Tip 6: Divide your finances correctly
In addition to the classic savings options of overnight money and fixed-term deposits, you can also choose from various stock market investments such as bonds, shares, gold or real estate. The basis of every financial investment should above all be simple and transparent. An investment mix of overnight money, fixed-term deposits and cheap ETFs or equity funds forms a stable foundation.
This is the safest form of investment cash account. Your money is legally protected by deposit insurance within the EU, and your balance is available to you on a daily basis. However, the return is relatively low. In any case, you should compare the offers for overnight money, because the services can be very different. You can find out more about this topic in our guide to daily allowances.
fixed deposit is also one of the very safe investments. Your deposits are protected up to an amount of 100,000 euros per account by the European deposit insurance, losses are practically impossible. The interest rates are higher than with overnight money, but you cannot access your money within the selected period, so you have a certain liquidity risk. You can find out more about fixed-term deposit accounts in our fixed-term deposit guide.
ETFs stand for low fees, higher returns and are significantly less risky than individual stocks, since ETFs bundle many individual stocks. An ETF on the world stock index MSCI World can form the basis for a beginner’s portfolio. This index invests globally and includes more than 1,600 individual stocks. But an ETF on the American S&P 500, the Dow Jones, the leading German index DAX or on an industry can also be an interesting investment for one or the other investor.
Tip: Anyone who does not dare to create an ETF savings plan on their own, or simply does not have the time for it, can invest their money with a robo advisor. This fully automatically spreads your money across bonds, stocks and commodities using ETFs. We have providers such as Scalable Capital, ginmonWhitebox and Co. under the microscope in our robo-advisor comparison.