This is a very interesting question that one really should ask. Unfortunately, the answer is not very simple in my opinion, but there are many different factors that must be taken into account.
What you have for any personality will greatly influence the decision.
For example, I am more likely to amortize than I choose to save. This is because I don’t really like to take risks with the economy. Because we should have realized for ourselves that it is a risk if you choose to save the money instead of using them for extra repayments.
If the investment is successful, you will win to save the money. However, if the investments are not good, there is a risk of even going back on the saved money. And then of course it would have been better to pay for this money. An extra repayment is actually an investment that will yield returns in the same size as the interest rate is high on the loan.
Which situation the world and the Swedish economy are in also affects what choice you should make.
If the situation is bad, the risk becomes greater with all forms of investment. At the same time, one should also think about the job situation, because if it is not sure, this can control the choices strongly.
If the market is doing well, there are instead better chances of making good investments, which in this case can make it more interesting to invest the extra money.
If you live on the margins all the time, it is usually better to make the safe choice in the form of amortizing extra. This means that the fixed monthly costs will be lower and thus the margins will be larger.
If you have a very strong economy instead, it can be a place to save money instead of being able to cope with a loss on the sum. The possibilities are greater.
Interest on the loan
What the loan or loans have for any interest rate is also a big factor when it comes to amortizing or saving money. A mortgage loan with only one per cent interest rate is not as important to repay extra on as a private loan with say 13% interest rate.
Here is my clear tip that you pay off extra if it is the question of expensive loans as it is actually a very good return on invested money.
Here I have just listed some things that affect whether to amortize or save. Of course, there are many more that you will probably find yourself. The important thing is, as always, that you really think through before making a decision.
I myself, as it is certainly felt fond of amortizing, as I am not particularly fond of having debts and happy to give up a little opportunity for big profits to get rid of them. Therefore, my basic recommendation is to repay. But this is just your own opinion.