Financial Advice: Managing Money Wisely – Tips from Nikolaus Braun

In Germany, most people are convinced that buying a home is always the best possible investment. Yet Nikolaus Braun, one of the country’s most widely followed financial advisors, challenges this assumption: in his view, owning a home is often a mediocre investment, sometimes even a trap. His memorable quote is: “If money doesn't make you happy, you're probably spending it the wrong way.” Braun's argument is simple but uncomfortable. We grow up believing that financial security means owning a home, but this conviction is more emotional than rational. True well-being comes when money is used to increase freedom and reduce everyday worries, not to pursue status or cultural norms. Braun doesn't just offer technical advice. He recounts having seen clients spend nearly all their capital to buy apartments in neighborhoods that depreciate or require unforeseen expenses for decades. He recalls one case in particular: a couple, both in their forties, who invested all their savings in a home in an area that seemed to be on the rise. After seven years, the neighborhood had lost its appeal, condo fees had risen, and the house was worth less than what they had paid for it. They had chosen the house “because everyone does,” overlooking the real goal: to live better, not simply to own. Braun points out that fear of loss dominates Germans' financial decisions. Instead of focusing on growth, people try to avoid mistakes at all costs. But, he says, this leads to stagnant choices: people prefer the apparent security of a brick-and-mortar property, without realizing that liquidity and flexibility are often better strategies. A surprising fact: over the past few decades, stocks and mutual funds have, on average, outperformed homes, even in Germany. However, memories of the housing crisis and the fear of losing everything still drive people to buy property rather than making well-considered, diversified investments. Braun encourages us to think the other way around: instead of asking, “What can I lose?”, the right question is, “How can I grow what I have without letting fear hold me back?” Many people think that investing is a gamble for experts, but he insists that all it takes is a bit of discipline and the ability to distinguish between true desires and social pressure. There is one aspect that no one disputes: What happens if, in an attempt to avoid all risk, we miss out on opportunities for happiness and freedom? Braun himself says he learned this lesson late, after accumulating savings that he had left untouched for years “out of prudence,” and realizing that true security only came when he used that money to create room for choice in his life. Living where you want, changing jobs without fear, helping those you love: according to him, these are the true returns. The key concept is that a home is not automatically a means of well-being—financial freedom is built through active choices, not through cultural automatisms. If all this has made you rethink your sense of security, on Lara Notes you can press I'm In – it's not a heart; it's your way of saying that this idea is now yours. And if you happen to have an argument with someone who says that “buying a house is always better,” on Lara Notes, you can tag them with Shared Offline: that way, the conversation stays put—it doesn't disappear like it usually does. This Note comes from DER SPIEGEL and has saved you several minutes compared to reading the original article.