stocks, bonds, mutual funds, real estate, etc.) to determine what fits your investment horizon, risk tolerance, and knowledge level (or your willingness to invest time in learning about and engaging with the investment)

• Market trends: Find out about market trends and conditions depending on the type of investment you have previously chosen. Be aware of how each situation may affect your investment decision. Also consider how often your investment decision requires monitoring market trends (see Time Investment item).

• Investment fees: No matter how well your investment performs, fees can greatly reduce profits. Therefore, when choosing a broker, make sure that the broker's fee structure matches your investment type and keep an eye on the possible costs of your invention that can reduce your return (TER, order fees, taxes, etc.).

• Diversification: Never lump everything together to avoid lumped risk. This reduces risk and can increase your potential returns. (Putting everything into one stock tends not to be a good idea - unless you have inside information through your personal oracle or thanks to your palm reading skills and know that the stock will go through the roof tomorrow - then go for it. -> not investment advice!!! 🥸)

• Get some professional advice: You have no idea about nothing? Then get professional advice on various platforms. Some stock market guru can certainly help you make your second million. (Also no investment advice!). Or: You inform yourself about the basics, because that's all it takes to get started. Look through the community here (because there are really mega instructive posts here), watch videos on Youtube (I really like e.g. Finanzfluss, Madame Moneypenny etc.), read blogs, listen to podcasts or get a book about investing. The safest and most popular advice here will probably be: Just start with 25€ in an all-world ETF and slowly get used to the idea and feeling of now being an "investor" in the stock market. 🤟

• Don't try to convince others who just don't want to invest: I know it's an awesome feeling to own your first stock/ETF or co. But now to go around in the circle of acquaintances and get everyone to the stock market and force them to their happiness, unfortunately will not work. Save your nerves - talk about it with the people who show interest and especially don't let them talk you out of it if you're still at the beginning (everyone knows the Telekom stock story). 😅

#investieren
#börse
#grundlagen
#tipps