Investment as equity capital, how much should be kept as reserves?

Steffen naturally has special needs as a self-employed person. But 100k is already a lot, especially if, for example, there is a high-priced car that could be converted into cash in an emergency. I would calculate everything in the overall context; otherwise, you have too much dead capital lying around.

The 100k is, of course, not lying around interest-free. 10k in cash, 40k in Tagesgeld, 20k in precious metals, and 30k in ETFs.

Regards, Steffen

Thank you for your answers. In this case, I can now estimate it a bit. Unfortunately, I am a total scaredy-cat and try to prepare for every eventuality. Especially because, for example, we cannot rely on our parents in an emergency or anything (because there simply isn’t anything there). That’s why I am unfortunately a big scaredy-cat when it comes to financial matters.

I was also interested now because I recently talked to an acquaintance who said they have nothing left in their account (very big built, both "normal," rather below-average jobs), and I thought I probably wouldn’t be able to handle that mentally.

Thanks for your answers. In this case, I can now estimate it a bit. Unfortunately, I’m a total scaredy-cat and try to anticipate every eventuality. Especially because, for example, we can’t rely on our parents in an emergency or anything (because there’s nothing there). That’s why I’m unfortunately a huge scaredy-cat when it comes to financial matters.

I was just interested now because I recently talked to an acquaintance who said they have nothing left in their account (very large household, both "normal," rather below-average jobs), and I thought I probably wouldn’t handle that mentally

That has nothing to do with being a scaredy-cat. Your attitude sets you apart from your acquaintance (they’ll end up on Zwegat).

I’m the same... 500k loan on my back and if it goes wrong, there’s no one in the company who could help us.

Regards, Steffen

Depending on other circumstances, I actually see no point in keeping more than 8k to 20k quickly available. This range probably covers the annual loan installments for most people, although I would not choose this approach.

I would invest all funds, except for the above-mentioned amount, in equity and later special repayments. I am not a banker, but for me it is clear that a comparatively very high return is achieved here, and at the same time there is no risk (apart from the fact that building a house is a risk in itself).

J

I would put all funds, except the aforementioned amount, into equity and later special repayment.

It depends on how you can invest, for example, the 100,000. If you get the interest on the loan as a return, there is hardly any reason for special repayments. If it just sits idle in an account, having 10,000€ immediately available for the new build will certainly be enough for the first 10-15 years. At some point, you have to start saving for renovation work. "Small stuff" like new wallpaper or floor coverings (i.e. simple renovation work) I pay out of the general petty cash.

it depends on how you invest the 100,000, for example. if you can get the loan interest as a return from it, there's hardly any reason to pay off early.

Yes, that's true. But please don't reduce this to a simplistic calculation, otherwise it will go wrong. Capital gains are taxable and returns are associated with risk. The spread between loan interest and return must be significant for it to be worthwhile and the risk justified.