Boss: Foundations of wealth

What you get asked

1. BOSS FIGHT! €10,000 sits in cash for 20 years at 3% inflation. What's the outcome?

   Inflation never touches the printed number; it hollows out what the number buys. Nearly half the real value gone: the silent leak from lesson one.

2. €200 a month at roughly 7% for 30 years builds about €240,000 from €72,000 of deposits. What force does the heavy lifting?

   Over two-thirds of that pot is growth on growth. Time is the fuel, which is why starting now beats starting bigger later.

3. Final toolkit check: match each instrument to its essence

   Owner, lender, basket-holder, and the cushion under it all: the four roles behind every sensible starter portfolio.

4. Over 10-15 years, what does the evidence say about actively managed funds versus their index?

   Fierce competition plus yearly fees grind most active funds below the plain list. Copying the list cheaply is the evidence-backed default.

5. Fee finale: over 30 years, €10,000 grows to roughly €72,000 in a 0.2% TER fund but only €43,000 at 2% TER. How many € did the expensive fund's fees devour?

   Roughly €29,000: nearly three times the original stake, lost to a 'small' fee difference. Fees compound just as relentlessly as returns.

6. Final boss move: assemble the complete beginner's playbook in order

   Cushion, gateway, fund, autopilot, patience: the whole league in five steps. You now know more than most people ever learn about building wealth. League 1 conquered! 🐜

The rest of this unit

Brokers, orders, automation: from theory to your first standing plan.

• Choosing a broker
• Order basics
• Automate it
• First-timer traps