Your money can work
You have 1,000€ in the bank earning 0.5% yearly. You earn 5€. Boring.
Investing is: giving your money to someone who promises to grow it faster.
How it works
- You have money: 1,000€
- You invest through the stock market
- You wait
- Hope it becomes 1,200€ (earned 200€)
Types of investment
Stocks: A piece of a company. It wins, you win. Funds: Many stocks mixed. Less risk. Bonds: Give money to company/government. They pay you interest. Crypto: Digital money. Very risky.
The magic of starting early
100€ at age 20, growing 7% yearly = 76,000€ at age 60.