Lately, this is a question I've been asking myself, and I don't know which would be best, both on short term and long term.
Let's suppose I have around 20,000 to 25,000€ in my savings account (which give some interests over the year). So far I'm still a young worker, and I'm able to save something like 500 to 1,000€ per month.
Now, let's suppose I manage to find an asset I want to buy (an extremely cheap home for example), and its value is around 20,000€ (so I can definitely afford it).
If I want to buy it, I've got two choices:
I could meet my bank and loan some money, this way I could buy it and still have some spare in my savings, just in case. However, loans are more expensive on the long term.
Or I could just withdraw all my savings to buy it, this way I won't have to pay back a loan. However, I won't have anything left for the first few months, which sounds dangerous.