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2023 Author: Gabrielle Mercer | [email protected]. Last modified: 2023-05-21 12:25
Think about saving NOW? Yes absolutely! You don't need extensive financial knowledge or a mega-budget. THE money bloggers "Lazyinvestors" show how it works.
Too little free capital. Too much fear of bad investments. And first and foremost, no idea how and where best to invest money. There are enough excuses to avoid the topic of pensions. "Wrong", says Martin Eckardt, 37, mastermind behind the German-language financial blog "Lazyinvestors": "Ultimately, the whole thing is not a high level of science, and anyone who deals a little with it can work it out for himself." He founded the platform for those willing to invest with his wife Anna Terschüren, 37, an economist. Two years ago, their penchant for numbers gave them the idea of passing on their extensive knowledge via webinars. And the strategies are well received: 20,000 have already trusted their advice.
How do you start?
Martin explains the high relevance of financial security: "Our generation will have to get by with around 40 percent of the average net salary one day when they retire. It is obvious that this would result in massive cuts in our lifestyle. Therefore: It is imperative to make private provisions."
Basics worth knowing
From insurance to banking products to "investment opportunities" - huge industries make money from retirement provision, says the expert. That is why there are enough products that often appear very opaque. In any case, Eckardt recommends paying close attention to the total return that can ultimately be expected after all deductions. The financial blogger is convinced that building wealth on your own is almost entirely beneficial: "My advice is to invest in large, global equity funds called ETFs. This way you can buy thousands of stocks with a single security and simply participate in the market development without yourself having to deal with the topic too intensively. " There is no getting around a securities account. You can create that either at your house bank or at a direct bank. Eckardt's additional tip: "It is essential to compare management fees and never just buy one share or investment. Once you understand this principle, you will notice that retirement planning is actually the simplest thing in the world."
When to start
Clearly: as early as possible. Because compound interest then has the most time to really develop its power. "It's better to start early with very little than to wait a long time and then have to invest more in order to generate a profit at all." Nevertheless, of course: "Better late than not at all."
What's up with a mini budget?
With ETFs you can start from 25 euros a month and invest in over 3,000 companies with very little. "This is also ideal for people with little money. The strategy applies to everyone, whether high-income earners or students," says Eckardt. Buying investment funds like ETFs is also recommended by reputable consumer organizations such as Stiftung Warentest. But be careful, says Eckardt: "You shouldn't need the money in the next 15 years. What is needed in the near future should never be invested."
The good thing about private provision: You are completely flexible. "If you want, you can make a one-off investment in a fund, as described, if possible also accumulate monthly surplus salary as a nest egg in a savings account and take a break from time to time. This is very pleasant, especially with fluctuating incomes, as the self-employed often experience Final tip from the professionals: "The most important thing is to overcome fears and trust yourself to invest. Nothing comes from anything."