Swiss Review 6/2019

Swiss Review / November 2019 / No.6 17 scared of negative interest rates. The authors of the sur- vey therefore concluded, “The low interest rate environ- ment does not appear to be a major motivation for peo- ple to keep money at home or in safe-deposit boxes.” Admittedly, interest rates have fallen further and bank charges have continued to rise since the survey was pub- lished. “Many don’t and can’t save at all” Based on the above, we can assume that the Swiss have not (yet) changed their savings behaviour despite the low in- terest rates. Academic findings underpin this view. For ex- ample, a study on German savers by the Leibniz Centre for European Economic Research (ZEW) revealed that the av- erage citizen had until now barely changed his or her sav- ings behaviour as a result of low interest rates. However, Flubacher of VZ VermögensZentrum believes that the ac- tual reason for this may be quite simple: “Many don’t and can’t save at all,” he says. Indeed, the ZEW study points to a specific group of peoplewho are in fact changing their ap- proach and investing in securities: young, wealthy, risk-tol- erant men (see feature on page 17). Finally, another finding indicates howconcernedmany savers are despite the fact that little in their behaviour has changed to date: more than a third of those surveyed said that they would withdraw their money from the bank if negative interest on savings was introduced across the board. But what theywould dowith all the cash remains to be seen. A thrifty lifestyle Thomas Kovacs is 23 and, notwithstanding this tender age, has already thought long and hard about money and how to economise. He has even produced a public chronicle of his jour- ney so far – on a financial blog and YouTube channel called “Der Sparkojote” (“The Thrifty Coyote”). Kovacs was only 17 when he opened his own online game shop. Since then, he has amassed assets worth 182,000 francs. The 23-year-old invests in the stock market and lives off the money from his online shop, his blog and his YouTube channel. His outgoings are no more than 2,000 francs a month. This hard-working, disciplined minimalist chooses not to spend money on expensive fashion, lux- urious holidays, restaurant meals, or nights out. “Because none of this enhances my quali- ty of life.” He openly shares details of all his invest- ments and finances in his blog and videos. Ultimately, his aim is to gain financial free- dom and live the way he wants. “I like to focus on what really matters in life. Saving money is a by-product of this approach.” He learned a lot at school, Kovacs explains, but nothing about what he calls “the most important life skill”: managing money – a quality that is actually becoming essential, he believes, not least with advancing age and in the current interest rate climate. Each of Kovacs’s uploaded videos attract several thousand clicks, especially from 18- to 30-year-old men – an indication of how much his message is also engaging young people. (GUM) The 23-year-old Zurich-based financial blogger Thomas Kovacs lives a minimalist, economi- cal lifestyle aimed at achieving maximum financial freedom.