GLOSSARY TERM
Investing
Investing means putting money into assets such as stocks, bonds, funds or ETFs with the goal of growing its value over time.
What does this mean in practice?
Instead of leaving all your money in cash, you use part of it to buy investments that may increase in value or produce income in the future. Investing involves risk, which means the value can go up and down, especially in the short term. The basic idea is simple: you accept some uncertainty today in order to give your money a better chance to grow over the long run.
Example
You invest €100 each month into a broad world index fund. Over time, the value will move up and down, but if you stay invested for many years, your money has a chance to grow much more than if it stayed only in cash.
Why it matters
Investing is way to build wealth over time, protect money from inflation and work toward bigger future goals such as financial security or retirement.
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