🏛 Basics Of Investing


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The Basics Of Investing: A Beginner-Friendly Guide

Before you start to invest, you should understand the basics of investing. Learn more about investing with this beginner-friendly guide.

According to a 2021 study from Charles Schwab, 15 percent of US stock market investors started investing in 2020. You might also have considered to begin investing recently but, like most of teens, feel lost or overwhelmed by the amount of available information about the topic.

The aim of this guide is to teach young beginner investors the basics of investing. This guide will dive deeper into differences between investing and other related activities, like saving, trading, or gambling. You will also learn how and why investing works, what types of investments exist, and what investment risk is. Finally, you will learn you some practical advice on best practices to start investing.

While we will touch on different types of assets that you can invest in, this guide will not cover specifics of investing in them. Instead, we will focus on the fundamental concepts that every beginner investor should understand before they start learning about specific asset types, like stocks, exchange-traded funds, or bonds.

In this beginner-friendly guide, you will learn the following:

  • What is investing?
  • How does investing differ from saving and trading?
  • Is investing like gambling?
  • What is the difference between an active and passive investing strategy?
  • How do investors make money from their investments?
  • Why does investing work?
  • What types of assets can you invest in?
  • What is the difference between traditional and alternative investments?
  • What is the risk in investing?
  • How does inflation impact your investments?
  • Why should you invest?
  • When is the best time to start investing?
  • How much should you invest?
  • What rules can you follow to become a successful investor?


This beginner-friendly investing guide contains the following chapters.

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Before you start to invest, you should understand the basics of investing. Learn more about investing with this beginner-friendly guide.

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What Is Investing?

Making your money work for you is a significant step to financial independence. But what is investing, and how can you get started?

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Saving vs. Investing

Saving and investing are two essential investing strategies to reach your financial goals. But when should you save, and when should you invest?

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Trading vs. Investing

You might be confused about the difference between trading and investing. However, there are clear differences between both strategies.

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Gambling vs. Investing

Many people believe the stock market is a casino, but there are significant differences between investing and gambling.

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Active vs. Passive Investing

When you start investing, you can choose between an active and passive investing approach. But which one is better to become a successful investor?

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Making Money

Investing is a great way to make money and reach your financial goals. But how do investors make money from investing?

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Power Of Compounding

Compounding is a powerful investing concept, and without it, you won't be able to build wealth. But how does compounding work, and how can you use it to your advantage?

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Time Value Of Money

The time value of money is an often-overlooked key investing principle. But how can it help you to make better investment decisions?

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Asset Classes

Asset classes are the building blocks of your investment portfolio. In this chapter, we will explore the seven most important asset classes.

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Traditional Investments

Most beginner investors start investing with traditional investments. This chapter explores what traditional investments are and how they compare to each other.

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Alternative Investments

Alternative investments have been around for a long time, but their popularity has grown recently. Should young beginner investors invest in alternative investments?

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Risk In Investing

Investing always carries some risks. What are the most significant risks for individual investors, and what risks will you encounter when investing?



The negative impact of inflation on your investments is often underestimated. However, the general increase in prices impacts everyone, including investors.

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Reasons To Invest

Investing is one of the best ways to grow your money and build your wealth. In this chapter, we outline seven reasons why you should start investing.

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Starting To Invest

People invest to achieve financial goals and build wealth. But when is the best time to start investing?

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Financial Goals

A critical step to successful investing is to have a plan in place. But what are investing goals, and how do you set them?

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Investment Contributions

Once you define your financial goals, you should understand how much you need to invest to reach them. However, the answer is not as simple as it may seem.

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Successful Investing

Once you know the basics of investing, it's time to start investing. These 14 rules will guide you to become a successful investor.