Special repayment, saving or consumption?

I'll put it this way, we used to be more frugal. At the moment, we are not saving at all. Because here and there something is being purchased for the house.

The charges and expenses for the house are really unusual right now. A municipal fee here and an electricity back payment there, insurance, and an unplanned car repair with a major service. We have been paying off the loan for exactly 1 year now (we moved in in July) and I actually wanted to make extra repayments of 10-15k€ every year. Without the Baukindergeld and the Eigenheimzulage, this would not be possible this year.

So, yes and no, we only make extra repayments by chance and basically do not consume for ourselves either. Meaning, to pull ourselves together this year and make extra repayments next year from the savings.

Interesting question, I’m curious about other answers.

That is an honest answer and confirms all the studies that banks are happy when customers only repay 2% and then want to massively use the extra repayments but then cannot (due to consumption, special expenses, etc. pp).

I find the first 18 months intense. After that, it got better

In this thread, I realize again what an absolute oddball I am in this forum.

That’s why I keep bumping into walls here ^^
But my views are simply different from most people here.

I would never come up with the idea of NOT making the maximum special repayment if I could and instead consuming. Unless my financing was really tight, but I don’t think that’s the case for most.
Every year, I make a 5,000,- special repayment on one loan component. Unfortunately, this is not possible with another one, and with the building savings contract, I have already made 30,000,- in special repayments.
The loan has been running for 4.5 years now.
Additionally, I save so much on the side that I can fully pay off the first two loans after 10 years and be done with them.
That probably won’t quite work out anymore, since a new construction is coming up soon, so I’ll see how I then allocate the special repayments to the individual loans.

I don’t consume much. According to the household budget, exactly 1,020,- flowed into consumption in 2019. (Children’s toys etc. excluded) I lack nothing.
But advertising industry etc. seems to work well on all of you.

Fortunately, we can consume and make special repayments at the same time without major restrictions. If we make special repayments every year (which has worked every year so far), we will have paid off the loan by the end of the term. Maybe I could invest the money better, but it wouldn’t give me such a nice feeling.

that is an honest answer and confirms all the studies that banks are happy when customers only repay 2% and then want to use massive special repayments but then can't (due to consumption, special expenses, etc. pp)

That's why with 3% repayment. I would never have wanted to repay the amount with 2% or less in my life. The own special repayment calculations are of course always very ambitious and will probably not materialize for many in the first 2 years. I think so too! Actually, the situation is quite relaxed. There will still be 10-15k€ left on the loan, the direct bank is currently having problems paying out the rest without an invoice. But I will get that solved too. Unfortunately, the carport will then become insanely expensive ;-p. So we will then also shoot the rest into the 153 loan, so that it is paid off in 4-5 years.

Maybe consumption should be defined first. Does everyone have the same understanding of it? For example, we really like to travel and take long-distance trips, which cost about 5,000 per vacation. We could also use that money to make extra loan repayments, but the experiences and memories are priceless. There is a number in the account, but I don’t care about it. Pictures from the vacations hang on the wall and make me smile every day.

We have reduced consumption in the form of always having the latest iPhones and so on. That doesn’t bring happiness and is unnecessary.

Only my sports car, I treat myself to that as a horsepower junkie.