The first step has been taken today

No, I still cannot see any logical error in our approach. We have 2 [Bausparverträge], each running for 10 and 15 years respectively; one we pay into monthly, the other annually. Of course, we have calculated how much we need to save each time in order to fully fund the [Bausparverträge] and then pay off our loan. If we have more left over at the end of the year, we obviously do not put it into the [Bausparer], because it does us no good if it is completed earlier. This money is then logically put into an account, because it definitely does not go into the loan.

This money will then logically be deposited into an account, because it certainly will not go into the loan.

And there lies the error in thinking.
What interest do you get on the account, and what interest rate for the loan?

Maybe we are talking past each other. 5-10,000 € should actually be kept available in an account. But anything beyond that should, if possible, be paid off early. This buffer is precisely for larger purchases or repairs.

But to each their own :)

Yes, I think we are talking past each other. The reasons for our way of thinking are not financial, but simply based on a sense of security. At the beginning of our financing, we set an amount that we can pay monthly as a loan installment (even with only one salary, if children come). We have comfortably stayed under this amount thanks to the KFW loans. (and we are even repaying the KFW loans with about 2.3%, that is how it is set.). Now it is even enough to save more monthly in the building savings contract. Ultimately, this means that paying this amount does not hurt us, because we planned for it. So if there is something left over in the end, we simply have something to put aside. Then I can go to bed calmly at night and know that if something unexpected happens (you never know), we still have a decent buffer. I don't want to base my life solely on the loan and throw every cent into it immediately; it's not worth it to me and with the interest rates, it is easier for me to act this way. I am aware that I have an interest loss, but it doesn't bother me. I think entering into financing of such a scale involves more than just calculating how quickly I pay off the debt. There are so many unknown variables that you cannot yet assess at this point in time. So, that is my point of view and also that of my husband ;-) And I still insist that I have no flawed reasoning!!! ;-) Oh, and having a buffer of 2-3 monthly salaries in reserve goes without saying!!!

Well, you just have to make sure that with all the comfort you’re also done by 65. Otherwise, the private retirement provision goes into repayment. Our plan is to pay off the house as quickly as possible. To the extent that a family vacation to China has to be affordable already. Our loan burden is almost as high as a similar rent. That’s because of the great rent levels here... 80 sqm new build you can easily get for 1300 warm :) But if by the end of the year I have an extra 10,000€ in the account, that will certainly go into repayment. Alternatively, I could also transfer it directly to Greece.... or Spain or ... I think especially now and in the next 10 years you should invest your money as risk-free and secure as possible. And where is it better invested than in expenses you won’t have later? Just imagine you are 57 years old, have 10 more years to work, and everything I then earn stays with you, because the house already belongs to you. You can spend the last 20-40 years of your life traveling, spoiling your children, and doing all the things you won’t do during your working life anyway. Whoever starts into old age healthy can still enjoy a few more years. I’m experiencing that right now in my own family. But in the end it really depends on what opportunities you have. Well, I’m also a Swabian and don’t want to give the bank my money :)

Yes, everyone just has to set their priorities individually. Prepayments are simply not an option for us currently and for the next 10 years. Although I also don’t believe that if our plans for having children go as we wish, we will save much in the next 10 years. But just a nice cushion so that if [Pferdi] has a colic or the dog has a gastric torsion, I don’t immediately have to get stomach aches because of the vet bill. Oh, and by retirement age we will have paid off our loan, I have no worries about that....