Aktienwelt360 » All articles » Savings goal of 10,000 euros reached? 3 smart things you could do with the money now!
Successfully increasing your savings can be quite a challenge at the moment. After all, energy costs have exploded and we are generally struggling with galloping inflation. And that means that many people are left with less and less money that they can put aside.
That’s why I would definitely describe saving 10,000 euros as a step towards financial security. So congratulations to everyone who has just achieved this goal. And this sum is certainly a good starting capital with which you could now do other smart things.
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For further inspiration, I would like to introduce you today to three of what I consider to be the most important options available to you for using the 10,000 euros relatively sensibly.
Earn some interest
Quite a few people are certainly happy when they have achieved a savings goal of 10,000 euros. Consequently, most of them naturally want to keep the money and not make any losses on any investment. Nevertheless, in my opinion, it makes no sense to let your capital sit idle in a checking account with poor or no interest, for example.
Basically, you have two good options here: a current account or a fixed-term deposit. For example, you could invest your 10,000 euros for a period of three years. For this, you would currently receive just over 3% interest per year at a bank with German deposit protection.
You would get roughly the same conditions with a pure call money account with German deposit protection. The obvious advantage here is of course the daily availability of the capital. The big disadvantage, however, is that the interest rates can change at any time.
So if you can do without your money for a longer period of time, a three-year fixed-term deposit would probably be a better choice for you. In this case, you would ultimately receive a guaranteed 900 euros in interest payments for the three years.
Reduce any debt burden
Of course, despite your great savings, you may still have to pay off one or more loans. These debts could be incurred, for example, by buying a new car, renovating your home, or simply by using your credit card too much.
The credit card companies in particular play a rather inglorious role here. Many of them now offer the option of paying in installments. Some of the card issuers no longer even give the customer a choice, and no longer offer full payment of the bill.
As a cardholder, you then have to take action yourself and pay the invoice amount by bank transfer or one-off direct debit. The interest rates of sometimes more than 20% per year that credit card companies charge for possible installment payments can also be viewed as excessive.
Anyone who still has outstanding items at this point would, in my opinion, be well advised to use part or all of the 10,000 euros to reduce any debt burden.
Invest the money
However, if you have a long-term goal, such as saving for retirement or if you simply want to increase your wealth as much as possible, then the stock market could be a third option for you. This is because it has been possible to achieve considerable returns over longer periods of time.
With the relatively broadly diversified American S&P 500 index, for example, one could have looked back on average price gains of 8% per year over the last 20 years. Those who preferred to remain loyal to the German stock market were able to achieve an average annual return of 7.5% with our DAX over the same period.
Of course, it is important to note that these are average returns and the value of your portfolio could fall in the meantime. Nevertheless, you could have generated a much higher amount from 10,000 euros over the years. This is why, in my opinion, the stock market certainly offers one of the more sensible alternatives to other investment opportunities.
However, the prerequisites for investing in the stock market should be that you are as debt-free as possible and in a good financial position and, ideally, you can spare the money you have available for investing in the long term. This means that there shouldn’t be too much standing in the way of investing in stocks.
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