Not everyone can immediately buy a house, buy new furniture, a laptop or go on vacation. There are many lenders who like to help under the arms in such cases. After all, every second German finances his life with loans. It is therefore not surprising that the results of a recent study, which show that Germans prefer to borrow rather than invest money.
Loans – yes, invest – no
The study found that almost 80% of those surveyed would dare to take out a loan. When it comes to investments, only half of the respondents would be willing to invest their money in stocks or funds. Younger people in particular place less value on future assets (just under 40%), while older people are more willing to invest (60%).
Why are loans so popular?
It is not because of the complexity of investing, because it is as simple as taking out a loan. Nowadays, people don’t want to wait much longer for money. Saving money for a trip? For many a false report! From a psychological point of view, it is also easier to borrow the money to start a trip as quickly as possible, or to purchase the desired product immediately, instead of spending a lot of time on it.
Added to this are the low interest rates when saving, as well as uncertainties in the securities markets, which cause the values of the shares and the funds to fluctuate, which leads to investors refusing to invest.
Think long term
Even though loans are now part of our everyday life and it is always easy to take one in, it is not wrong to think a little future-oriented. It is understandable that you want to live today and now, and it is not wrong to take out a loan or two for important things. But to live permanently on the clumsy side and to have everything financed by loans can lead to financial fiasco, especially in the case of an average earner. Not only are you financially constrained by multiple loans, but nothing is done for long-term prosperity.
Conclusion: Ideally, you combine both: loans, if necessary, also think about the financial future in which you invest or save. As with loans, there are various providers of investments who can advise interested parties professionally and without obligation. Perhaps as a resolution for the new year, in addition to keeping more control over finances, also saving a little?