Blog
October 28, 2020

Investing for beginners - What is investing?

BOTS wants to ensure that everyone in the world has the opportunity to build up a second passive income through investment. Not everyone has experience with investing yet. That is why we are now sharing more information every week in our "Investing for beginners" series.

Investing for beginners - What is investing?
Investing for beginners - What is investing?

Investing for beginners

We're not all investing yet. And that's pretty crazy. By way of comparison: In America, about 50% of all households already invest. In the Netherlands this is only 15%. (Source: ABN Amro)

Now that savings interest rates are close to 0%, and in some cases even negative, saving has become a lot less lucrative. Your money is no longer worth it. If you take inflation into account, your money even becomes worth less every year.

Over the past ten years, the average return on the AEX has been around 10%. So every year your money becomes worth 10% more. A lot more attractive than the 0% savings interest you get from your bank.

Then why aren't we all investing massively?

Investing is "troubled" by prejudice. You could only invest with a lot of money. Or is investing only for men in expensive suits. One of our BOTS app users had exactly these preconceptions, but in the end she is glad that she went overboard. You can read her reasons here.

In the coming weeks we will take you into this world of investment. A world that is not at all as impenetrable as you might think. Because you too can start investing. You don't need bins of money or a very expensive suit for that.

The definition of investment

First things first. Before we start with "Investing for beginners" it is of course important to know what investing really is.

A short search on the internet immediately provides a number of clear definitions.

"An investment is a form of investment in which money is committed for a longer or shorter period of time with the aim of obtaining a financial benefit in the future". Source: Wikipedia

So you invest money to ultimately benefit. Sounds attractive. Especially now that the current savings interest rate has fallen to a low point. And in some cases even negative. Investing thus becomes an attractive alternative to saving.

But how do you make your investment really worth more? Don't you have to invest a lot of money to really benefit from it? Which way of investing suits me? If you're just starting to invest, or you've only just become interested in it, these are probably the questions that come to mind first. If you sit down for an afternoon and let Google do the work for you, you'll come a long way. To help you get started with your questions, we've already done that for you. That will save you a lot of research. So don't forget to follow us on social media, so you can start investing with peace of mind and enough knowledge.

Investing is for everyone

Everyone should be able to invest. And now you can. With BOTS. Together we are going to make the world of investment fairer and more transparent. Are you interested, but your question hasn't been answered yet? Take a look at the FAQ's on our site. Or contact us, we will be happy to explain it to you in person.

The BOTS app is now live

Download the BOTS app on your mobile phone today! For Android click here, for Apple click here.

There is no such thing as risk-free investment. You can lose (part of) your deposit.