4. Where's the risk?

When you invest your money in the markets, you're exposed to additional risks compared to simply keeping your money in a bank. These are known as "market risks."

These risks can lead to big changes in the value of your money in a short time, and if you need to take out your money at the wrong moment, you might end up with real and permanent losses.

Every type of investment, even those that seem safe like saving accounts or government bonds, has some level of risk – the chance that you could lose some of the money you've invested.

In general, if you want to generate a high income from an investment, you'll have to be ready to take on more risk. However, if you'd rather make sure you don't lose your initial investment, you'll need to accept earning less from the investment. The important thing is to choose a level of risk that you're comfortable with and that won't mess up your everyday finances or get in the way of your long-term saving goals. That's a crucial part of having a good investment plan.

We will mainly focus on low-risk investment strategies using ETFs and Danish Investment Funds to beat inflation.

However, before you invest any money, it is crucial to create a budget. This will help you determine if you can invest and how much you can afford to invest. Don't risk money that you can't afford to lose!