“Even at 10 euros a month there is a snowball effect”: Investing is risky, but possible

“I had money for an A book at a pretty low wage. As I looked at inflation, I realized I was losing at the end of the year. Thomas, 22, is a student at PPA Sport. “I’m not really thrifty, but I worked while studying and didn’t want to lose money all the time. But rather invest wisely! Like Thomas, more and more 18-24 year olds are investing and according to Kantar, 40% of them are trying to secure their future and build long-term wealth.

NFT, cryptocurrency, bitcoin or simple life insurance, the possibilities are numerous and some profits announced, especially by scrolling on TikTok, are dizzying. “The new generations realize that we need to invest on their side: Gen Z especially knows that they would not have retirement,” specifies Yoann Lopez, who created Snowball, a newsletter that desacralizes investment and is accessible by subscription but free for students.

On the profile side, some cultivate when they have little money, while others want to invest small sums. Still others “say to themselves that their parents didn’t invest well and that has to be done,” the thirty-something enumerates.

“I tried, I won and I lost”

Above all, “you need a fall protection mattress, even if you live with your parents,” recommends Yoann Lopez. Once savings have been made, you can try to get started. “At 10 or 20 euros a month there is compound interest, so there is a snowball effect: it is small at the beginning, then it grows. »

Some rules to follow to avoid bankruptcy: don’t put all your eggs in one basket and, paradoxically, be willing to lose. “Even if you put 100 euros in it, it’s not a joke, you have to take it seriously,” warns Thomas, who estimates that he invests a maximum of 5 to 10% of his savings: “I was lucky to come across as very qualitative at the beginning, but it was also my basic plan: I took a small portion of my savings, telling myself I only wanted to invest what I was willing to lose. If we invest, it shouldn’t affect our daily lifestyle: if you have one restaurant a month and you lose your money on the investment, you must be able to keep having one restaurant a month! »

So be careful where you put your 20 euros. Stock market, life insurance, old-age provision (yes, yes), the risks are not identical and must be taken into account. “We need to diversify to smooth the risk: by investing in stocks, in gold, and in real estate, when stocks and gold are outpacing the numbers, real estate is holding the house all by itself,” illustrates Snowball’s Yoann Lopez, who also advises making recurring investments: “It is impossible to predict what will happen in the markets and the average will avoid buying high… or buying low. »

Less restrictive than buying a parking lot, which has a higher entrance fee and requires logistics and tenant searches, cryptos or the exchange offer attractive prospects. Valentin, who graduated from Montpellier Business School last August, has been unbeatable since he got involved with crypto about a decade ago. But he returned from his solo experiences. “I tried, I won and I lost. Today I must have reached an equilibrium point, for this reason I decided to stop: the market is very volatile and very risky, you can end up losing most of your investment. ! I hold cryptos, but for the long term. »

An observation that Thomas also makes. “Investing is more medium or long-term, while many young people see it as a casino: ‘I deposit money on Mondays and Wednesdays, if I take money that’s twice!’ Except it’s more like 10 or 20 years! My horizon is 15 or 20 years, so whether the market explodes or loses 90% doesn’t concern me! »

“Investing does not mean becoming a millionaire or staying broke, but something in between”

In France, a large part of learning takes place via networks. “Tiktok, Insta and Twitter are resonance bodies in financial circles. ‘ says Yoann Lopez. Cryptos, bitcoin and even good deals on parking, ideas are being pushed by influencers who have become very visible.

Virtuous newsletters like Plan Cash (7,000 subscribers), Les cryptos de Caro (more than 50,000 subscribers) and Snowball or even Hasheur on Youtube teach about finance and wealth management. They sensitize those who are already interested in the topic and help demystify the financial question and ask the right questions.

When Thomas tested blockchain and cryptos 3 years ago, he wanted to learn it himself. “There are cycles in crypto that repeat themselves every four years: cryptos go up in value and at that point everyone is hearing about it. What interested me above all was the techno behind it. On Youtube he was able to document himself and understand how the key principles worked. “In France we are fortunate to have people doing great work in this area, whether we are experienced or beginners. The ones that offer big scams and the biggest risks are the ones that take advantage of a young audience who are said to be able to make money easily. »

Another piece of advice before diving into the subject, therefore: be wary of the less virtuous side of networks and thus certain influencers. You can easily come across a TikTok account that encourages investments in unreliable products against the background of dropshipping, which some of them make fortunes from.

Fans are disappointed because “they don’t become millionaires and give up, a bit like being disappointed when you see muscular guys on Insta,” Yoann Lopez compares: “Becoming a millionaire in 50 years is easy, but not in 3 months. Investing isn’t about becoming a millionaire or staying broke, it’s about being in between. »

Valentin has a flair for avoiding such plans, he identifies what the influencer is referring to. Most of the time, these aren’t legal products, “so appointments are made on Telegram, and we’re encouraged to pay to access training that doesn’t work.” One piece of advice: do your own research: always do your research before you invest. Many students want to build capital and invest their money, but many are afraid of missing out. [une bonne occasion, NDLR], the famous FOMO, and don’t take the time to educate themselves. There will always be risks and nobody has ever been successful without a strategy or risk management in advance. »

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