Take the test now!: Which type of guardian are you?

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Savings are still attractive. While only a few years ago interest rates were hovering around the zero point range, returns of up to 2 percent are now possible again. And the desire to save is noticeably increasing in this country: While Switzerland’s savings rate was 12.6 percent in 2018, it increased to 16.3 percent in 2022, and even 18.7 percent during the Corona epidemic. This is shown by data from the Federal Statistics Office.

Savings rate refers to the portion of disposable income that can be used for savings. Experts recommend dividing the money saved into three “boxes”: one for medium and short-term expenses, one for the iron reserve (rule of thumb: three net months’ salary) and one for long-term expenses. The last fund also includes special services, i.e. column 3a.

The reason to save is obvious: Unexpected expenses like larger purchases, medical emergencies, or car repairs can quickly exceed your normal monthly budget; Therefore, it is advisable to reserve something for such occasions. Additionally, saving allows you to build wealth and benefit from compound interest to live a financially stable life in the long run.

So how can I save properly? First, you need to determine the current savings rate based on your monthly budget. It then helps you find the right savings method for you. Some people transfer a fixed amount to their savings account at the beginning of the month and make do with the remaining money until their next paycheck. Others rely on savings rounding: Here, each purchase is rounded up to the next highest round amount and the difference is transferred to the savings account.

But no matter how you put your money away: there are now convenient savings solutions, from flexible accounts for short-term plans to long-term savings, depending on your savings goals and behavior. For example, Cembra offers four different savings accounts (see the box above for more information).

What kind of protector are you? Find out with our quiz!

Source :Blick