Life changed a lot in the last two years. Things we thought we could never live without became less important and we spent more time at home than ever before. So it makes sense that our financial habits changed too. 

What’s changed?

German households are now richer than ever, with private assets of over €7.7 trillion. Most of this was thanks to a big increase in saving. 

DZ Bank reported that the household savings rate has been over 15% since 2020, which means Germans put away 15 euros out of every 100. But people aren’t just letting all this spare cash sit around. Deutsches Aktieninstitut found that 23 percent of Germans now own stocks and 67% of 18-29 year olds are actively investing, the highest ever number for this age group.

Why are people saving?

People have had a lot of time to think about what the future might hold. From job insecurity to making sure emergencies are planned for, priorities have changed.

Even though society has opened up again, savers are less likely to spend disposable income on foreign holidays, nightlife and entertainment like trips to the cinema or sporting events. That’s not to say that people just stopped having fun. It just means that values have shifted through the pandemic.

Low interest, high inflation and a world where work is completely reimagined all play a big role in this change in saving behaviour. One thing, however, unifies savers of all generations: the realisation that the only way to consistently build up wealth is investing.

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Here’s how you can save too:

If you haven’t changed your habits all that much, there’s no need to worry. But there’s no time like the present to start thinking about how you can make a few small changes that could have a big impact later in life.

It doesn’t need to be complicated. The first thing to do is make sure you’ve covered your bases by setting up an emergency fund. Once you’ve done that, keep your savings safe from inflation by using an interest account. The only thing left to do after that is start investing. It’s easier than ever to become an investor and there’s no trick or secret knowledge to making it work. All you have to do is get started and give your investments as much time as possible to grow. Easy!