{"id":9453,"date":"2026-01-22T15:36:53","date_gmt":"2026-01-22T14:36:53","guid":{"rendered":"https:\/\/schweizerfinanzblog.ch\/finally-get-your-money-in-order-with-these-5-financial-resolutions-forever\/"},"modified":"2026-01-23T07:21:12","modified_gmt":"2026-01-23T06:21:12","slug":"5-rewarding-financial-provisions-for-the-new-year","status":"publish","type":"post","link":"https:\/\/schweizerfinanzblog.ch\/en\/5-rewarding-financial-provisions-for-the-new-year\/","title":{"rendered":"Lay the foundation for your financial freedom in 2026 with these 5 financial resolutions"},"content":{"rendered":"\n<p data-start=\"296\" data-end=\"592\"><strong>Dry January, veganuary, more sport or all of the above? As sensible as these and other resolutions may be, unfortunately they are often short-lived. We want to change that, at least for your money. Because once your finances are properly organized, they will run like clockwork for decades.   <\/strong><\/p>\n<p data-start=\"599\" data-end=\"897\"><strong>In this article, we&#8217;ll show you how to build up your wealth steadily and automatically while keeping a full overview of your spending. You&#8217;ll also find out why the right money mindset is a key success factor on the path to financial freedom. <\/strong><\/p>\n<p><strong> &nbsp;<\/strong><\/p>\n\n<link rel=\"stylesheet\" href=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/themes\/schweizerfinanzblog\/components\/post-info-component\/post-info-component.css\">\n<div class=\"post-info-component\">\n\t\t<div class=\"von-and-comments\">\n\t\t\t\t\t<a target=\"_blank\" href=\"https:\/\/schweizerfinanzblog.ch\/ueber-uns\/\">Stefan &#038; Toni<\/a>\n\t\t\t\t <span>| <a href=\"#comments\">2 Comments<\/a><\/span> \t\t\n\t<\/div>\n\t<div class=\"post-dates\">\n\t\tupdated on 1\/22\/2026\t<\/div>\n<\/div>\n<link rel=\"stylesheet\" href=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/themes\/schweizerfinanzblog\/components\/kurz-bundig-component\/kurz-bundig-component.css?v=2\">\n\n<div  id=\"ScsnGvW\" class=\"kurz-bunding mb-3\" style='background-color:#f9f9fa'>\n\t<div class=\"d-flex kurz-bunding-title\">\n\t\t<div>\n\t\t\t<img decoding=\"async\" class=\"kurz-bunding-icon\" src=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2023\/01\/lifghtbulb2.png\">\n\t\t<\/div>\n\t\t<p class=''>\n\t\t\tShort &amp; sweet\t\t<\/p>\n\t<\/div>\n\n\t<div class=\"kurz-bunding-content\">\n\t\t<p>Finances are not the center of our lives, but should support us in living the way we want to. These five financial resolutions will help you achieve this goal:<\/p>\n<ol>\n<li><strong>Acquire money education<br \/>\n<\/strong>Without a basic understanding of returns, risk and the compound interest effect, there is no basis for anything else.<\/li>\n<li><strong>Know your own finances<br \/>\n<\/strong>Net assets and savings ratio are your starting point. First measure, then optimize. <\/li>\n<li><strong>Pay off debt &amp; build up a nest egg<br \/>\n<\/strong> Security before returns. Without a buffer for unexpected events, any strategy becomes fragile. <\/li>\n<li><strong>Increase savings rate<\/strong><br \/>\nThe most important lever for wealth accumulation and financial freedom.<\/li>\n<li><strong>Invest regularly<br \/>\n<\/strong>Passive, automated, with fixed amounts &#8211; the system is now being implemented.<\/li>\n<\/ol>\n<ol>\n<li style=\"list-style-type: none;\">\n<\/li>\n<\/ol>\n\t<\/div>\n\t\t\t\n\t<\/div>\n\n<style>\n\t#ScsnGvW .kurz-bunding-content li::marker{\n\t\tcolor: #37c392;\n\t}\n\t#ScsnGvW .kurz-bunding-call-to-action a{\n\t\tbackground-color: #1bab78;\n\t\tcolor: #FFFFFF;\n\t}\n\n<\/style>\n<div id=\"toc_container\" class=\"no_bullets\"><p class=\"toc_title\">Contents<\/p><ul class=\"toc_list\"><li><a href=\"#Why_financial_freedom_is_more_than_money\">Why financial freedom is more than money<\/a><\/li><li><a href=\"#Financial_resolution_no_1_Acquire_money_education\">Financial resolution no. 1: Acquire money education<\/a><ul><li><a href=\"#Why_should_I_do_that\">Why should I do that?<\/a><\/li><li><a href=\"#How_do_I_implement_this\">How do I implement this?<\/a><ul><li><a href=\"#Understanding_the_interplay_between_risk_and_return\">Understanding the interplay between risk and return<\/a><\/li><li><a href=\"#Understanding_the_powerful_effect_of_compound_interest\">Understanding the powerful effect of compound interest<\/a><\/li><\/ul><\/li><li><a href=\"#Calculation\">\n\t\t\tCalculation\t\t<\/a><\/li><li><a href=\"#Diagram\">\n\t\t\tDiagram\t\t<\/a><ul><li><a href=\"#Understanding_the_benefits_of_passive_investing\">Understanding the benefits of passive investing<\/a><\/li><\/ul><\/li><\/ul><\/li><li><a href=\"#Financial_resolution_no_2_Know_your_finances\">Financial resolution no. 2: Know your finances<\/a><ul><li><a href=\"#Why_should_I_do_that-2\">Why should I do that?<\/a><\/li><li><a href=\"#How_do_I_implement_this-2\">How do I implement this?<\/a><\/li><\/ul><\/li><li><a href=\"#Financial_resolution_no_3_Pay_off_debts_build_up_a_nest_egg\">Financial resolution no. 3: Pay off debts &amp; build up a nest egg<\/a><ul><li><a href=\"#Why_should_I_do_that-3\">Why should I do that?<\/a><\/li><li><a href=\"#How_do_I_implement_this-3\">How do I implement this?<\/a><ul><li><a href=\"#Exception_mortgage_debt\">Exception mortgage debt<\/a><\/li><\/ul><\/li><\/ul><\/li><li><a href=\"#Financial_resolution_no_4_Increase_savings_rate\">Financial resolution no. 4: Increase savings rate<\/a><ul><li><a href=\"#Why_should_I_do_that-4\">Why should I do that?<\/a><\/li><li><a href=\"#How_do_I_implement_this-4\">How do I implement this?<\/a><ul><li><a href=\"#An_example_from_our_own_experience\">An example from our own experience<\/a><\/li><li><a href=\"#The_spending_lever_as_an_instant_savings_rate_booster\">The spending lever as an instant savings rate booster<\/a><\/li><\/ul><\/li><\/ul><\/li><li><a href=\"#Financial_resolution_no_5_Invest_regularly\">Financial resolution no. 5: Invest regularly<\/a><ul><li><a href=\"#Why_should_I_do_that-5\">Why should I do that?<\/a><\/li><li><a href=\"#How_do_I_implement_this-5\">How do I implement this?<\/a><\/li><\/ul><\/li><li><a href=\"#Conclusion_on_the_financial_resolutions\">Conclusion on the financial resolutions<\/a><\/li><li><a href=\"#This_might_also_interest_you\">This might also interest you  <\/a><\/li><li><a href=\"#Updates\">Updates<\/a><\/li><li><a href=\"#Disclaimer\">Disclaimer<\/a><\/li><\/ul><\/div>\n<h2 class=\"wp-block-heading\"><span id=\"Why_financial_freedom_is_more_than_money\">Why financial freedom is more than money<\/span><\/h2>\n\n<p>Asset accumulation is not an end in itself. With these financial principles, we do not want to promote petty ragging or cut back on sensible expenditure such as donations. For us, it is clear that <strong>finances are not the focus of our lives, but should help us to live our lives as we wish. <\/strong>A worthwhile goal for us is a self-reliant life outside the hamster wheel.  <\/p>\n\n<p>No matter what your goals are: When you are financially secure, life is much more carefree &#8211; whether at work, when traveling or when you once again feel the need to freely express your opinion.<\/p>\n\n<p>These five financial resolutions, which we discuss in more detail in this article, should pave the way to financial freedom and a self-determined life:<\/p>\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/schweizerfinanzblog.ch\/en\/5-rewarding-financial-provisions-for-the-new-year\/?_thumbnail_id=6334#Financial_resolution_no_1_Acquire_money_education\">Financial resolution no. 1: Acquire money education<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/schweizerfinanzblog.ch\/en\/5-rewarding-financial-provisions-for-the-new-year\/?_thumbnail_id=6334#Financial_resolution_no_2_Know_your_finances\">Financial resolution no. 2: Know your finances<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/schweizerfinanzblog.ch\/en\/5-rewarding-financial-provisions-for-the-new-year\/?_thumbnail_id=6334#Financial_resolution_no_3_Pay_off_debts_build_up_a_nest_egg\">Financial resolution no. 3: Pay off debts &amp; build up a nest egg<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/schweizerfinanzblog.ch\/en\/5-rewarding-financial-provisions-for-the-new-year\/?_thumbnail_id=6334#Financial_resolution_no_4_Increase_savings_rate\">Financial resolution no. 4: Increase savings rate<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/schweizerfinanzblog.ch\/en\/5-rewarding-financial-provisions-for-the-new-year\/?_thumbnail_id=6334#Financial_resolution_no_5_Invest_regularly\">Financial resolution no. 5: Invest regularly<\/a><\/li>\n<\/ul>\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"1649\" height=\"800\" src=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2024\/01\/altes_Titelbild_Freiheit_section1-bg-v2.jpg\" alt=\"Financial forecasts\" class=\"wp-image-6322\" srcset=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2024\/01\/altes_Titelbild_Freiheit_section1-bg-v2.jpg 1649w, https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2024\/01\/altes_Titelbild_Freiheit_section1-bg-v2-768x373.jpg 768w, https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2024\/01\/altes_Titelbild_Freiheit_section1-bg-v2-1536x745.jpg 1536w\" sizes=\"(max-width: 1649px) 100vw, 1649px\" \/><figcaption class=\"wp-element-caption\">If your finances are in order, you can live a more carefree life.<\/figcaption><\/figure>\n\n<h2 class=\"wp-block-heading\"><span id=\"Financial_resolution_no_1_Acquire_money_education\">Financial resolution no. 1: Acquire money education<\/span><\/h2>\n\n<h3 class=\"wp-block-heading\"><span id=\"Why_should_I_do_that\">Why should I do that?<\/span><\/h3>\n\n<p>We start with the most general of all financial resolutions: your financial education. The main motivation is that financial security is a crucial factor for a carefree, free life. On the &#8220;operational level&#8221;, a solid financial education gives you stability in your investment decisions and prevents you from making rash decisions.  <\/p>\n\n<p>Specifically, if you have internalized the most important financial basics, you will not sell all your securities at a loss out of panic the first time you dive into the stock market.<\/p>\n\n<p><strong>The challenge is therefore primarily of a mental nature and is strongly related to the &#8220;right&#8221; money mindset<\/strong> &#8211; only secondarily to the correct practical implementation.<\/p>\n\n<h3 class=\"wp-block-heading\"><span id=\"How_do_I_implement_this\">How do I implement this?<\/span><\/h3>\n\n<p>Our preferred <strong>passive investment strategy with broadly diversified equity ETFs<\/strong> is scientifically sound and easy to implement. <strong>But it doesn&#8217;t work entirely without money education.<\/strong> You should internalize at least these three &#8220;financial wisdoms&#8221;:<\/p>\n\n<h4 class=\"wp-block-heading\"><span id=\"Understanding_the_interplay_between_risk_and_return\">Understanding the interplay between risk and return<\/span><\/h4>\n\n<p>Without risk, there is no return. And without a return, your assets will steadily lose purchasing power due to inflation. In 2025, inflation in Switzerland was 0.2%. To maintain the real value, you would therefore have to earn at least this rate of interest on your money. This is hardly possible with secure investments such as a deposit-backed bank account, as savings interest rates are likely to remain at zero across the board in 2026.    <\/p>\n\n<p>Nevertheless, such safe and liquid investments are ideal for emergency savings and current expenses. What counts here is security and immediate availability, not returns. <\/p>\n\n<p>When it comes to long-term wealth accumulation &#8211; including the 3rd pillar &#8211; the opposite is true: short-term fluctuations are normal and necessary. Without equities, real wealth preservation is hardly possible. Broadly diversified equity ETFs significantly reduce the cluster risk compared to individual shares.  <\/p>\n\n<p>In short, any investment can only ever fulfill two of the three objectives of <strong>return<\/strong>, <strong>security<\/strong> and <strong>availability<\/strong> &#8211; never all three at the same time.<\/p>\n\n<p>You can find out more in our article <a href=\"https:\/\/schweizerfinanzblog.ch\/en\/the-magic-triangle-of-investing\/\" target=\"_blank\" rel=\"noopener\">The magic triangle of investing.<\/a><\/p>\n\n<h4 class=\"wp-block-heading\"><span id=\"Understanding_the_powerful_effect_of_compound_interest\">Understanding the powerful effect of compound interest<\/span><\/h4>\n\n<p>Albert Einstein is said to have once said: &#8220;The compound interest effect is the eighth wonder of the world. Whoever understands it earns from it, everyone else pays for it.&#8221; In fact, the compound interest effect is one of the most powerful levers in wealth accumulation. Two factors are decisive: return and time. The higher the interest rate and the longer the investment horizon, the stronger the effect.    <\/p>\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"2500\" height=\"1420\" src=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2024\/01\/Zinseszins.gif\" alt=\"Financial forecasts\" class=\"wp-image-6323\"\/><figcaption class=\"wp-element-caption\">Even with a starting amount of just CHF 10,000, the compound interest effect is powerful &#8211; provided the interest rate and investment term are high enough.<\/figcaption><\/figure>\n\n<link rel=\"stylesheet\" href=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/themes\/schweizerfinanzblog\/components\/compound-interest-calculator-component\/compound-interest-calculator-component.css?v=1\">\n\n\n<div class=\"zinseszinsrechner-component \">\n    <div class=\"zinseszinsrechner-content-text mb-5\">\n        <h2 class=\"mb-4\"><\/h2>\n       \t<div>\n\t\t\t\t\t<\/div>\n    <\/div>\n    <div class=\"zinseszinsrechner-content\">\n        <div class=\"zinseszinsrechner-form\">\n            <div class=\"zinseszinsrechner-form-title\">\n                <p>Compound interest calculator<span class=\"money-icon\">\ud83d\ude80<\/span><\/p>\n            <\/div>\n            <div action=\"\" id=\"compoundForm\">\n                <div class=\"mb-3\">\n                    <label for=\"anfangskapital\" class=\"form-label d-flex align-items-center\">Start-up capital                        <div class=\"tooltip-icon ms-3\" data-bs-toggle=\"tooltip\" data-bs-placement=\"bottom\" title=\"This is how much you have already saved or invested.\">\n                            <span class=\"question-mark\">?<\/span>\n                        <\/div>\n                    <\/label>\n\t\t\t\t\t<div class=\"position-relative\">\n\t\t\t\t\t\t<input type=\"text\" class=\"form-control form-control-lg\" id=\"anfangskapital\"\n\t\t\t\t\t\t\t   placeholder=\"5.000\" value=\"5000\" oninput=\"formatNumber(this)\">\n\t\t\t\t\t\t<span class=\"input-sufix\">CHF<\/span>\n\t\t\t\t\t<\/div>\n                <\/div>\n                <div class=\"mb-3\">\n                    <label for=\"monatliche\" class=\"form-label d-flex align-items-center\">Monthly installment                        <div class=\"tooltip-icon ms-3\" data-bs-toggle=\"tooltip\" data-bs-placement=\"bottom\" title=\"This is how much you want to save or invest each month.\">\n                            <span class=\"question-mark\">?<\/span>\n                        <\/div>\n                    <\/label>\n\t\t\t\t\t<div class=\"position-relative\">\n\t\t\t\t\t\t<input type=\"text\" class=\"form-control form-control-lg\" id=\"monatliche\"\n\t\t\t\t\t\t\t   placeholder=\"100\"  value=\"100\" oninput=\"formatNumber(this)\" oninput=\"formatNumber(this)\">\n\t\t\t\t\t\t<span class=\"input-sufix\">CHF<\/span>\n\t\t\t\t\t<\/div>\n                <\/div>\n                <div class=\"mb-3\">\n                    <label for=\"spardauer\" class=\"form-label d-flex align-items-center\">Duration                        <div class=\"tooltip-icon ms-3\" data-bs-toggle=\"tooltip\" data-bs-placement=\"bottom\" title=\"That's how long you want to save or invest.\">\n                            <span class=\"question-mark\">?<\/span>\n                        <\/div>\n                    <\/label>\n\t\t\t\t\t<div class=\"position-relative\">\n\t\t\t\t\t\t<input type=\"text\" class=\"form-control form-control-lg\"\n\t\t\t\t\t\t\t   id=\"spardauer\" placeholder=\"10\"  value=\"10\" oninput=\"formatNumber(this)\">\n\t\t\t\t\t\t<span class=\"input-sufix\">years<\/span>\n\t\t\t\t\t<\/div>\n                <\/div>\n                <div class=\"mb-3\">\n                    <label for=\"zinssatz\" class=\"form-label d-flex align-items-center\">Annual interest rate or yield                        <div class=\"tooltip-icon ms-3\" data-bs-toggle=\"tooltip\" data-bs-placement=\"bottom\" title=\"In the case of shares, the annual return or total return consists of price gains and dividends.\">\n                            <span class=\"question-mark\">?<\/span>\n                        <\/div>\n                    <\/label>\n\t\t\t\t\t<div class=\"position-relative\">\n\t\t\t\t\t\t<input type=\"text\" class=\"form-control form-control-lg\" id=\"zinssatz\"\n\t\t\t\t\t\t\t   placeholder=\"5\" value=\"5\" oninput=\"formatNumber(this)\">\n\t\t\t\t\t\t<span class=\"input-sufix\">%<\/span>\n\t\t\t\t\t<\/div>\n                <\/div>\n                <button id=\"submitButton\" class=\"btn btn-primary w-100\">Calculate<\/button>\n            <\/div>\n\n        <\/div>\n    <\/div>\n\t\n\t\n\t<div id=\"diagramWrapper\" class=\"diagram-wrapper d-none mt-5\">\n\t\t<h3 class=\"diagram-title\"><span id=\"Calculation\">\n\t\t\tCalculation\t\t<\/span><\/h3>\n\t\t\n\t\t<div class=\"d-flex justify-content-between flex-column flex-lg-row mb-2\">\n\t\t\t<div class=\"d-flex\">\n\t\t\t\t<span class=\"diagram-bolder-text\">Final capital<\/span> \n\t\t\t\t<div class=\"tooltip-icon ms-3\" data-bs-toggle=\"tooltip\" data-bs-placement=\"bottom\" title=\"The sum of the starting capital, all deposits and the accumulated interest or income from capital gains and dividends\">\n\t\t\t\t\t<span class=\"question-mark\">?<\/span>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t<span class=\"diagram-bolder-text\" id=\"total\"><\/span>\n\t\t<\/div>\n\t\t<div class=\"d-flex justify-content-between flex-column flex-lg-row mb-2\">\n\t\t\t<div class=\"d-flex\">\n\t\t\t\t<span class=\"diagram-bolder-text\">Total deposits<\/span>\n\t\t\t\t<div class=\"tooltip-icon ms-3\" data-bs-toggle=\"tooltip\" data-bs-placement=\"bottom\" title=\"The sum of all savings or investment rates\">\n\t\t\t\t\t<span class=\"question-mark\">?<\/span>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t<span class=\"diagram-bolder-text\" id=\"deposits\"><\/span>\n\t\t<\/div>\n\t\t<div class=\"d-flex justify-content-between flex-column flex-lg-row mb-2\">\n\t\t\t<div class=\"d-flex\">\n\t\t\t\t<span class=\"diagram-bolder-text\">Total interest or total income<\/span>\n\t\t\t\t<div class=\"tooltip-icon ms-3\" data-bs-toggle=\"tooltip\" data-bs-placement=\"bottom\" title=\"All interest or income from capital gains and dividends\">\n\t\t\t\t\t<span class=\"question-mark\">?<\/span>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t<span class=\"diagram-bolder-text\" id=\"paymentReceived\"><\/span>\n\t\t<\/div>\n\t\t\n\t\t<p>\n\t\t\tIf you have <span class=\"fw-bold\"><span id=\"yearsText\">10 years<\/span>, <span id=\"months\">monthly<\/span> <span id=\"monthlyPrice\">100CHF<\/span> to <span id=\"annual\">5%<\/span><\/span> invest, your <span class=\"fw-bold\">Final capital <span id=\"finalCapital\">23.763CHF<\/span><\/span>. This is made up of <span class=\"fw-bold\"><span id=\"totalDeposit\">17.000CHF<\/span> Deposits <\/span> and <span class=\"fw-bold\"><span id=\"paymentReceivedText\">6.763CHF<\/span> Interest<\/span> or investment income.\t\t<\/p>\n\t\t\n\t\t\n\t\t<div class=\"horizontal-line\">\n\t\t\t\n\t\t<\/div>\n\t\t\n\t\t<h3  class=\"diagram-title\"><span id=\"Diagram\">\n\t\t\tDiagram\t\t<\/span><\/h3>\n\t\t <div class=\"chart-wrapper\"> \n            <canvas id=\"stackedChartID\"><\/canvas> \n        <\/div> \n\t<\/div>\n<\/div>\n   <script src= \"https:\/\/ajax.googleapis.com\/ajax\/libs\/jquery\/3.6.1\/jquery.min.js\"> \n    <\/script> \n    <script src= \"https:\/\/cdn.jsdelivr.net\/npm\/chart.js@4.0.1\/dist\/chart.umd.min.js\"> \n    <\/script> \n\n<script>\n\n\tlet initialCapital =document.querySelector('#anfangskapital');\n\tlet monthlySavings = document.querySelector('#monatliche');\n\tlet investmentPeriod = document.querySelector('#spardauer');\n\tlet annualInterestRate = document.querySelector('#zinssatz');\n\tlet payoutInterval =  12\/\/document.querySelector('#selectAussch\u00fcttungsintervall');\n\t\n\tlet tooltipelements = document.querySelectorAll(\"[data-bs-toggle='tooltip']\");\n\t\n\t\n\tdocument.addEventListener('DOMContentLoaded', ()=>{\n\t\ttooltipelements.forEach((el) => {\n\t\t\tnew bootstrap.Tooltip(el);\n\t\t});\n\t\tdocument.querySelector('#submitButton').addEventListener('click', function(event) {\t\t\n\t\t\tevent.preventDefault();\n\t\t\tevent.stopPropagation();\n\n\n\t\t\tlet initialCapitalValue =  parseFloat(initialCapital.value.replace(\/\\'\/g, ''));\n\t\t\tlet monthlySavingsValue = parseFloat(monthlySavings.value.replace(\/\\'\/g, ''));\n\t\t\tlet investmentPeriodValue = parseFloat(investmentPeriod.value.replace(\/\\'\/g, ''));\n\t\t\tlet annualInterestRateValue = parseFloat(annualInterestRate.value.replace(\/\\'\/g, ''));\n\t\t\tlet payoutIntervalValue = parseFloat(payoutInterval);\n\n\n\t\t\tvar futureValue = compoundInterest(initialCapitalValue, monthlySavingsValue, investmentPeriodValue, annualInterestRateValue, payoutIntervalValue);\n\n\t\t\tvar totalDeposits = calculateTotalDeposits(initialCapitalValue, monthlySavingsValue, investmentPeriodValue * payoutIntervalValue);\n\t\t\tvar interestPaymentsReceived = calculateInterestPaymentsReceived(initialCapitalValue, monthlySavingsValue, investmentPeriodValue, annualInterestRateValue, payoutIntervalValue);\n\n\n\t\t\tcreateChart(initialCapitalValue, monthlySavingsValue, annualInterestRateValue, payoutIntervalValue, investmentPeriodValue);\n\n\t\t\tdocument.querySelector(\"#yearsText\").innerText = investmentPeriodValue + \" years\";\n\n\t\t\tif(payoutInterval.value == 12){\n\t\t\t\tdocument.querySelector(\"#months\").innerText = \"monthly\";\t\n\t\t\t}else if(payoutInterval == 4){\n\t\t\t\tdocument.querySelector(\"#months\").innerText = \"quarterly\";\t\n\t\t\t}else{\n\t\t\t\tdocument.querySelector(\"#months\").innerText = \"yearly\";\t\n\t\t\t}\n\n\t\t\tdocument.querySelector(\"#monthlyPrice\").innerText = monthlySavingsValue.toLocaleString('en-US').replace(\/,\/g, '\\'') + \" CHF\";\n\t\t\tdocument.querySelector(\"#annual\").innerText = annualInterestRateValue + \"%\";\n\t\t\tdocument.querySelector(\"#finalCapital\").innerText =  parseInt(futureValue.toFixed()).toLocaleString('en-US').replace(\/,\/g, '\\'') + \" CHF\";\n\t\t\tdocument.querySelector(\"#totalDeposit\").innerText =  totalDeposits.toLocaleString('en-US').replace(\/,\/g, '\\'') + \" CHF\";\n\t\t\tdocument.querySelector(\"#paymentReceivedText\").innerText =  parseInt(interestPaymentsReceived.toFixed()).toLocaleString('en-US').replace(\/,\/g, '\\'') + \" CHF\";\n\n\n\t\t\tdocument.querySelector('#diagramWrapper').classList.remove(\"d-none\");\n\t\t\tdocument.querySelector('#paymentReceived').innerText  =  parseInt(interestPaymentsReceived.toFixed()).toLocaleString('en-US').replace(\/,\/g, '\\'') + \" CHF\";\n\t\t\tdocument.querySelector('#deposits').innerText  =  totalDeposits.toLocaleString('en-US').replace(\/,\/g, '\\'') + \" CHF\";\n\t\t\tdocument.querySelector('#total').innerText  =  parseInt(futureValue.toFixed()).toLocaleString('en-US').replace(\/,\/g, '\\'') + \" CHF\"\n\n\t\t\treturn false;\n\t\t})\n\t}, false);\n\t\n\t\n\n\tfunction compoundInterest(P, M, t, r, n) {\n\t\tr = r \/ 100;\n\t\tvar N = n * t;\n\t\tvar compoundInitial = P * Math.pow(1 + r \/ n, N);\n\t\tvar compoundMonthly = M * ((Math.pow(1 + r \/ n, N) - 1) \/ (r \/ n));\n\t\treturn A = compoundInitial + compoundMonthly;\n\t\t\n\t}\n\t\n\tfunction calculateTotalDeposits(initialCapital, monthlySavings, numberOfMonths) {\n\t\treturn initialCapital + (monthlySavings * numberOfMonths);\n\t}\n\n\tfunction calculateInterestPaymentsReceived(initialCapital, monthlySavings, investmentPeriod, annualInterestRate, payoutInterval) {\n\t\tvar N = payoutInterval * investmentPeriod;\n\t\tvar compoundInitial = initialCapital * Math.pow(1 + annualInterestRate \/ payoutInterval \/ 100, N);\n\t\tvar compoundMonthly = monthlySavings * ((Math.pow(1 + annualInterestRate \/ payoutInterval \/ 100, N) - 1) \/ (annualInterestRate \/ payoutInterval \/ 100));\n\t\tvar totalFutureValue = compoundInitial + compoundMonthly;\n\t\tvar totalDeposits = calculateTotalDeposits(initialCapital, monthlySavings, N);\n\t\treturn totalFutureValue - totalDeposits;\n\t}\n\t\n\tfunction calculateInterestPaymentsReceivedMonthly(initialCapital, monthlySavings, investmentPeriodInMonths, annualInterestRate, payoutInterval) {\n\t\tvar monthlyInterestRate = annualInterestRate \/ 12 \/ 100; \n\t\tvar N = payoutInterval * investmentPeriodInMonths; \n\t\tvar compoundInitial = initialCapital * Math.pow(1 + monthlyInterestRate, N);\n\t\tvar compoundMonthly = monthlySavings * ((Math.pow(1 + monthlyInterestRate, N) - 1) \/ monthlyInterestRate);\n\t\tvar totalFutureValue = compoundInitial + compoundMonthly;\n\t\tvar totalDeposits = calculateTotalDeposits(initialCapital, monthlySavings, investmentPeriodInMonths \/ 12); \n\t\treturn totalFutureValue - totalDeposits;\n\t}\n\n\t function createChart(initialCapitalVal, monthlySavingsVal, annualInterestRateVal, payoutIntervalVal, investmentPeriodVal){\n\t\t var myContext = document.getElementById(\"stackedChartID\").getContext('2d'); \n  \n\t\t let deposits = [];\n\t\t let paymentsReceiver = [];\n\t\t let period = [];\n\t\tif(investmentPeriodVal>2){\n\t\t\t for(let year = 1; year<=investmentPeriodVal; year++){\n\t\t\t\t period.push(year)\n\t\t\t\t deposits.push(calculateTotalDeposits(initialCapitalVal, monthlySavingsVal, year * payoutIntervalVal).toFixed() );\n\t\t\t\t paymentsReceiver.push( calculateInterestPaymentsReceived(initialCapitalVal, monthlySavingsVal, year, annualInterestRateVal, payoutIntervalVal).toFixed() )\n\t\t\t }\n\t\t}else{\n\t\t\tfor(let month = 1; month<=investmentPeriodVal*12; month++){\n\t\t\t\t period.push(month)\n\t\t\t\t deposits.push(calculateTotalDeposits(initialCapitalVal, monthlySavingsVal, month\/12 * payoutIntervalVal).toFixed() );\n\t\t\t\t paymentsReceiver.push( calculateInterestPaymentsReceivedMonthly(initialCapitalVal, monthlySavingsVal, month, annualInterestRateVal, payoutIntervalVal).toFixed() )\n\t\t\t}\n\t\t}\n\n\t\tlet chartStatus = Chart.getChart(\"stackedChartID\"); \/\/ <canvas> id\n\t\tif (chartStatus != undefined) {\n\t\t  chartStatus.destroy();\n\t\t}\n\t\t \n\t\t var myChart = new Chart(myContext, { \n\t\t\t type: 'bar', \n\t\t\t height:400,\n\t\t\t data: { \n\t\t\t\t labels: period, \n\t\t\t\t datasets: [{ \n\t\t\t\t\t label: 'Deposits', \n\t\t\t\t\t backgroundColor: \"gray\", \n\t\t\t\t\t data: deposits, \n\t\t\t\t\t stack: 'Stack 0', \n\t\t\t\t }, { \n\t\t\t\t\t label: 'Interest', \n\t\t\t\t\t backgroundColor: \"#36c591\", \n\t\t\t\t\t data: paymentsReceiver, \n\t\t\t\t\t stack: 'Stack 0', \n\t\t\t\t }], \n\t\t\t }, \n\t\t\t options: { \n\t\t\t\t maintainAspectRatio: false,\n\t\t\t\t interaction: { \n\t\t\t\t\t intersect: false, \n\t\t\t\t }, \n\t\t\t\t scales: { \n\t\t\t\t\t x: { \n\t\t\t\t\t\t stacked: true,  \/\/ prvo stacked\n\t\t\t\t\t\t title: {\n\t\t\t\t\t\t\t display: true,\n\t\t\t\t\t\t\t text: 'years'\n\t\t\t\t\t\t },\n\t\t\t\t\t },\n\t\t\t\t\t y: { \n\t\t\t\t\t\t stacked: true,\n\t\t\t\t\t\t title: {\n\t\t\t\t\t\t\t display: true,\n\t\t\t\t\t\t\t text: 'Total capital'\n\t\t\t\t\t\t }\n\t\t\t\t\t } \n\t\t\t\t }, \n\t\t\t\t responsive: true \n\t\t\t }\n\t\t }); \n\t }\n\n\t\n\t  function formatNumber(el) {\n\t\t  \n      var inputValue = el.value;\n\n      var numericValue = parseFloat(inputValue.replace(\/\\'\/g, ''));\n\n\n      if (!isNaN(numericValue)) {\n        var str =  numericValue.toLocaleString('en-US');\n        var formattedValue =str.replace(\/,\/g, '\\'');\n\n         el.value = formattedValue;\n      }\n    }\n    <\/script> \n<div style=\"height:30px\">\n\t\n\t\n<\/div>\n<div class=\"flex flex-col text-sm pb-25\">\n<article class=\"text-token-text-primary w-full focus:outline-none [--shadow-height:45px] has-data-writing-block:pointer-events-none has-data-writing-block:-mt-(--shadow-height) has-data-writing-block:pt-(--shadow-height) [&amp;:has([data-writing-block])&gt;*]:pointer-events-auto scroll-mt-[calc(var(--header-height)+min(200px,max(70px,20svh)))]\" dir=\"auto\" tabindex=\"-1\" data-turn-id=\"request-WEB:537e5502-c213-4f94-9cf3-a97fb72b9a61-161\" data-testid=\"conversation-turn-126\" data-scroll-anchor=\"true\" data-turn=\"assistant\">\n<div class=\"text-base my-auto mx-auto pb-10 [--thread-content-margin:--spacing(4)] @w-sm\/main:[--thread-content-margin:--spacing(6)] @w-lg\/main:[--thread-content-margin:--spacing(16)] px-(--thread-content-margin)\">\n<div class=\"[--thread-content-max-width:40rem] @w-lg\/main:[--thread-content-max-width:48rem] mx-auto max-w-(--thread-content-max-width) flex-1 group\/turn-messages focus-visible:outline-hidden relative flex w-full min-w-0 flex-col agent-turn\" tabindex=\"-1\">\n<div class=\"flex max-w-full flex-col grow\">\n<div class=\"min-h-8 text-message relative flex w-full flex-col items-end gap-2 text-start break-words whitespace-normal [.text-message+&amp;]:mt-1\" dir=\"auto\" data-message-author-role=\"assistant\" data-message-id=\"eb88ff4d-cecf-49d3-980a-81eb5978b5cd\" data-message-model-slug=\"gpt-5-2\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden first:pt-[1px]\">\n<div class=\"markdown prose dark:prose-invert w-full break-words light markdown-new-styling\">\n<p data-start=\"0\" data-end=\"344\">The compound interest effect is even more impressive with higher initial assets of CHF 100,000 and an annual return of 8%: After 10 years you will already have CHF 215,892 (+116%), after 20 years CHF 466,096 (+366%) and after 30 years you will be a millionaire &#8211; without any additional deposits.<\/p>\n<p data-start=\"346\" data-end=\"559\" data-is-last-node=\"\" data-is-only-node=\"\">In the article <a href=\"https:\/\/schweizerfinanzblog.ch\/en\/behavioral-finance-how-to-avoid-the-13-biggest-investment-mistakes\/\" target=\"_blank\" rel=\"noopener\">Behavioral Finance: How to avoid the 13 biggest investment mistakes<\/a>, we therefore describe misjudging the compound interest effect as one of the most serious investment mistakes of all.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n\n<h4 class=\"wp-block-heading\"><span id=\"Understanding_the_benefits_of_passive_investing\">Understanding the benefits of passive investing<\/span><\/h4>\n\n<p>Passive investing means investing based on an index and being <strong>satisfied<\/strong> with the <strong>market return<\/strong>. You won&#8217;t beat the market &#8211; but you don&#8217;t have to. Historically, the long-term average return on equities has been around 8% per year.  <\/p>\n\n<p>If you assume that company values will continue to grow in the long term thanks to innovation and productivity (with interim setbacks), broadly diversified equity ETFs are the obvious choice. They are the simplest and cheapest implementation of passive investing. <\/p>\n\n<p>On the other hand, there is active investing, which is particularly lucrative for asset managers. For you, however, it means significantly higher costs: 1-2% per year compared to often less than 20 basis points (&lt;0.20%) for ETFs. So it&#8217;s no wonder that hardly anyone manages to beat the market over the long term and after costs.  <\/p>\n\n<p>All beginnings are difficult &#8211; but with money education, your finances will become manageable instead of burdensome.<\/p>\n\n<p>You can find out why we are so convinced of ETFs in the article <a href=\"https:\/\/schweizerfinanzblog.ch\/en\/etfs-the-investment-revolution\/\" target=\"_blank\" rel=\"noopener\">ETFs: The investment revolution<\/a>.<br>We also recommend our series of articles <a href=\"https:\/\/schweizerfinanzblog.ch\/en\/invest-in-8-lessons\/\" target=\"_blank\" rel=\"noopener\">Learn to invest &#8211; in 8 lessons<\/a>.<\/p>\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"2560\" height=\"1707\" src=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2024\/01\/Finanzbildung_laptop-3087585-scaled.jpg\" alt=\"Financial forecasts\" class=\"wp-image-6324\"\/><figcaption class=\"wp-element-caption\">All beginnings are difficult, but thanks to money education, you&#8217;ll no longer struggle with your finances.<\/figcaption><\/figure>\n\n<h2 class=\"wp-block-heading\"><span id=\"Financial_resolution_no_2_Know_your_finances\">Financial resolution no. 2: Know your finances<\/span><\/h2>\n\n<h3 class=\"wp-block-heading\"><span id=\"Why_should_I_do_that-2\">Why should I do that?<\/span><\/h3>\n\n<p>A well-founded assessment will provide you with clarity about your financial situation. But that&#8217;s not all: you will also find out what your biggest expenses are and where the <strong>greatest<\/strong> <strong>savings potential<\/strong> naturally lies dormant.   <\/p>\n\n<h3 class=\"wp-block-heading\"><span id=\"How_do_I_implement_this-2\">How do I implement this?<\/span><\/h3>\n\n<p>When taking stock of your finances, you need to determine your <strong>income streams<\/strong> (active income such as earned income and passive income such as dividends), your most important <strong>expenditure items<\/strong> and your <strong>savings rate<\/strong> as the difference. With a monthly disposable household income of CHF 10,000 and expenditure of CHF 8,000, the savings rate is CHF 2,000 or the <strong>savings ratio<\/strong> is 20% (=2,000\/10,000). <\/p>\n\n<p>You also calculate your assets (essentially consisting of your cash, securities and real estate), any debts (e.g. education and consumer loans, mortgages) and the difference in your <strong>net assets<\/strong>. We consider net assets to be the <strong>most important and meaningful financial indicator<\/strong> on the path to financial freedom. This is because, unlike a high income, a high net wealth is associated with financial security, often in combination with passive income streams such as dividends.  <\/p>\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"2560\" height=\"1707\" src=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2024\/01\/Finanzensituation_finance-7529921-scaled.jpg\" alt=\"Financial forecasts\" class=\"wp-image-6325\" srcset=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2024\/01\/Finanzensituation_finance-7529921-scaled.jpg 2560w, https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2024\/01\/Finanzensituation_finance-7529921-768x512.jpg 768w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/><figcaption class=\"wp-element-caption\">Getting an overview of your own finances is an essential, albeit sometimes arduous, step on the road to financial freedom.<\/figcaption><\/figure>\n\n<p>To achieve financial freedom, it is therefore less important how much money you earn, but rather how much you save &#8211; and invest profitably. Before we get to that point, however, we need to focus on financial security. This brings us to the next resolution.  <\/p>\n\n<h2 class=\"wp-block-heading\"><span id=\"Financial_resolution_no_3_Pay_off_debts_build_up_a_nest_egg\">Financial resolution no. 3: Pay off debts &amp; build up a nest egg<\/span><\/h2>\n\n<h3 class=\"wp-block-heading\"><span id=\"Why_should_I_do_that-3\">Why should I do that?<\/span><\/h3>\n\n<p>If you live free of (consumer) debt, have existential risks insured and have a sufficient nest egg ready for uninsured, unforeseen events, the foundation for a carefree life has been laid. So you can <strong>enjoy the pleasant side of life<\/strong> and devote yourself to the non-financial challenges.   <\/p>\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1080\" height=\"620\" src=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2024\/01\/notgroschen_piggy-bank-850607-1080x620.jpg\" alt=\"Financial forecasts\" class=\"wp-image-6326\"\/><figcaption class=\"wp-element-caption\">Not always love at first sight: The emergency fund is intended to cover the financial consequences of unexpected and uninsured events.<\/figcaption><\/figure>\n\n<h3 class=\"wp-block-heading\"><span id=\"How_do_I_implement_this-3\">How do I implement this?<\/span><\/h3>\n\n<p>Before you start building up your assets, you should first<strong> reduce<\/strong> any<strong> debt.<\/strong> The focus here is on high-interest consumer debt, the interest on which is usually significantly higher than the expected increase in value of equity ETFs. Specifically: <\/p>\n\n<ul>\n<li data-start=\"257\" data-end=\"394\">\n<p data-start=\"259\" data-end=\"394\">Deactivate installment facility options for credit cards (the popular Certo! charges 12% p.a. for this, for example) and switch to free LSV or<\/p>\n<\/li>\n<li data-start=\"395\" data-end=\"473\">\n<p data-start=\"397\" data-end=\"473\">only use debit cards without an overdraft function instead of credit cards.<\/p>\n<\/li>\n<\/ul>\n<p>Once consumer debt has been paid off, it is essential to build up a <strong>nest egg<\/strong> for unforeseen events such as a high dentist bill or the unexpected replacement of a washing machine. Depending on your income and personal risk assessment, this should amount to around two to three months&#8217; salary. <\/p>\n<p data-start=\"0\" data-end=\"300\"><strong data-start=\"0\" data-end=\"12\">Important:<\/strong> In Switzerland, you are covered by law for many events that could threaten your livelihood, such as job loss, illness or accident. In addition to the compulsory insurance, it is worth taking out private liability insurance, as it can also protect you from financial ruin. <\/p>\n<p data-start=\"302\" data-end=\"543\" data-is-last-node=\"\" data-is-only-node=\"\">However, other insurance policies that only cover relatively minor financial risks (e.g. &#8220;all-round protection for your cell phone&#8221;) should be canceled. In the event of an emergency, such losses are better covered by your emergency fund. <\/p>\n<p>In our experience, the <a href=\"https:\/\/schweizerfinanzblog.ch\/en\/yuh-experience-critical-and-independent\/\" target=\"_blank\" rel=\"noopener\">smartphone bank Yuh<\/a> is particularly suitable for storing your nest egg: secure, separate from ongoing payment transactions in a separate savings pot, yet available at any time and &#8211; apart from historically low interest rate phases such as the current one &#8211; earning good interest. Account management is also free of charge. With our promotional code YUHSFB you can secure a starting bonus and support our blog at the same time.<\/p>\n\n<h4 class=\"wp-block-heading\"><span id=\"Exception_mortgage_debt\">Exception mortgage debt<\/span><\/h4>\n\n<p data-start=\"1253\" data-end=\"1736\">Mortgage debt is an important exception. These do not necessarily have to be repaid quickly &#8211; especially at historically low interest rates. Owner-occupied residential property is primarily a consumer good with the character of an asset and not a classic investment class. Nevertheless, it ties up a lot of capital in a single, less flexible property. Full amortization therefore increases the cluster risk because a large proportion of the assets are &#8220;set in stone&#8221;.    <\/p>\n<p data-start=\"1738\" data-end=\"1921\" data-is-last-node=\"\" data-is-only-node=\"\">In many cases, it therefore makes more sense to leave some of the assets invested and benefit from long-term return opportunities instead of amortizing the mortgage to the maximum.<\/p>\n\n<h2 class=\"wp-block-heading\"><span id=\"Financial_resolution_no_4_Increase_savings_rate\">Financial resolution no. 4: Increase savings rate<\/span><\/h2>\n\n<h3 class=\"wp-block-heading\"><span id=\"Why_should_I_do_that-4\">Why should I do that?<\/span><\/h3>\n\n<p>If you want to become financially free, there is no way around an <strong>ambitious savings rate<\/strong>. It is your key lever: the higher you set it, the faster you will achieve financial freedom and independence from your actively earned income. We describe how quickly this can happen in the article <a href=\"https:\/\/schweizerfinanzblog.ch\/en\/financial-freedom-hype-or-a-goal-worth-striving-for\/\">Financial freedom &#8211; hype or a goal worth striving for?<\/a>  <\/p>\n\n<h3 class=\"wp-block-heading\"><span id=\"How_do_I_implement_this-4\">How do I implement this?<\/span><\/h3>\n\n<p>As a reminder, the savings rate is expressed as a percentage and puts the savings rate (in CHF) in relation to your total income.<\/p>\n\n<p>But how can you increase the savings rate just like that? Admittedly, that&#8217;s easier said than done. And yet we are convinced that everyone can increase their savings rate. There are two levers at your disposal: Firstly, increase your income and secondly, reduce your spending.   <\/p>\n\n<p>The easiest and most effective way to increase your savings rate in special life situations is to avoid <strong>lifestyle inflation<\/strong> (income-related increase in consumption). This describes the phenomenon that the higher your income, the higher your standard of living and therefore your consumption &#8211; and the lower your savings rate. This correlation is scientifically well documented and applies to most people.  <\/p>\n\n<p>This is precisely why there is an enormous opportunity here: there is hardly any other phase in which you have better opportunities to come much closer to financial freedom during your lifetime than in precisely such situations with noticeable jumps in salary.<\/p>\n\n<h4 class=\"wp-block-heading\"><span id=\"An_example_from_our_own_experience\">An example from our own experience<\/span><\/h4>\n\n<p>During our studies, a modest lifestyle was mandatory for us. With our limited financial resources at the time, there was simply no alternative. Although we earned &#8220;proper&#8221; money for the first time after graduating, we hardly raised our standard of living for years. (Stefan still doesn&#8217;t own a car decades later.) The reason: we had become accustomed to a frugal lifestyle during our studies.    <\/p>\n\n<p><strong>After such life stage changes, it is often surprisingly easy to massively increase the savings rate from one day to the next &#8211; in extreme cases from 0 to 50% or more.  <\/strong>The other way round, however, i.e. a conscious downgrade in living standards, is much more difficult. Savings are then quickly perceived as painful restrictions. <\/p>\n\n<p>As mentioned, these are selected and rather rare, sometimes even one-off opportunities. Let&#8217;s now turn our attention to the more common situations in which you can increase your savings rate or your investments step by step. <\/p>\n\n<p>When it comes to income, you are dependent on the goodwill of your boss and your negotiating skills in the short term. In the longer term, however, you can increase your income in a targeted manner &#8211; for example through further training and taking on more responsibility or better-paid tasks. <\/p>\n\n<h4 class=\"wp-block-heading\"><span id=\"The_spending_lever_as_an_instant_savings_rate_booster\">The spending lever as an instant savings rate booster<\/span><\/h4>\n\n<p>The spending lever has the great advantage that it has an immediate effect.  <strong>Every franc you save directly increases your savings rate.<\/strong>  Therefore, go through your previously determined expenditure items and focus on the large items &#8211; this is where the greatest savings potential lies.<\/p>\n\n<p>It is often worth canceling contracts for cell phones and other devices as a precautionary measure. This gives you a strong negotiating position and also keeps the option of changing provider open. <\/p>\n\n<p>Changing health insurer is a real no-brainer in Switzerland. As the benefits of basic insurance are set by the state, you can switch to the cheapest health insurance company every year without any loss of benefits. In addition, the maximum deductible of CHF 2,500 is worthwhile for most people &#8211; provided you have a nest egg in case of emergency. This brings us to the next financial resolution.   <\/p>\n\n<h2 class=\"wp-block-heading\"><span id=\"Financial_resolution_no_5_Invest_regularly\">Financial resolution no. 5: Invest regularly<\/span><\/h2>\n\n<h3 class=\"wp-block-heading\"><span id=\"Why_should_I_do_that-5\">Why should I do that?<\/span><\/h3>\n\n<p data-start=\"0\" data-end=\"300\">Finally comes the most important part of a financially carefree life: investing. It is not only the most important, but also the one with the highest priority. The appropriate motto is: <strong data-start=\"201\" data-end=\"241\">invest today, consume tomorrow. <\/strong>Because the sooner you start, the more the compound interest effect will help you build up your wealth.  <\/p>\n<p data-start=\"302\" data-end=\"842\">If you don&#8217;t prioritize investing, there will be a thousand reasons to allocate your savings to consumption. Incidentally, this behavior is scientifically proven and is often explained by <a href=\"https:\/\/de.wikipedia.org\/wiki\/Parkinsonsche_Gesetze\" target=\"_blank\" rel=\"noopener\">Parkinson&#8217;s Law<\/a>. According to this law, we tend to fully utilize available resources. Applied to money, this means that regardless of our income, we tend to spend everything &#8211; unless we follow a clear, well thought-out plan.   <\/p>\n\n<h3 class=\"wp-block-heading\"><span id=\"How_do_I_implement_this-5\">How do I implement this?<\/span><\/h3>\n\n<p data-start=\"0\" data-end=\"106\">Based on your savings rate, it is now a matter of investing the money you have saved sensibly and profitably.<\/p>\n<p data-start=\"108\" data-end=\"289\">With an investment horizon of at least 10 years, you can use your savings installment &#8211; or part of it &#8211; to build up a global equity portfolio month by month with ETFs.<\/p>\n<p data-start=\"291\" data-end=\"458\">How high your equity allocation should be depends on your risk profile. This consists of two parts:<br data-start=\"394\" data-end=\"397\">your <strong data-start=\"404\" data-end=\"423\">risk capacity<\/strong> and your <strong data-start=\"435\" data-end=\"457\">risk appetite<\/strong>. <\/p>\n<p data-start=\"460\" data-end=\"864\">Risk capacity can be determined objectively and depends on assets, income, expenditure and investment horizon.<\/p>\n<p data-start=\"460\" data-end=\"864\">Risk tolerance is subjective and describes how well you can deal with price fluctuations. Specifically: How does it feel for you if your portfolio is down 10, 20 or even 50% at times? The better you can deal with this, the higher your equity allocation can be.  <\/p>\n<p data-start=\"866\" data-end=\"985\"><strong>Important:<\/strong> Even broadly diversified equity portfolios can suffer temporary losses of up to 50% in extreme phases.<\/p>\n<p data-start=\"987\" data-end=\"1122\">Regardless of your equity allocation, asset accumulation should be as rule-based and automated as possible using an ETF savings plan.<\/p>\n<p data-start=\"1124\" data-end=\"1402\">Specifically, you set up a standing order with your bank to top up your securities portfolio &#8211; with an online broker or robo-advisor &#8211; at the beginning of each month. In addition, you activate another standing order for your securities-based pillar 3a. <\/p>\n<p data-start=\"1404\" data-end=\"1533\" data-is-last-node=\"\" data-is-only-node=\"\">You can find out more about the advantages of savings plans in the article <a href=\"https:\/\/schweizerfinanzblog.ch\/en\/etf-savings-plan-switzerland-3-strong-reasons-for-the-autopilot-strategy\/\" target=\"_blank\" rel=\"noreferrer noopener\" data-type=\"post\" data-id=\"6515\">ETF savings plan Switzerland: 3 strong reasons for the autopilot strategy.<\/a><\/p>\n\n<p class=\"has-text-align-center\"><span style=\"color: #37c392;\"><em>&#8211; Partner offer &#8211;<\/em><\/span><\/p>\n\n<p class=\"has-text-align-center\"><em>Saxo Bank now offers all savings plans without purchase fees &#8211; it is also possible to save in several ETFs at the same time. You can find out more in our <a href=\"https:\/\/schweizerfinanzblog.ch\/en\/saxo-bank-experience-funded-and-critical\/\" data-type=\"post\" data-id=\"13052\">detailed test report<\/a>. <\/em><\/p>\n\n<figure class=\"wp-block-image size-full d-none d-lg-block\"><a href=\"https:\/\/schweizerfinanzblog.ch\/en\/saxo-bank-experience-funded-and-critical\/\"><img decoding=\"async\" src=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2025\/10\/Saxo_Review-Banner_Desktop_EN_neu.png\" alt=\"\" class=\"wp-image-13437\"\/><\/a><\/figure>\n\n<figure class=\"wp-block-image size-full d-lg-none\"><a href=\"https:\/\/schweizerfinanzblog.ch\/en\/saxo-bank-experience-funded-and-critical\/\"><img decoding=\"async\" src=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2025\/10\/Saxo_Review-Banner_Mobile_EN_neu.png\" alt=\"\" class=\"wp-image-13440\"\/><\/a><\/figure>\n\n<p class=\"has-text-align-center\"><span style=\"color: #37c392;\"><em>&#8211; &#8211; &#8211; &#8211; &#8211;<\/em><\/span><\/p>\n\n<h2 class=\"wp-block-heading\"><span id=\"Conclusion_on_the_financial_resolutions\">Conclusion on the financial resolutions<\/span><\/h2>\n\n<p data-start=\"34\" data-end=\"588\">We believe that implementing these five financial resolutions is the <strong data-start=\"104\" data-end=\"148\">foundation for your financial freedom<\/strong>. Success depends on two factors: your <strong data-start=\"206\" data-end=\"223\">money mindset<\/strong> and how well you organize your finances. You develop the former through financial education and practical experience as an investor. You can achieve the latter through clarity about your financial situation, the consistent automation of your investments via an ETF savings plan and &#8211; last but not least &#8211; by <a href=\"https:\/\/schweizerfinanzblog.ch\/en\/our-recommendations\/\" target=\"_blank\" rel=\"noopener\">choosing suitable financial partners and solutions wisely<\/a>.   <\/p>\n<p data-start=\"590\" data-end=\"924\" data-is-last-node=\"\" data-is-only-node=\"\">As mentioned at the beginning, our financial resolutions are not about accumulating as much money as possible for the sake of it. Rather, a high net worth should give you <strong>financial independence and real self-determination outside the hamster wheel<\/strong>. A goal that not only enriches your bank account, but also your life. <\/p>\n\n<h2 class=\"wp-block-heading\"><span id=\"This_might_also_interest_you\">This might also interest you  <\/span><\/h2>\n\n<link rel=\"stylesheet\" href=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/themes\/schweizerfinanzblog\/components\/post-list-component\/post-list-component.css\">\n\n<div class=\"post-list-componenet pt-2 pb-4\">\n\t<div class=\"row\">\n\t\t\t\t\t\t\n\t\t <div class=\"col-xl-6\">\n\t\t\t <a class=\"text-decoration-none\" href=\"https:\/\/schweizerfinanzblog.ch\/en\/etf-savings-plan-switzerland-3-strong-reasons-for-the-autopilot-strategy\/\">\n\t\t\t\t<div class=\"d-flex post-list-card\">\n\t\t\t\t\t<div class=\"post-list-image \">\n\t\t\t\t\t\t<div class=\"image-wrapper\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2024\/12\/Titelbild_V1_ETF-Sparplaene-Schweiz_optimiert_EN.png\" class=\"attachment-1920x1297 size-1920x1297 wp-post-image\" alt=\"\" srcset=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2024\/12\/Titelbild_V1_ETF-Sparplaene-Schweiz_optimiert_EN.png 1920w, https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2024\/12\/Titelbild_V1_ETF-Sparplaene-Schweiz_optimiert_EN-768x432.png 768w, https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2024\/12\/Titelbild_V1_ETF-Sparplaene-Schweiz_optimiert_EN-1536x864.png 1536w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/>\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div class=\"post-list-title px-2 d-flex align-items-center\">\n\t\t\t\t\t\t<p class=\"\">ETF savings plan Switzerland: 3 strong reasons for the autopilot strategy<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t\n\t\t <div class=\"col-xl-6\">\n\t\t\t <a class=\"text-decoration-none\" href=\"https:\/\/schweizerfinanzblog.ch\/en\/behavioral-finance-how-to-avoid-the-13-biggest-investment-mistakes\/\">\n\t\t\t\t<div class=\"d-flex post-list-card\">\n\t\t\t\t\t<div class=\"post-list-image \">\n\t\t\t\t\t\t<div class=\"image-wrapper\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1920\" height=\"842\" src=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2022\/10\/Titelbild_head-2709732_neu.jpg\" class=\"attachment-1920x1297 size-1920x1297 wp-post-image\" alt=\"Behavioral Finance\" srcset=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2022\/10\/Titelbild_head-2709732_neu.jpg 2450w, https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2022\/10\/Titelbild_head-2709732_neu-768x337.jpg 768w, https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2022\/10\/Titelbild_head-2709732_neu-1536x673.jpg 1536w, https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2022\/10\/Titelbild_head-2709732_neu-2048x898.jpg 2048w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/>\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div class=\"post-list-title px-2 d-flex align-items-center\">\n\t\t\t\t\t\t<p class=\"\">Behavioral finance: How to avoid the 13 biggest investment mistakes<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t\n\t\t <div class=\"col-xl-6\">\n\t\t\t <a class=\"text-decoration-none\" href=\"https:\/\/schweizerfinanzblog.ch\/en\/buy-and-hold-5-strong-advantages\/\">\n\t\t\t\t<div class=\"d-flex post-list-card\">\n\t\t\t\t\t<div class=\"post-list-image \">\n\t\t\t\t\t\t<div class=\"image-wrapper\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1721\" height=\"1297\" src=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2021\/09\/Titelbild_Sanduhr_hourglass-620397_neu.jpg\" class=\"attachment-1920x1297 size-1920x1297 wp-post-image\" alt=\"Buy and Hold\" srcset=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2021\/09\/Titelbild_Sanduhr_hourglass-620397_neu.jpg 2400w, https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2021\/09\/Titelbild_Sanduhr_hourglass-620397_neu-768x579.jpg 768w, https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2021\/09\/Titelbild_Sanduhr_hourglass-620397_neu-1536x1158.jpg 1536w, https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2021\/09\/Titelbild_Sanduhr_hourglass-620397_neu-2048x1544.jpg 2048w\" sizes=\"(max-width: 1721px) 100vw, 1721px\" \/>\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div class=\"post-list-title px-2 d-flex align-items-center\">\n\t\t\t\t\t\t<p class=\"\">Buy and Hold: 5 strong advantages<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t\n\t\t <div class=\"col-xl-6\">\n\t\t\t <a class=\"text-decoration-none\" href=\"https:\/\/schweizerfinanzblog.ch\/en\/financial-freedom-hype-or-a-goal-worth-striving-for\/\">\n\t\t\t\t<div class=\"d-flex post-list-card\">\n\t\t\t\t\t<div class=\"post-list-image \">\n\t\t\t\t\t\t<div class=\"image-wrapper\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1920\" height=\"1200\" src=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2019\/07\/paragliding-1245837.jpg\" class=\"attachment-1920x1297 size-1920x1297 wp-post-image\" alt=\"\" srcset=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2019\/07\/paragliding-1245837.jpg 2048w, https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2019\/07\/paragliding-1245837-768x480.jpg 768w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/>\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div class=\"post-list-title px-2 d-flex align-items-center\">\n\t\t\t\t\t\t<p class=\"\">Financial freedom &#8211; hype or a goal worth striving for?<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n<\/div>\n<h2 class=\"wp-block-heading\"><span id=\"Updates\">Updates<\/span><\/h2>\n\n<p>2026-01-22: Article comprehensively updated.&nbsp;<\/p>\n\n<p>2025-03-11: Inflation rates and other data updated. 5. financial forecast supplemented by knowledge of own risk profile, consisting of risk capacity and risk appetite.   <\/p>\n\n<h2 class=\"wp-block-heading\"><span id=\"Disclaimer\">Disclaimer<\/span><\/h2>\n\n<p><strong>Disclaimer: <\/strong>Investing involves risks of loss. You must decide for yourself whether you want to bear these risks or not. <\/p>\n\n<p><strong>Errors excepted:<\/strong> We have written this article on five financial resolutions for the new year to the best of our knowledge and belief. Our aim is to provide you as a private investor with the most objective and meaningful financial information possible. However, if we have made any mistakes, forgotten any important aspects and\/or are no longer up to date, we would be grateful if you could let us know.  <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Dry January, veganuary, more sport or all of the above? As sensible as these and other resolutions may be, unfortunately they are often short-lived. We want to change that, at least for your money. Because once your finances are properly organized, they will run like clockwork for decades. In this article, we&#8217;ll show you how [&hellip;]<\/p>","protected":false},"author":1,"featured_media":9044,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[182,181],"tags":[],"class_list":["post-9453","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-basics-en","category-financial-freedom"],"acf":[],"_links":{"self":[{"href":"https:\/\/schweizerfinanzblog.ch\/en\/wp-json\/wp\/v2\/posts\/9453","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/schweizerfinanzblog.ch\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/schweizerfinanzblog.ch\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/schweizerfinanzblog.ch\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/schweizerfinanzblog.ch\/en\/wp-json\/wp\/v2\/comments?post=9453"}],"version-history":[{"count":16,"href":"https:\/\/schweizerfinanzblog.ch\/en\/wp-json\/wp\/v2\/posts\/9453\/revisions"}],"predecessor-version":[{"id":15129,"href":"https:\/\/schweizerfinanzblog.ch\/en\/wp-json\/wp\/v2\/posts\/9453\/revisions\/15129"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/schweizerfinanzblog.ch\/en\/wp-json\/wp\/v2\/media\/9044"}],"wp:attachment":[{"href":"https:\/\/schweizerfinanzblog.ch\/en\/wp-json\/wp\/v2\/media?parent=9453"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/schweizerfinanzblog.ch\/en\/wp-json\/wp\/v2\/categories?post=9453"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/schweizerfinanzblog.ch\/en\/wp-json\/wp\/v2\/tags?post=9453"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}