I read an article a few days ago that addressed this with savings and amortization. For many, this is an important issue that can have a major impact on the economy in the longer term.
You can read the article itself here as I do not intend to reproduce it in its entirety. But in short you can say that this is an article where you have asked private economists at Swedbank, SEB and Länförsäkringar what they think about this issue.
The answer you get from these is simplified
That they think you should get a down loan if you have one on the house etc. to 75% of the value and that after that you should start both saving and amortizing at the same time. And of course this is a very good advice. But at the same time, I just want to express my own thoughts on this.
Then it should be said that I am not an expert as these people are, but I am just an ordinary private person who has his own thoughts. The first thing I think you should think about is what people are giving these advice.
These are people who work at banks and have their own interests
They obviously want us to have both loans and savings with them and therefore it is no wonder that they tell us to both save and repay at the same time instead of, for example, repaying the loans first which reduces the chance of them staying as customers . But then you should not distrust them too much for this as there must not be a bad advice for this which I also do not believe. The important thing is just to be aware of the situation.
Then you should also think about what is most important
Very often, I think that everything is about getting as much money as possible. If this is the goal and you go on old statistics, it is clear that you should invest money as this often pays much more than amortization.
But at the same time you have to wonder if it is not better to amortize as much as possible as this is a safe investment that can make you feel safer in life. Because if it gets tougher with your own finances in the future, in my eyes it is nice to have as low a loan as possible. An investment in shares, etc., you never know if it will pay off, but it can even lose value.
But that said, this is a good article to read and then ponder. The important thing is that you then make a decision that feels right for you in your own situation. What the experts or even I say should only look like tips. It’s what you feel yourself to decide.