ᐅ Saving for the Future to Build a House – But How?

Hello dear community,

My girlfriend and I, 19 and 21 years old, want to fulfill the dream of owning our own home someday. (Please no comments like “grow up first,” “see if you stay together,” etc.). We have been together for 5 years and both started our vocational training this year. We would like to build a house in our early 30s if everything goes well and want to start saving money now to make that possible. Together, we could save 800€ per month (about 880 USD) in the first year of training, and 1,000€ (about 1,100 USD) in the second and third years. After that, we plan to save a bit more, around 1,200€ (about 1,320 USD) per month. Our saving period would be about 7 to 8 years.

Now the question is what the best way to save the money is: a building savings contract (Bausparvertrag), a high-yield savings account, or an investment account, although the latter requires considerable knowledge (I have only done some preliminary reading). I think many here have extensive experience and can give us helpful advice, which we would really appreciate. We would also like to remain flexible with the money, meaning that if something comes up in those 7 to 8 years and we don’t end up buying a house, we don’t want to owe money or face penalties due to fixed terms or conditions.

As I said, I’m very inexperienced and only just starting to look into this topic.

Thanks in advance for the help and tips. If you need more details, please let me know—I’m not sure which information is relevant in such cases.

If you want to build with confidence, in this case, I would even consider a home savings plan... this way, you can secure low interest rates to some extent and build a solid foundation that can serve as one component for a good financing option when it matures in 7 to 8 years.

A household budget book has helped many people. First, record all expenses there—fixed costs as well as every small purchase like a roll. This way, you can see what is realistically manageable. I would put the remaining money* into a third account. In an emergency, you can access it, but otherwise, it’s parked there. Then keep an eye out for banks offering interest rates here and there. You can park the money there for one year. We are all very curious to see what savings opportunities this will bring in the future.

*However, if I were in your position, I wouldn’t restrict myself too much: whether you set aside 50€ (about $55) more or less per month makes hardly any difference later on—but right now, having some extra money saved while still spending a euro now and then on something enjoyable like the cinema or a holiday can bring much more happiness.

I wouldn’t exaggerate with saving, or rather, not save at all. Working for two months will save you more than what you can carefully put aside during the three years of training.

On the other hand: anyone who manages to save money during their training will definitely be able to finance a property later on! ;-)

It depends on whether, as an apprentice, you are already financially responsible for your own household, etc. The fridge is always stocked, car insurance is paid by the parents. All other insurances aren’t even on your radar yet.
Retirement planning and so on...
Looking back, as an apprentice I had more money at my disposal than I do now 🙂