The first step into the world of investing is often the hardest. There is a flood of information, an even greater selection of investment opportunities – and at the same time, it is nothing less than your own money at stake. If you want to build up your assets sustainably, you need guidance.

We will show you five key principles that will help you make better decisions – regardless of whether you want to invest in traditional markets or sustainable projects.

1. Think long term

Investments are not a short-term deal. Markets fluctuate, crises come and go – those who stick with it will be rewarded. Historically, success has been achieved by investors who act with foresight and do not get nervous about every price movement.

Long-term investments offset short-term volatility and create real wealth accumulation.

2. Understand risks – and manage them consciously

What happens if your investment fails? That's exactly why you need a feel for opportunities and pitfalls.

Every investment carries a risk. The crucial question is not whether you can avoid losses – but how well you can assess and limit them. Those who invest broadly (keyword: diversification) and familiarise themselves with the type of investment reduce the risk of individual losses. And those who know their personal risk profile can invest consciously instead of speculating.

3. Only invest in what you understand

Complex financial products, opaque models or non-transparent providers? It's better to steer clear of them.

A sound investment decision is always based on the principle: understand what you are buying. What business models are behind the investment? What factors determine its success? What are the framework conditions? If you have a clear understanding of these factors, you can protect yourself from making bad decisions – and from dubious offers.

4. Emotions out, strategy in

When prices fall and everyone is selling nervously, your strategy protects you – like a compass in a storm.

The biggest mistakes are usually not caused by bad markets, but by ill-considered reactions to them. Fear, greed, hype: if you let yourself be carried away, you quickly lose track of the big picture. A clear investment strategy that fits your goals and risk tolerance protects you from impulsive reactions. It also helps you evaluate investments over the long term instead of judging them emotionally.

5. Keep an eye on liquidity and investment goals

Do you want to access your money in two years – or in twenty? Your time horizon has a significant influence on which type of investment is even worth considering.

A real estate project that will only yield a return in five years is unsuitable for short-term goals. Similarly, you should not park long-term capital in daily liquid products that yield hardly any returns. Investing also means discipline in planning and duration.

What does this mean for impact investing?
These rules are particularly valuable when it comes to impact investing – i.e. investments that generate measurable social or environmental benefits in addition to returns.

•    This is because it is not just about market mechanisms, but also about responsibility, impact and transparency.

•    Long-term perspective: Positive changes in society or the climate take time – and require patient investors.

•    Risks: In addition to financial risks, political, social and regulatory factors also play a role.

•    Understanding: Only those who really know what project or business model they are investing in can assess whether the impact is credible.

•    Strategy: Without clear impact criteria, impact investing risks becoming nothing more than a label.

•    Goal & liquidity: Many impact investments are project-based and long-term commitments – this should fit your investment profile.

Impact investing is not the opposite of sound investing – it is a logical further development. Those who take these five basic rules to heart create the basis for financial stability and meaningful impact.