Is Interest THAT Low???

My husband likes to play it safe. He was adamant about an emergency fund that equals five months of living expenses. I think that’s just too much. Yesterday he had a look at his savings account and he was shocked to see the amount of interest he receives on his hard-earned euros. Is interest THAT low??? (It’s at 1.8% right now). Yes, honey, it is. And we’re paying 3.6% interest on the interest-only part of our mortgage…and inflation is roughly 2%…so yes….your savings are worth less and less every day. Wanna throw a bunch of it into that interest-only mortgage, sweetie??

Don’t think I’ll get my husband to do just that. It’s a good thing we are opposites, ying and yang that’s us. 

All I’m thinking is: if we would throw half of that emergency fund into the mortgage we would own 27.37% of our home…instead of the 24.51% score right now.

Besides that, index investing has become a much better option than saving. 


Mrs EconoWiser



6 thoughts on “Is Interest THAT Low???

  1. Mama Minou

    Wow, this situation sounds familiar!
    As you say, I suppose it’s good to have that relationship balance.
    My husband and I have decided to share the household expenses but go our own ways with any “extra”. It’s not the best strategy for growing our “stash”, but it’s what he is comfortable with.
    I can’t wait to start investing (in index funds) outside of retirement accounts!

  2. Bart N.

    Hi Mrs EconoWiser,
    I’ve been following your blog for a while now and see you talking a lot about this index fundings and finding the best broker etc, etc.
    But what I can’t really find on your blog is like a Index Funds #101 for dummies… Since it all sounds as an interesting option for ‘our money’, I really would like to know more about it, but the very basics of it are hard to find… at least for me… so please could you point me in the right direction.

    1. econowiser Post author

      Hi there,
      The best book in Dutch (and pretty much the only one) is “De Schitterende Eenvoud Van Indexbeleggen” door Wintermans. I learned how these things work and what strategy to use.

      I also suggest you read JL Collins’ view on investing starting with his first post on investing and working your way through all blogposts about the topic:

      And of course MMM’s explanation on the whole thing:

      Basically it comes down to: buy Vanguard indexfunds. Stocks-only (S&P 500 or international trackers for example MSCI, a small bit can be European or emerging markets) when you’re in your twenties and thirties (maybe also fourties, this is the money making phase). Start adding bonds and REITs into the mix when in your fourties and onwards (asset allocation) and you’ll be fine.

      Good luck!


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