What is your need for saving money? – Loans

For some, saving money is an end in itself. In addition, others have clearly defined goals for saving.

There may be a desire to have something in reserve to meet unforeseen expenses, a desire to save for purchases of larger assets such as houses, cars and homes. Or it may be a desire to maintain a higher income level as a pensioner than what we receive through the national insurance.

But the risk of a career breach in the event of illness or disability may also be a reason to save.

The goals we have with money-saving have a bearing on the choice of saving forms

The goals we have with money-saving have a bearing on the choice of saving forms

Of course, it is important that the savings provide as much return as possible. In addition, you must consider how easy it is to transpose the savings object and what risk the various savings forms represent.

The return is greater on long-term savings contracts with limited opportunities to withdraw funds free of charge before the end of the contract period, compared to savings forms without a binding period.

When choosing a saving form, we should therefore think about when we need the money again, and whether we especially need to be able to quickly extract our invested money and returns.

Moreover, higher risk will often yield more return than less risk. Investments in equities may yield gains that are significantly above alternative investments, but the risk of losses is correspondingly greater.

The scheme means that no tax deduction is granted at the time of investment

tax deduction

The tax benefit of the scheme is linked to an exemption in the taxation of the gain from the sale of a share after the expiry of the binding period.

To save money to borrow

save money

After it was very easy to get a loan for a while, banks have begun to place greater demands on collateral, ability to pay and equity.

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