“Every month I invest 150 euros for my daughter. If I invest wisely later, she will become a millionaire.

What should young people do with their money in 2023 if they can save any? Saving pays only moderately. charlotte Van Brabender, Money coach The woman behind @slimsparen advises you to start investing in your diapers. And: “My handbags hold their value.”

You’re very skilled at the stock market, but aren’t your margins becoming increasingly slim? Famous magazine like The Economist Young people openly warn that the golden age of big profits is over.

“Oh yeah? Maybe the golden years are yet to come? Bankers are predicting some tough years in the stock market, but you can never predict that with 100% certainty, right? The only guidance you have is your historical return. If you invest for the long term, don’t You can still make good profits.There are ETFs that have gained 9.4 percent in recent years (An ETF or exchange-traded fund is an investment fund, for example a basket of securities, that tracks a specific index, for example the Bel20 or Commodity Index, ed.).

“Many economists – not least – predict that artificial intelligence (AI) will make the economy go much faster. In any case, the economy, and therefore the stock market as well, is growing faster than inflation.

Is it better for young people to save to buy a house or start investing?

“I get this question quite often. I understand that you dream of a place of your own, but at the same time you also dream of your own investment portfolio. Especially since your pension is not an unattainable proposition.

“The day you receive your group insurance and statutory pension, you will suffer a financial loss of 30 percent on your standard of living. If you have not invested, you are in for a bad surprise. A retirement home can easily cost €2,500 a month, which is often more Of the amount of house you want to buy as a young person. Many young people are already unable to afford this loan. Conclusion: It is better to start investing the money you get from your mom and dad before your first job.

Don’t you want to basically promote your own business model here? You brand yourself as an “influencer” and provide investment advice for a fee.

“Of course not. I give away a lot of content for free. I just had lunch with three bankers and they thought I was crazy because I shared so many ideas for free. My job is not to sell my course. My job is to get everyone to invest thoughtfully. People are better off reading my blogs instead Who pays 2% per year in management fees for mutual funds in banks These funds in banks often perform less well than the general market.

“Instead of a pampering account, it would be better for young parents to open an investment account for their children. Ideally, when all the children leave home, they are encouraged to invest this money themselves. At least that’s what I’ll do with my daughter. Every month I invest 150 euros in her. If you invest wisely later, you will become a millionaire.

“So it is better to spend your first year on investments than on a car or your own contribution to buying a house. First realize the investor’s dream, and only then move to real estate.

What should young people do without a piggy bank at home?

“They can try to save €20 a month. If you choose an ETF with an 8 percent return, you will have €150,000 after 50 years. This is already a great addition to your pension.”

Figures from stock exchange watchdog FSMA show that the number of young investors is growing rapidly. How do you explain that?

“Our generation has seen inflation firsthand and therefore understands its impact. Saving has become discouraged. Given the crazy property prices, I also fear that we will increasingly develop into a renters’ market, as is the case in the Netherlands, and that young people will have to earn a return on their meager savings.” In other places.

“I worked full time for many years and did odd jobs on the weekend, and I still couldn’t make ends meet. Only when I was very disciplined and set aside a small amount every month for investments did I break out of this cycle. You have to put aside your current happiness for happiness Long term. Investing also made me realize that I was getting carried away with materialism. As I got older, I realized: I feel happier when I get 1,000 euros at the show than when I get 10 new dresses.

Isn’t it just materialistic to fill your days with stock quotes?

“I spend five minutes a month on the stock market. I hope this will eventually allow me to work less and spend more time with my daughter. Is this material? Passive investing is the solution for me. Bankers say it is better to communicate with them because they know everything and follow everything Something, I say: Dear young people, learn for yourselves and invest in yourselves!

Don’t you make it too easy?

“No. I keep repeating: Find a product that suits you. Inform yourself! Many young people tend to buy stocks. There is nothing wrong with that, but stocks require a lot of damned work. You have to choose them, follow them and do analyses.

“I don’t want to set financial advice in stone, I just want to show people that there’s so much more to it than just that old savings account and that brick in their stomach.

“It is very positive that ‘learning to invest’ has become a teaching goal in secondary education. Schools can help break down the taboo surrounding financial matters. Now banks are eagerly exploiting the ignorance of their customers. Belgians are even more likely to get divorced than change banks. They are too afraid to Take action themselves. Young people in particular must overcome this fear. I want to dispel the prejudices about investing that they heard at home.

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“Investing is dangerous” or “Investing is only possible with a lot of money and a lot of time”. I was raised this way myself. My father especially insisted that I study well. I obtained two master’s degrees in criminology and public administration. In fact, given my interests “I should have studied economics, but I went in a different direction because I heard at home that money was dirty. The money had to be covered. In many Flemish families you see the same mentality regarding money. Young people have to resist that.”

“Before you invest, you also have to know what financial personality you have. You have to understand your relationship with money. Your financial personality is partial nature And partly Care. A typical example: Your parents were never home, but their credit card was always available. As a result, you associate love with money, and then you will try to fill your loneliness with shopping. If you understand such mechanisms within yourself, you will make fewer financial mistakes. I have a personality that is worried about money. I only feel safe when I have 600,000 euros in my investments. The more money I make, the more anxious I get. If you know this about yourself, your financial stress will also reduce.

You invest heavily in ETFs yourself. What risks do these funds suffer from?

“You’re never allowed to be there sucker In the field of investment. Check costs, operator, exchanges and exchange rates carefully. For many young people, something like a bolero (KBC Investment Platform and Company, Edit.) Very expensive because the bank charges a lot of costs. There are already brokers with transaction costs of 1 euro. This is more suitable for small quantities.

“Several bankers had already asked me to set up an ETF myself and asked me about the capital of my followers. When they heard that they could only save 20, 60 or sometimes 100 euros a month, their interest quickly waned. (He laughs) Another thing: you will never be happy and you have to be patient. Only after twenty years with a return of 7 to 8 percent per annum will the accumulated interest benefit you more than the initial capital. So make sure you last twenty years. Preferably much longer than that.”

Should young people buy government vouchers?

“Certainly young people who can do without their money for years shouldn’t look at government bonds. Bankers use this rule: Invest the number 100 minus your age in stocks. For example, if I’m 33, I should invest 67 percent in stocks. Whenever The older you get, the less money you invest in stocks and the more you invest in bonds.I think ETFs are a better alternative than stocks.

Why not choose ethical funds that carry the ESG stamp? This sounds ideal: you make money and think you’re saving the world.

“A lot of young people, especially women, ask me questions about ethical and sustainable investing. I always say: stay critical. Just because a fund has an ESG stamp does not mean it is a good investment. Plus: these products are often more expensive because they are so popular.” Always check which products are actually included in such a fund. Some funds with the ESG stamp simply sponsor the oil industry.

I once invested a lot in cryptocurrencies. Would you do it again?

“I lost a significant amount of money when the FTX cryptocurrency exchange went bankrupt. I hope to see some of that money recovered, but that could take a long time. I have simply lost most of my cryptocurrencies.

“You won’t hear me say that cryptocurrencies are a scam or a pyramid scheme, as many top bankers claim. But it’s a wild world with many cowboys. If you don’t know what you’re doing, you’re at risk. I wouldn’t invest more than 5 to 10 percent of “My wallet is in it again.”

And NFTs? Are they as exciting and volatile as cryptocurrencies?

“If you don’t know about art, stay away from it. It’s really a niche. Art dealers know exactly what collection has value and why it can hold its value. But there is so much art on the market that a normal individual, like me, wouldn’t pick up a Picasso.” If you look at it as a game of chance, I would say: Go for it. But never consider it a guaranteed investment.

You bought yourself a Chanel handbag as an investment. Should young people invest their money in such things? Collectibles Valves? In handbags, wine, whiskey, and old cars?

“My handbags will retain their value. If I later pass them on to my daughter, she will be able to sell them for the same ‘purchasing power’ I bought them for. I also enjoy my handbags very much. I don’t leave them in a bag in my closet.

“I spend money very consciously. Clothes and gadgets are liabilities that lose value very quickly. I can hardly spend any money on that. Young people are overloaded with TikTok videos full of beautiful things. My message? Just let it go.”

(swallows briefly) “My father died two weeks ago. At the funeral I received a lot of flowers. I thought this was a shame. The flowers are the biggest Legal liability located there. I prefer having money because it makes life easier. I can invest money and spend it consciously on experiences. I never go to the same restaurant twice, because I think it’s a waste of money. Your second experience rarely exceeds your first experience.