The Germans are investing more and more money in their homes
Economic Crisis, Deflation and Inflation - all these terms circulated through the media in recent years, spreading fear and terror among German homeowners who no longer invested their hard-earned money in their own home, but rather save it. However, due to the low interest rates , the Germans were finally relieved of the desire to save - and that's a good thing. Increasing consumption benefits the economy, and thus the consumer as well.
When the purse is looser
Ultimately, even the last stubborn man realizes that eternal savings do not make sense. According to the consumer confidence index of the Gesellschaft für Konsumforschung (GfK), citizens expect a higher income and accordingly want to save less. While the numbers in the media cause cheers, the situation is not quite as pleasing, after all, there is currently continuing economic slowdown. But it is precisely in these times, it is important to invest his money meaningful. If you can afford it, buy a home now. How the article real estate as an investment - top or flop? By FinanceScout24, real estate is probably the most secure investment today. Consumers who already own a home will hardly be able to afford another. They do not have to, but instead they can put their savings in the appreciation of the house.
Interest frustration makes for a rethinking of consumers
Ever since the economic crisis of 2008, many consumers have lost their confidence in banks. At that time the investment bank Lehman Brothers insolvency had to announce. Meanwhile, the Germans have lost the desire to save and they invest their money in profitable purchases. But there is another reason why more and more people are no longer entrusting their money to the bank. Saving in the classic style, such as daily allowance or savings accounts, makes little sense due to low interest rates. Interest rates are currently so low that they will not even offset inflation. The creation of the savings thus makes no sense, after all, the saver would lose money. Even the ECB's interest rate cut to the historically low of 0.5 percent will hardly change this situation.
The renovation fervor spreads
That Germans are now more inclined to invest their money is now clear. But where does the money go? Best in the home . Consuming Germans clean up their homes, make them more energy-efficient thanks to new technologies and at the same time increase the value of their property - an investment for life that will benefit many generations. Among the most popular renovations is the modernization of the roof and the facade. But also investments in the field of renewable energies is becoming increasingly popular. Especially the latter is extremely interesting thanks to numerous promotional programs for consumers. But even small investments in the house, such as a new kitchen, a new television, or a new heater are worthwhile investments. Even if the Germans fear for their savings, investments are good, but not exaggerating and invest the money in furniture and Co., they still need to make reserves. Especially those who still have debts to the bank and thus are not yet a fully-fledged homeowner, must build a financial cushion . If one of the family members loses his job or becomes ill, the existence of the entire family is threatened if sufficient funds are not available. As a
, investing in overnight or fixed-term accounts is worthwhile. The former have the advantage that the money is always available, but the interest rates are lower. On the other hand, time deposit accounts offer higher interest rates, but the money is not always available. Investing in stocks and securities is likely to be too risky for most consumers, even if they have great odds. And how much of your own income should you save? There is no golden rule. It always depends on the individual needs. Anyone who dines regularly in the restaurant will spend more money than someone who cooks at home. Anyone who spends his entire income to date, however, must change his lifestyle to be able to cover something. It makes sense to initially save about ten percent of the income and thus to check whether you can get along with the remaining money. Of course, if there is room for improvement, consumers can save even more. But do not forget: too large reserves are not worthwhile again, after all, money loses its value due to deflation. The trick is to find the golden mean. Image: © Sergey Peterman / Shutterstock