Foundation guide · Financial education

First steps in investing

Do not begin with “what should I buy?”. Begin with the role of the money in your family, when you will need it and the loss you could absorb without destabilising the plan.

Reviewed 13 August 2026 · about 10 minutes

Before you invest

An investment is not an emergency fund. For money your family may need soon, access and stability matter more than a possible return.

Your monthly flow is clear

You know what comes in, what goes out and what can leave the budget without pressure.

You have an accessible reserve

Unexpected costs do not force you to sell an investment at a bad time.

Expensive debt is under control

Compare the certain cost of debt with an investment return that is never guaranteed.

Seven decisions before the first investment

  1. 1

    Write down the goal and date

    “For a child's education in 12 years” is more useful than “I want to save”. Note an approximate amount, date and how flexible the goal is.

    Question: what happens if you need the money earlier?
  2. 2

    Separate time horizons

    Money for the coming months, medium-term goals and distant goals have different liquidity needs and can tolerate different levels of variation.

    Do not lock away money you may need soon.
  3. 3

    Understand risk in money, not only percentages

    A 20% fall means 2,000 on an investment of 10,000. Ask whether you would keep the plan or sell in fear. Higher potential return generally comes with higher risk.

    Past performance does not guarantee future results.
  4. 4

    Know the role of the main categories

    Cash and deposits emphasise access and stability; bonds are loans to an issuer; shares are ownership in companies; funds group multiple assets. Each has its own risks, costs and rules.

    Describing a category is not a recommendation to buy.
  5. 5

    Diversify without confusing quantity with diversification

    Spreading money across assets can reduce dependence on one issuer or sector. Several products holding the same things do not automatically create diversification.

    Diversification can reduce risk but cannot remove the possibility of loss.
  6. 6

    Add up every cost

    Check trading, management, currency conversion, custody and withdrawal fees. Costs reduce your result even when they look small.

    Read the key information sections on risk and costs.
  7. 7

    Check the provider before sending money

    Use national or ESMA registers to confirm the firm is authorised and active. A polished site, influencer or popular app does not replace authorisation.

    Stop if you are rushed, pressured or promised high returns with little or no risk.

Your one-page plan

Complete these sentences before opening an investment account:

  1. Our goal is…
  2. We expect to need the money in…
  3. We can invest… regularly without touching our safety fund.
  4. A temporary fall we can tolerate without abandoning the plan is…
  5. We understand the product, risks, total cost and withdrawal rules.
  6. We checked the provider in an official register.
  7. We review the plan yearly or after a significant family change.

Reasons to stop

  • guaranteed or high returns with little or no risk;
  • pressure to transfer money immediately;
  • unsolicited contact by phone, messaging or social media;
  • the firm is absent from an official register;
  • loss, costs and withdrawal cannot be explained clearly;
  • you must recruit others to earn money.

Official sources and verification

This guide uses principles published by authorities, not product promotion. Open each source for current detail.

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