Chapter 2 – Learn the investment basics

The following chapter focuses on the basics of investing. It will look at the different investments and products that exist, as understanding your investments is fundamental to achieve a successful outcome.

The chapter continues and introduces the concept of risk and reward, showing that any potential gains do always come with a risk and that the higher the potential gains are, the more risk you are taking, and therefore the more you could lose.

The focus is then put on time, because this is one of your best friends when investing, not the actual amount that you actually put. The chapter closes with exploring the impact of costs when investing, as this alone may mean to have or not to have, for example, a new house when you retire.

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