We do not need to tell you that the current savings interest no longer represents anything. If you have money in your savings account, the savings interest is almost 0% and even negative with a higher balance. A pity, because your savings will never grow this way. Do you want more return? Then you can invest in shares. But how do you buy shares? And how much risk does it entail? You read it here.
Investing yields more returns than saving
Buying shares can give you much more return than the little interest on your savings account. When you invest in shares, you are buying part of a company, as it were. Shares are certificates of ownership. So you actually become “co-owner” for as long as you have the shares.
You invest for the short or long term. The purpose of investing is of course to close your investment period with a profit when you sell your shares. In the meantime, you share in the profit of the company and you receive a dividend. That's a bonus!
When you start investing, it is important to read carefully. Because no matter how fun and easy it may seem, investing entails risk.
The most important thing to start investing safely is that you choose a responsible amount to use. Make sure you keep some savings on hand for unforeseen expenses. First go “practice”. You don't learn cycling and walking in one day. For example, you could practice with a demo, sort of “fictitious shares”. This way you will become a little wiser in the world of buying stocks.
How do you buy shares?
In principle, you can buy shares of all companies that are listed on the stock exchange. And there are many. Consider, for example, large companies such as Ahold and Google.
The best method is to spread your shares. This ensures that you can invest more safely. Do this by getting in at different times, buying stocks from different regions and investing in multiple sectors.
Do you want to start investing less risky? Then you can also opt for an investment fund. With a share in an investment fund you buy a small part of a diversified portfolio in shares of different companies. This portfolio is managed by a fund manager. If a share in this portfolio goes badly, the other shares in the investment fund may do better. So you spread your risks and the chance of a decrease in your profit.
Where do you buy shares if you want to start investing?
You can buy shares from your own bank. But what is often cheaper to buy shares from a broker. If you are a novice investor, it is wise to do your research in advance before buying shares.
This way you can compare brokers on costs and conditions. One broker has lower transaction costs than another and 1% transaction costs can save thousands of euros in the long term. Examples of brokers where you can buy shares are Lynx, TradersOnly and DeGiro and Binckbank.
How do you buy shares is therefore not the only question you have to ask yourself if you want to start investing. There is more to it and if you want to do it well then you really better read in first. Your goal is of course to make a profit and not lose (part of) your savings through unnecessary mistakes.