What Is Investing and Why Does It Matter?
Investing is simply putting your money to work so it can grow over time. Unlike saving, where your money just sits in an account, investing helps it increase in value, often faster than inflation.
Here’s the key difference:
- Saving = Protecting your money
- Investing = Growing your money through smart strategies
When money stays idle in a low-interest bank account, inflation slowly eats away at its purchasing power. By investing, you’re giving your money a chance to grow and work for you.
Why You Should Start Investing Now
The sooner you begin, the more your money can benefit from compounding growth. But that’s not the only reason:
- Beat inflation and protect your wealth
- Grow your savings and plan for your future
- Generate passive income (dividends, interest, rental income)
- Save for retirement or major life goals
- Build a safety net for unexpected events
- Create a legacy for your children’s education and future
3 Things to Know Before You Invest
- Set Your Goals – Are you investing for a down payment, retirement, or an emergency fund?
- Know Your Time Horizon – Will you need this money in 6 months, or can you leave it invested for 5+ years?
- Understand Your Risk Tolerance – Can you handle market ups and downs, or do you prefer stability?
How to Start Investing: Step-by-Step
1. Review Your Finances
Look at your monthly income and expenses to see how much you can realistically invest.
2. Build an Emergency Fund
Keep 3–6 months’ worth of living expenses in a safe, easily accessible account. This money should not be invested. It’s your safety net.
3. Learn the Basics of Investment Types
You don’t need to invest in everything at once. Start with a few that match your goals and comfort level:
| Investment Type | Risk | Return Potential | Description |
| Term Deposit | Low | Low | Earn interest with min risk |
| Stocks | Medium-High | Medium-High | Own shares of a company |
| Gold | Medium | Medium | Hedge against inflation |
| Cryptocurrency | High | High | High-risk, high-reward digital assets |
| Funds/ETFs | Medium | Medium | Diversified portfolios managed by experts |
4. Start Small
Even $10 or 100 TL is enough to begin. The habit matters more than the amount.
5. Diversify Your Portfolio
Spread your money across different asset types to reduce risk. This strategy, called diversification, helps protect you from market swings while keeping growth potential.
