So you’ve got some money sitting in a bank account. Congrats! Step 1 complete: you didn’t spend it all on overpriced berries, galonkläder, or yet another water bottle. But now what?
I used to think the answer was obvious: shove it into a savings account, feel virtuous, ignore it forever. But it turns out that’s like storing your winter coats in the freezer — not wrong, just wildly unoptimized.
Let’s fix that.
Step Two: Break Your Money Into Buckets
Every krona has a job. Some need to stay close and ready for action, while others should be off at financial boarding school learning to grow.
Bucket 1: Emergency Fund
“Everything’s fine… until it’s not.”
Think 3–6 months of expenses. This is your “child threw the iPad down the stairs again” money.
Where it goes:
- A sparkonto (savings account) with ränta (interest)– 1.5 to 2.2% rörlig ränta (variable interest), vastly better than 0–0.5% at your primary bank.
- Popular sparkontos: Avanza Sparkonto (1.5%), Nordnet Räntekonto (1.6%), Klarna (Flex Savings at 1.8%), Northmill (2.2% variable interest rate) (interest rates as of July 2025). Compricer has a good page on more options (in Swedish)
Why:
- Immediate access, no lock-in period
- No risk
- Peace of mind, Swedish-style
Don’t even think about investing this. This is cash that stands between you and panic.
Bucket 2: Short-Term Goals (0–3 years)
Trip to Maldives? New sofa? Laser eye surgery so you can stop reading ingredient lists like a mole?
Where it goes:
- Still a sparkonto if the goal is <1 year but try a fixed-term one that has higher interest rates than variable ones
- The sparkontos mentioned in bucket 1 also offer fixed-term accounts. HoistSpar is a sparkonto not mentioned above that offers upto 2.9% fixed interest rate (as of July 2025)
- If 1–3 years: a kort räntefond (short-term bond fund) in an ISK
- Like Spiltan Räntefond Sverige or Länsförsäkringar Kort Räntefond
Returns are meh, but the goal here is stability, not thrills.
Bucket 3: Medium-Term Goals (3–7 years)
Sabbatical? Business idea? Fleeing to Skåne because Stockholm is too cold?
This is where we upgrade from savings to investing.
Where it goes:
- ISK with index funds
- Sample mix:
- 50–70% global index (e.g. Länsförsäkringar Global Indexnära)
- 20–30% Swedish market (e.g. Avanza Zero)
- 10–20% spice: Europe, ESG, or investmentbolag
You want modest growth, low fees, and nothing dramatic.
Bucket 4: Long-Term Goals (7+ years)
Retirement. Or revenge wealth. Or just fewer arguments about groceries.
This is the “let it grow” bucket. Time is your biggest ally.
Where it goes:
- ISK or KF (Kapitalförsäkring)
- 100% index funds, or mix in some Swedish investment companies if you’re feeling fancy
Suggested mix:
- 70% Global
- 20% Sweden
- 10% Fun stuff (Asia, green tech, etc.)
Do not look at this account when the market dips. Just don’t.
Bonus Bucket: Guilt-Free Splurge Fund
For joy. For magic. For Beyoncé tickets.
No judgment. Life’s short. Budget for delight.
Okay But… How Does This Look in Real Numbers?
Let’s say you have 30,000 kr in your account right now after accounting for your monthly expenses. You divide them like this:
| Bucket | Amount | Where It Goes |
|---|---|---|
| Emergency Fund | 9000 kr (30%) | Sparkonto with ränta |
| Short-Term (0-3 years) | 3000 kr (10%) | Sparkonto (fixed-term) or bond fund in ISK |
| Medium-Term (3-7 years) | 9000 kr (30%) | ISK with index funds |
| Long-Term (7+ years) | 7500 kr (25%) | ISK or KF with long-term holdings |
| Guilt-Free Splurge | 1500 kr (5%) | Regular bank account |
The Point Is This:
Don’t treat all your money like it has the same job. Your dentist doesn’t babysit your kids. Your vacuum cleaner doesn’t cook dinner (if it does, DM me immediately). Your money shouldn’t all live in the same sad savings account doing nothing.
Give each krona a job.
Let them work. Let them grow. Let them go forth and multiply.
Your future self — and your future budget — will thank you.
Got thoughts? Questions? Drop them below — I read everything and reply when the kids are asleep and I’m not halfway through a pension crisis.