Investing, that’s not for me, you might think. Or maybe you don’t believe in the value it can bring. This article is an introduction to investing in stocks and bonds, and also covers index funds and index tracking ETFs. Those can be used to invest in a broadly diversified portfolio.
An Introduction to Investing
Let’s start with the basics. To get comfortable with investing your hard-earned money, you must first truly know what investing actually means.
Investing is the practice of buying appreciating or income yielding assets. In much simpler terms, you use money to buy things that make you more money in return.
The key words here are appreciating and income yielding. Just buying stuff doesn’t count as investing. Later on in this article I will briefly cover alternative investments, but for now please don’t consider that € 500 bottle of whisky an investment.