Investing for beginners

Investing for absolute beginners – the 4-step plan:

Step 1: pay off expensive debt

• Overdraft (10–15% interest): pay off IMMEDIATELY
• Consumer loans: as quickly as possible
• Why? No ETF delivers a GUARANTEED 10% return – paying off debt is the safest return

Step 2: build an emergency fund

• 3–6 months' net salary in an overnight money account
• This is your safety net for emergencies (car repair, job loss)
• BEFORE you invest!

Step 3: start an ETF savings plan

• Open a securities account (Trade Republic, ING, DKB – free of charge)
• Choose ONE ETF: MSCI World or FTSE All-World
• Set up a savings plan from €25/month
• Don't forget the exemption order (Freistellungsauftrag)!

Step 4: stick with it for the long term

• DON'T check the price every day
• DON'T sell when prices drop
• Let the savings plan run – in good AND bad times
• A horizon of at least 10, better 15–20+ years

That's ALL. No need to read 50 books, listen to 20 podcasts or use complex strategies. Simplicity beats complexity.