{"id":8752,"date":"2019-04-10T23:10:58","date_gmt":"2019-04-10T21:10:58","guid":{"rendered":"https:\/\/www.smolio.ch\/wissen\/investing-money-safely-how-to-optimize-your-finances-step-by-step\/"},"modified":"2024-12-01T09:49:33","modified_gmt":"2024-12-01T08:49:33","slug":"investing-money-safely-how-to-optimize-your-finances-step-by-step","status":"publish","type":"post","link":"https:\/\/www.smolio.ch\/en\/wissen\/investing-money-safely-how-to-optimize-your-finances-step-by-step\/","title":{"rendered":"Investing money safely: how to optimize your finances step by step"},"content":{"rendered":"Lesedauer<\/span> 4<\/span> Minuten<\/span><\/span>\n

You have a large amount of money in your account and are asking yourself: \u201cHow can I make more out of it, how can I invest the money safely?\u201d Or have you received a large amount, for example as a bonus payment, 13th salary or inheritance? Discover how you can optimize your finances sensibly in these cases. <\/p>\n\n\n\n

Congratulations, you have a great problem. Namely, how to increase the money you already have. Depending on whether the money has just come to you or has accumulated in your account, our recommendation is slightly different. Because if the money has just come to you \u2013 as a gift, inheritance, 13th salary or bonus payment, for example \u2013 it\u2019s totally okay if you treat yourself to something first before you think about investing. After all, you have earned it (bonus, salary) or received it to do something good for yourself (gift). Deliberately setting a highlight, be it a trip, a nice weekend or whatever else is good for you, is fine. It\u2019s a different story if the money has been sitting in your account for a long time and you\u2019ve been wondering what to do with it. Then it\u2019s straight to the hardcore optimizations :-). <\/p>\n\n

Investing money safely: reduce debt first<\/h2>\n\n

First, check whether you owe someone money. Because then the compound interest effect<\/a> works against you. And that\u2019s not cool. So: Do you have tax debts? Is your account in the red? Do you have a consumer loan? Get rid of it and see how you can repay these loans as quickly as possible. Because you want to benefit from your money with compound interest. You don\u2019t want others to suck you dry. <\/p>\n\n

Invest money safely as a liquidity reserve<\/h2>\n\n

The next step is to build up a liquidity reserve. In other words, building up a buffer that ensures that unplanned, unforeseen expenses don\u2019t throw you and your finances off track. It\u2019s like your personal airbag \u2013 it\u2019s there when you need it. A liquidity buffer of 3 to 6 months\u2019 expenditure is usually sufficient. This is how you determine how much<\/a> you need each month. <\/p>\n\n

Safely \u201cinvest\u201d money in taxes due<\/h2>\n\n

Yes, I know. Paying taxes is unsexy. But look at it this way: you can pay taxes because, unlike others, you have<\/i> an income. You stand on your own two feet, you\u2019re not on anyone\u2019s pocket, you\u2019re not dependent. And since you\u2019ll have to pay taxes one day, what if you could even make a profit by paying taxes in advance? You can find<\/a> out how you can still earn money with an advance tax payment on the tax you expect to pay this year here<\/a>. <\/p>\n\n

Investing money securely to close gaps in 1st and to close the 2nd pillar<\/h2>\n\n

If you have gaps in your compulsory pension contributions, it is worth closing them. Missing years of AHV contributions<\/a> will lead to a lifelong pension reduction of 2.3 % \u2013 for each missing year. In relation to the individual maximum AHV pension, this amounts to around CHF 55 per month or CHF 660 per year. You can pay contributions retroactively for missing years for up to 5 years and thus avoid the pension reduction. Financially, this is a no-brainer: if you have had no income and therefore only pay the minimum contribution of around CHF 480, you will recoup several times that amount later. <\/p>\n\n

You may also still have purchase potential in the 2nd pillar. For example, because you took a sabbatical or started working later or took a maternity leave, or simply because your salary has increased since you started working. Then it may be worth \u201cbuying in\u201d, i.e. paying voluntary contributions into the pension fund. You can find out what you should consider<\/a> in this article<\/a>. <\/p>\n\n

Feed your pillar 3a with the maximum amount<\/h2>\n\n

Have you worked through this sequence? Can you invest even more money safely? Then let\u2019s move on to the category \u201cGrow money and optimize taxes at the same time\u201d. Do you have a 3rd pillar but have not yet paid in the full contribution for the current year? Then it\u2019s time to immediately withdraw any surplus money from your account and pay up to the maximum amount into your 3rd pillar! This will give you a direct return. The money must reach the pension foundation of your bank or insurance company by the end of the year at the latest. So perhaps don\u2019t transfer the money at the last minute. This is how you get the most<\/a> out of your pillar 3a investments. <\/p>\n\n

Of course, it\u2019s better if you make the deposit right at the start of the year. In this article,<\/a> we have shown how much the habit of making regular deposits at the start of the year makes up in francs. <\/p>\n\n

Increase your money with securities on the stock market<\/h2>\n\n

Wow, you still have money left over? Then let\u2019s move on to investing for your private pension. And with these 8 tips for beginners<\/a>, you\u2019ll be able to tap into long-term growth potential by investing in the financial market. Because long-term studies show that participating in the financial market pays<\/a> off. Perhaps the insights that we and many investors have gathered over the last few decades will help you and can provide<\/a> you with guidance<\/a> to make investing in shares easier. Do you want to know which strategies you can use to enter the capital market? Then subscribe to Smolio now and don\u2019t miss the second part of the series, which goes into more depth on the topic of investing a lump sum on the stock market. <\/p>\n\n

Summary: Investing money safely<\/h2>\n\n

If you have received a larger one-off amount: Don\u2019t forget the fun! You invest 20% in yourself. In lasting experiences and memories, developing your skills or something else that you enjoy. In return, the rest of the money has to work for you. First you use it to pay off consumer loans or overdrafts. Then you build up your liquidity reserve of 3 to 6 months\u2019 expenditure. Then you check whether an advance tax payment makes sense for you. Pay what\u2019s left over into your pillar 3a for the current year up to the maximum amount. If you still have some of your assets left over: Congratulations! Invest it in the stock market. <\/p>\n\n