Savings plan instead of lottery. Start in 10 minutes
Your lottery ticket costs €1.20 per tip. An ETF savings plan starts at €1 with most brokers. The difference: with a savings plan, on average you end up with more than you put in.
This article isn't a maths deep-dive (that's our pillar piece). This one is about action: ten minutes from reading to doing.
What is an ETF savings plan?
An ETF is a fund that automatically invests in hundreds of companies at once. Instead of buying a single share (risky), a „world ETF" buys a tiny slice of ~1,500 large companies globally. When the world economy grows, your slice grows with it.
A savings plan means: every month, a fixed amount goes in automatically. You don't time anything, you don't watch anything. Set up, forget, check back in 10 years.
Three steps to a savings plan
Step 1. Open a broker account (5 minutes)
You need a securities account with a broker. With most online brokers this is free and takes ~5 minutes online (ID upload, a couple of questions about your investing experience). You're not handing anything over you can't get back. Securities stay your property; the broker just stores them.
Step 2. Set up the savings plan
After opening, search for „MSCI World" or „S&P 500". Pick an ETF (similar ones are similarly good. Selection criterion: low ongoing costs, „TER" below 0.30 % p.a.). Then „set up savings plan", enter an amount (e.g. €25/month), choose a date (e.g. the 1st of each month). Done.
Step 3. Forget about it
Literally. Don't check it every week. Don't panic when markets dip. The savings-plan logic only works because you keep going stubbornly. Including in bad phases. Whoever survives the first few months has the bulk of the discipline already behind them.
What happens to your money. Three examples
Assumption: 7 % return p.a. (long-term S&P 500 average, monthly compounding). No inflation correction. Nominal end values:
| Rate | Duration | Total invested | Final value (~7 %) | Gain |
|---|---|---|---|---|
| €5/week | 10 years | €2,600 | ~€3,700 | +€1,100 |
| €5/week | 20 years | €5,200 | ~€11,300 | +€6,100 |
| €5/week | 30 years | €7,800 | ~€27,000 | +€19,200 |
The effect is called compound interest. At 30 years, more than half of the final value is „interest on interest". That's why time is the most important lever. More important than the size of the rate.
„But I still want to play the lottery"
You don't need to give it up. Play once a month instead of once a week. Put the other €15–20 into the savings plan. After 30 years you still have your hope-dose and a real cushion. Hope costs nothing; building a money pile only costs time.
FAQ
Which broker should I pick?
We deliberately don't endorse one. The major German online brokers are similar on the basics: free custody accounts, free savings-plan executions, comparable ETF selection. Comparison sites like finanztip.de or justetf.com are a solid starting point if you want to compare objectively.
MSCI World or S&P 500, what's the difference?
S&P 500 is the 500 largest U.S. companies. MSCI World is ~1,500 large companies from 23 industrialized countries, but still ~70 % U.S.-weighted. Returns over 30+ years are very similar; the MSCI World is more broadly diversified. Both are solid long-term; it isn't a big decision.
What happens if the market crashes?
Short-term: a paper loss, your portfolio shows red. Long-term: very little. The S&P 500 has weathered multiple crashes since 1955 (1973, 1987, 2000, 2008, 2020) and recovered each time. Investors who kept their savings plan running actually benefited, since they bought in cheaply during the dip. Crashes are the risk; that's what the return is paid for.
Are ETF returns taxed in Germany?
Yes. Realized gains and distributions are subject to capital-gains tax (25 % flat plus solidarity surcharge, plus church tax if applicable). The first €1,000 in gains per year are tax-free via the saver's allowance (as of 2026). Even after tax, the math against the lottery is clearly positive, see the FAQ in the pillar article.
How much per month makes a savings plan worthwhile?
Most brokers allow savings plans starting at €1/month. Is that worth it? Mathematically: yes, every regular contribution compounds. Practically: below €25/month the effect is so small that most people forget about the plan before it amounts to anything. We recommend €25–50/month as a starting point: noticeable but not painful. You can always raise later.
Disclaimer
Not investment advice. We're showing historical maths. ETFs can fall too; short-term swings are normal. Past performance is no guarantee for the future. Over long horizons, the broad market has been very stable, though. See the full calculation with 70 years of data.