The savings rate is extremely low in the most countries and in the short term this will probably not increase rapidly. It's not crazy that more and more people are thinking of trying their luck at the fair.
Nevertheless, potential investors must realize that investing is accompanied by the necessary risks.

Source

1. Understand what you invest in

" Never invest in a business you can not understand," says super investor Warren Buffett. Before you start investing, you need to understand what you are doing.

In addition, you need to understand why your investments will be worth more, but also what's wrong. Let you know by a property manager, or search for information, for example, on the internet. For example, you will not be able to stand up for negative surprises, so explains Schilder.

2. Turn off emotions

Many (beginner) investors are lagging according to Paint yield, because they are led by emotions. Well-known examples are the long-term loss of investments in the hope that it will be fine. Also, many active investors tend to take higher risks or act more to make losses quicker.

3. Limit the cost

Investment costs have fallen sharply in recent years and transparency has increased. However, there are still major differences between asset managers and brokers.

Expensive providers often have a promise of higher returns. But promises and past performance do not provide a guarantee for the future. You're sure to pay high costs. In the long term, the growth of assets is severely limited by high costs, according to Schilder.

4. Invest for the long term

Investing for the long term. It is therefore unwise to invest for one or two years. The chance of losing money is then too big. An important rule of thumb when investing is: the longer you invest, the greater the chance of a positive result. Time ensures that you can make up for any losses and build a good return.

5. Hold a financial buffer

It is always wise to hold a financial buffer. Suppose the washing machine is running, the boiler has to be replaced, or your car is sputtering on the side. You will of course always see that the investments are in no time at a time. It's nice to have a jar for unforeseen circumstances, says Schilder.

6. Accept risks

Without accepting risk, you can not get extra returns. The higher the return, the higher the risk and vice versa. The expected return on investment is higher than on a savings account. You also run more risk. Determine in advance how much risk you want and can take and accept the mobility of the stock market.

Thanks for Reading,

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