Thread replies: 6
Thread images: 1
Thread images: 1
Anonymous
Saving money - Am i stupid? 2017-01-29 06:59:37 Post No. 1763310
[Report] Image search: [Google]
Saving money - Am i stupid? 2017-01-29 06:59:37 Post No. 1763310
[Report] Image search: [Google]
File: Saving.jpg (44KB, 984x554px) Image search:
[Google]
44KB, 984x554px
I recently decided to put all my money into a 3.2% high-interest account (25k DOL/20k EUR).
So you might ask: "why would this be a negative thing?".
Well, the twist is: I can't withdraw the money if i'm not using them to BUY a house/pay down a house, i can use it as equity so i need to loan less.
I knew about this before i deposited the money, but i don't really need money really soon. So i decided to put it all in the 3.2% account because i'm going to buy a house later anyways.
Important
* When i use any of the money from the account (on buying a residential), the interest with stop adding up.
* I will keep getting interest until the year i'm 33 yrs old. (Or until i use some of the money).
Additional notes:
I'm 19 years old
I live in Norway
No plan of moving out until the age of about 25.
I'm currently working, so it's not like i'm in a crisis right away.
Currently no drivers licence but i'm still getting salary each month, so i can afford it.
I'm having a decent releationship with my mom, she will let me stay home until i'm 25-27 if i want.
Main question is if i should:
A: Keep filling the interest account until its fully maxed out? It can hold a total of 72K DOL/67K EUR.
B: Continue saving for emergency fund + saving for general things.
>>
>>1763310
Lookup some rough numbers for mortgages in Norway.
How much does a starter home cost in an area you want to live?
As a first-time buyer, what % down does the bank require for a mortgage?
Those two give you an idea of how much to save for your house. Your emergency fund is up to you (6-12 months living expenses).
3.2% is a shit return though, and you're young, so put anything beyond that amount in a globally diversified portfolio of equities.
>>
>>1763507
Do you have real estate listings in Norway?
What bank do you use? Does their website have a section for mortgages?
>>
>>1763530
OP here (from work PC). I use a bank named "Nordea" It's also used in a few other scandinavian countries. You need to have 15% equity to loan cash for house.
> Do you have real estate listings in Norway?
What do you mean? I can lookup prices of people selling their houses, if that is what you mean.
>>
>>1763310
That seems like a horrible deal. I would not contribute any more into that. You can get much better returns with better liquidity by investing into a index fund.
>>
>>1763310
It's bad if inflation jumps way higher than what you are earning in interest. Especially since when that happens interest rates for loaning against that money (equity) increases. So you'll get double screwed if that happens, and it can happen since it's in there for 14 years.
>I'm assuming it's a fixed interest rate.
Risky, don't put all your eggs in one basket.
Thread posts: 6
Thread images: 1
Thread images: 1