rainy days
short term
long term
speculation
compound interest
dept

Dept = negative savings!

Saving starts with getting rid of any dept, especially consumer depts.

Why? The cost of having dept will always be bigger than any possible gains of the same money. (You will always pay more interest for x-amount of money than you can earn with the same amount of money.)

As an example consider this: You have CHF 10'000 saved in a bank account. At the same time you hold a personal loan of CHF 10'000 with a credit institution. As a savvy investor you are of course not satisfied with the meager interest you earn on your account, so you start thinking of investing the cash into something more worthwhile, and decide to put your money into a bond fund, which should yield a nice 4.5% interest per year. Good? No, not really, because at the same time you are paying 12% interest on your loan, effectively loosing some 7.5% per year.
But you can deduct the paid interest from your income, one might argue.
Very true, so you end up loosing only 6% instead of 7.5, but loosing you do.

It would have been much smarter to actually have paid off the loan.

Dept that need to be paid off as soon as possible:

Credit card dept (Interest rates range from 10% up to the allowed maximum of 18%)
Private credits or loans (also from 8% upward, sometimes also carrying additional costs for actually setting up the line of credit, and sometimes levying a penalty for early down payment)


Just about the only exclusion that might actually work in favor of a possible lender are mortgages.

For one they generally carry a small interest, and for the time being the interest payments can be deducted from the income.
But even then it must be well thought through how much dept you want to keep on you property.