Chapter 03 — Money & Finance

How do I start investing?

Open a brokerage or pension account, set up automatic monthly contributions into a low-cost global index fund (total expense ratio under 0.25%), and don't check it. Time in the market beats timing the market.

Follow-up questions

What's an index fund?

A basket that owns a slice of every company in a market index, so you ride the market's overall return rather than picking winners.

Should I invest in individual stocks?

Only with money you can afford to lose entirely, and only after maxing index investing. Most pros underperform the index.

Is crypto a real investment?

Treat it like a speculative asset, not a savings plan. A 1–5% slice of a diversified portfolio is the upper end most advisors will defend.

How much do I need to start investing?

Most brokers now allow fractional shares from a few pounds or dollars. Starting small and automating beats waiting for a lump sum.

What is dollar-cost averaging?

Investing a fixed amount on a fixed schedule regardless of price. It removes timing decisions and smooths your average purchase price.

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