"Finanzen einfach erklärt" mit Daniel Jung Teil 3 - Geld sparen vs. Geld anlegen

Hey everyone, it's great to have you back for another episode of Finanzen.Einfach Erklärt, in which the savings bank finance group Hessen-Thüringen and I discuss the topic of finances. This video is about the topic of saving money versus investing money. It may not sound exciting at first, but there are many interesting ways to use your money so that it multiplies and you can realize one of your dreams at some point. So, are you ready to learn more? Let's go! First, let's explain what a money system is. A money system means that you use a certain amount of money to multiply it. This can happen, for example, through a financial product of the savings bank, through investments in companies, the acquisition of real estate or, for example, stocks. But what is the difference between investing money and saving money? The terms are often used synonymously, but there is a significant difference. When saving money, you simply put the money aside, either in the short term or in the long term. The risk of losing your money due to fluctuations in the market or the like is usually lower, but the return, i.e. the profit in how far you can multiply your money with interest, is also lower. When investing, you take a higher risk, but you also have a chance of higher returns. The invested money could increase significantly in the long run. What exactly the interest-to-interest effect is at this point, you will find out in one of the next videos. Now let's take a look at the different possibilities of saving money and investing money. When saving money, there is the classic savings book, the daily account, the fixed account and the building savings contract. If you don't know what exactly that is, check out my first video on account types. When saving money, you put money back for the future. There are different possibilities for this. Let's start with the savings book. The savings book or savings account is the classic form of saving. You can easily deposit money and withdraw money and get an interest from the first euro. Having a savings book is safe and you can withdraw € 2,000 per month at any time. Another option is the daily account. It is a comfortable solution if you want to save money in the short term. This way you always have a reserve in case unexpected expenses occur. This way you can safely deposit money, withdraw money all the time and get an interest. But be aware that constantly available money means less interest. It should be noted that you cannot make direct transfers. The daily account is therefore perfect as an addition to the current account. There is also the possibility of saving via a fixed account. There you deposit a certain amount for a certain period of time. You keep a guaranteed fixed interest for the entire time. This means that your money multiplies on its own. During the period of time, you cannot access the money or change the amount. Here's a quick example. You deposit € 5,000 at 2.5% for two years. Let's do a quick calculation. In the first year, you deposit € 5,000 at 2.5%. What interest would you get there? 2.5% of € 5,000 would be € 125. This means that after one year, you would have a total of € 5,125. After year one. What happens now? Again 2.5%, but now at € 5,125. Since you have already multiplied your money, there should be more interest. If you calculate this, 2.5% of € 5,125 would be € 128.13, which again adds up to € 5,125. More on the topic of interest in the next video. In addition to the fixed-income account and the daily income account, there is also the building savings contract. In building savings, you save money to invest in your own house or property in the future. The principle of building savings works like this. In the so-called savings phase, you deposit a monthly amount of € 5,125 to your building savings account over a period of, for example, 10 years. This is followed by the loan phase, in which you get a interest-free building savings loan for the dream of your own home. This means that you get the money in a loan. So it is a perfectly plannable and even funded possibility to invest your money. Since the money on the building savings account is legally secured, there is a lower return. So a lower profit, longer running time and limited flexibility. You now know about the possibilities to save your money. But what about investing money? Here it is important to know what is important to you. Do you put more emphasis on security, a high return or being able to access the money quickly, also known as liquidity? These three factors are called the magical triangle of the money system. And recently, the magical triangle has been extended to the topic of sustainability. This makes the whole thing a magical quadrangle. When it comes to a sustainable money system, just talk to your financial institute. When investing, you have options such as securities, precious metals or real estate to choose from. I would like to give you a brief insight into the topic of securities. Securities can be stocks, funds, certificates or options bonds. The different types of securities have different risks, running times and chances of return. Starting at 25 euros a month, you can invest in a savings plan, for example, if you are interested. So you have noticed that the topic is very extensive and not uncomplicated. But we have learned that there is a significant difference between saving money and investing money. As always, think carefully about what you want to do with your money. Do you want to put the money aside? Do you want to access the money at all times? What risk are you willing to take for a higher return? For a detailed consultation, you can always make an appointment at your financial institute, for example, the Sparkasse. If you want to learn more about the topic of saving money versus investing money, then check out the Sparkassen school service or visit finanzenmitdanieljung.de. In my next video, we will deal with the topic of interest. So stay tuned. See you soon. Ciao!