Does Europe have accounts similar to HYSA? High yield savings accounts get 3-4% interest right now in the US. That is where emergency and shorter term money can be parked without losing to inflation.

If you dont have access to a hysa I would invest in a MMF or money market fund, again these are relatively low return but keep pretty close pace with inflation. Good for shorter term investing.

For when you arent going to touch the money for 5-10y+ then an ETF or index fund makes sense. Yes, the stock market is gambling but historically over long periods the average goes up.

The Gone Fishin’ Portfolio by Alexander Green should be required reading for everyone. It breaks investing down into simple and understandable terms and presents a method for investing that is almost garunteed to stay ahead of inflation by quite a comfortable margin.

In your position, if you feel you have enough for your down payment, maybe “the market” isn’t the best place for it after all. There is risk to it, and in your position, the risk of it all going down 10% suddenly is not worth the reward of higher returns five or ten years down the road – you will need it before then. (And if the US tanks the global economy, but your nest egg is not exposed, then that may put you in a better position.)

However, there are probably better places to put that money than a bank account, which will bring a better return while you decide what to do. There are money market funds whose objective is to invest in safe short-term debt. Technically, it has risk, but a fund manager would have to screw up badly to get a money market fund to lose money. OTOH, it will never dramatically increase in value overnight, because that’s not what it does.

There are a lot of options now for self-directed Investing that you can even just try it and see what happens. Sign up for an online brokerage in the EU and see what options they give you. Funds are normally described simply with scores for risk and return. Try to find a low-risk fund that gives better returns than your bank account, and put the minimum in. If it works for you, increase your holdings. Read the fine print to make sure you can get out at anytime with no additional fees.

This type of Investing in short term debt is distinct from gambling. Large companies and governments put out bond offerings as a way to borrow money, and these funds simply invest in things like that. They are seen as very low risk, because these entities normally have other good revenue streams and are unlikely to default. But, it can be very complicated to do effectively, which is why these money market funds exist. The fund managers do all the legwork to find good, low-risk opportunities (and, yes, take a bit off the top for their trouble), but in exchange you get a better deal.

Follow this flow chart: https://ukpersonal.finance/flowchart/

While yes your money is being eaten by inflation when sitting in the bank, if you’re seriously considering purchasing a house that is the correct place to put your money while continuing to build a deposit but you have to commit to an actual plan.

IMO I don’t think you are psychologically prepared to invest (which is probably the biggest factor). Ironically buying a house is also investing but you’ve somehow created a divide in your mind on those two things which makes me think your risk tolerance is low (that’s ok).

Investing is kind of like gambling but the odds of winning go up every year you stay invested, this is wholly not like gambling.

In fact, no one that has invested long term (20+ years) in a broad based low cost index fund has lost money. The catch is you have to weather storms, GFC’s, life’s incidental hiccups and never withdraw the money even if its value has decreased 50% from yesterday.