Starting to invest, this is how you take the first step

You have thought about it many times before. That savings capital sitting idle, could it not yield more? Starting to invest feels like a big step for many people, but it doesn't have to be. You don't need a large capital, no financial education, and no perfect timing. What you do need? A start.

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You need less money than you think

A common misconception is that investing is only for people with a lot of money. In reality, more than 40 per cent of novice investors start with less than 1,000 euros. On many platforms, you can already start with 25 or 50 euros per month. The threshold is now lower than ever.

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In the Netherlands, around 1.5 to 2 million people now invest via platforms, banks, or asset managers. A growing part of these are young investors under 35. They often choose periodic contributions instead of a large amount at once.

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Why periodic investing is smart

By contributing a fixed amount monthly, you don't have to think about timing. You automatically buy more when the price is low and less when the price is high. This spreads your entry point and reduces timing risk because you benefit from every phase, both value increase and decrease.

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Historically, the global stock market yields about 7 per cent gross return per year. Not a guarantee, but an average over decades. Those who start early and remain consistent in their contributions benefit from the compound interest effect. Time in the market beats timing.

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The biggest pitfalls for beginners

Many starters underestimate short-term fluctuations. A dip feels uncomfortable, and the temptation to sell is great. But it is precisely that emotional trading that costs return. Research shows that private investors achieve an average of 2 to 4 percentage points less return per year than the market, mainly due to poor timing.

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Additionally, costs are often underestimated. A difference of 1 percentage point per year seems small, but over 30 years it leads to 25 to 30 per cent less final capital. So, choose low costs and stick to your strategy.

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Saving or investing?

Saving feels safe, but yields little. Savings rates are historically low and in the long term usually lag behind inflation. Meanwhile, that inflation nibbles away at your purchasing power. Investing offers no guarantee, but has historically yielded more than saving in the long run.

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For free assets in the Netherlands, box 3 applies. You pay tax on a fictitious return, but only above the exemption of approximately 57,000 euros per person or 114,000 euros for tax partners. For many starters, this is not yet an issue. And if it does become an issue, you can always start with pension investing, where you achieve returns entirely free of wealth tax.

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Where do you concretely start?

Most beginners choose broadly diversified index funds or ETFs. No individual stocks, no speculation, but a simple strategy that works. Younger investors are also increasingly choosing sustainable or ESG funds.

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At Vive, you can easily start with managed investing. No minimum deposit, low costs, and a personal strategy that fits your goal and horizon. You choose your amount, your frequency, and the rest happens automatically. In the app, you see exactly how your capital develops.

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Do you want to start investing for a specific goal? View the possibilities for goal-based investing or read more about pension investing if you want to build up for the long term.

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