How to start investing: your first €100 without beginner mistakes

A beginner's most common mistake isn't picking the wrong stock. It's the wrong order: investing before having a reserve, or the opposite — waiting years for the "right moment" that never comes. Yet the order of steps is simple and the same for everyone.

The short answer

• Before investing: expensive debts paid off and a reserve covering 3–6 months of expenses.
• For a beginner, a broadly diversified ETF is the most sensible choice — not individual stocks or crypto.
• More important than the product is regularity: a fixed amount every month, automatically.
• Only invest money you won't need for at least 5 years.

Step 0: what must be done before your first investment

• Pay off expensive debt — consumer loans and credit cards charge more interest than investments earn long-term. Paying them off is a "guaranteed return".
• Build a reserve — without it, an unexpected expense forces you to sell your investment at the worst moment.
• Clarify your horizon — money for a flat in 2 years doesn't belong in stocks. Investing is a 5+ year game.

Where to invest as a beginner

For most beginners the answer is the same: regular investing into a broadly diversified equity ETF (for example one tracking the MSCI World index). You don't pick companies, you don't time the market, and fees are low. We covered the details in our article ETFs for beginners.

• ETFs via a broker or investment platform — lowest costs, most personal responsibility.
• Managed portfolios (robo-advisors) — more expensive, but hands-off. A reasonable compromise for a complete start.
• What to avoid at the start: individual stocks, crypto, leveraged products and anything promising a "guaranteed return".

Three steps for this month

• 1. Calculate your reserve — if it doesn't cover 3 months of expenses, finish that first.
• 2. Choose a platform and compare total annual costs (TER + purchase fees), not the advertising.
• 3. Set up a standing order for a fixed amount (e.g. €50–100 a month) on payday — and let it run.

Try it risk-free

In the Ferrata simulator you can walk through the investment decision for real — including what a market crash in year three does to your money. No registration, free.