In most cases peoples savings are the money in their bank account and they do not invest it. And because of inflation their money loses its value. To protect your money from inflation you can invest it instead. There are many options available when it comes to investing for Beginners in Germany -for example Bitcoin, Stocks, ETFs and Taxes
When it comes to Real Estate , it is pretty difficult to get started as you need a large amount of money to buy a property and considering most expats do not stay in a single city for a long time , it is not worth it for most of them to buy a property
Commodities ( Gold, Silver etc.)
Buying gold, silver and other commodities also has its issues as you need to store your precious property in a safety deposit box or a secure place
Collectables ( Coins, Pokémon Cards etc.)
You can invest in Collectables like Pokémon cards which have seen a large surge in their demands but you never know when this demand would go away
The stock market is arguably the biggest wealth creating tool ever created. To start investing in the stock market in Germany you need to create an account with a broker and that is called a Securities account or Depot in German. There are many brokers available but it is recommended that you register with a German broker as they handle your taxes for you instead of you handling them yourself. Among the German brokers Trade Republic and Scalable Capital are the most recommended ones out there. Besides these two there is Comdirect, Etoro, Trading 212 and Many more Once you select a broker, create your account you need to verify you account, some brokers accept certain nationalities and that is why you need to check if your nationality is accepted or not before opening an account with them. When it comes to investing in the stock market two of the biggest options are Stocks and ETFs. Stocks are an equity investment that represents part ownership in a corporation and entitles you to part of that corporation’s earnings and assets. An exchange traded fund (ETF) is a type of security that involves a collection of securities—such as stocks—that often tracks an underlying index, although they can invest in any number of industry sectors or use various strategies. ETFs are always recommended for beginners as they distribute the risk on many companies as compared to single stocks whose risk is dependent on a single company.
A cryptocurrency (or “crypto”) is a digital currency that can be used to buy goods and services, but uses an online ledger with strong cryptography to secure online transactions. Much of the interest in these unregulated currencies is to trade for profit, with speculators at times driving prices skyward. The crypto market is very volatile and not recommended for beginners however as a source of diversity one can invest small amount of many which they might not need in the near future.
*None of this is meant to be considered as investment advice, as I am not a financial expert and am only sharing my experience with stock investing. The video and articles are accurate as of the posting date but may not be accurate in the future.