From the author:
Why the conscious handling of money is important
The conscious and correct handling of money is extremely important. The effect is not high enough, because with the necessary knowledge and valuable tips endowed at the end of the month finally something left over and can even be saved for larger expenses, the age and the development of a (small) assets.
Get a detailed overview of your financial situation. Be aware of how much you have and take regularly. Then list what you spend your money on and where you can save money.
Only in this way are you able to assess your situation realistically. At the same time,
- Are really all expenses necessary and important?
- Can you optimize and save in some places?
- What can you do without? It is not about absolute renunciation, on the contrary - joy of life and enjoyment are important aspects for us humans, they get our motivation and satisfaction.
Then make an inventory of your financings. The inventory includes:
Unfortunately, the car is often better insured than the most valuable asset - the labor force and thus the income. A closer look at the precaution is therefore important for stocktaking. You can also write down the method of payment (often you can save money here) as well as the conditions at different stages of the damage, both for yourself and your family.
- Health insurance: health insurance (possibly also for the family), long-term care insurance, accident insurance, disability insurance (secures your most important source of income - yourself)
- Old-age provision: statutory pension claims - for you and your family
- Property and asset insurance: private liability insurance, household and possibly building insurance, legal protection, motor insurance, travel insurance (with foreign-disease protection, accident protection and many more)
Even if you do not have any significant capital investments, it is worth taking a look to see what possibilities there are and which are suitable for you of the investment type
- Money and assets
- Capital formation with the state (ie tax-subsidized or subsidized models such as the home savings or equity fund, who has more than 17.900 euros to tax every year, can also capitalize on the company pension scheme)
- Shares and equity funds
- Loans and finance: from mortgage to the property to (consumer) credit
4. Other commitments:
- such as memberships, subscriptions, hobbies, as well as alimony or guarantees
After this comprehensive overview of the long-term hedge, the aim is now to look closely at the income situation and to compare the monthly expenses:
- from self-employed and / or freelance as well as commercial work
- from letting and leasing
- Budget: Living with energy (electricity, gas, water), communication, television etc.
- Nutrition: food and drink as well as household management
- Clothing: for yourself and other family members
- Insurance: Remember, for example, illness, accident and disability, life and pension insurance, liability, household items, legal protection, travel
- Debt redemption and obligations: for mortgages, acquisition loans, mortgages, small loans, subscriptions
- Other expenses: for child care, travel allowances and motor vehicles, magazines and newspapers (including digital), fees and charges, pocket money, other
- Reserves for holidays, clothing, wishes, fulfillment of your (life) plan, iron reserve
You've listed your income and expenses, and you'll know if there is or should remain at the end of the month - if it does not, it makes sense to think about what you spend the money on. However, there may be an undercover on the paper as well, then it is necessary to consider expenditure.
Now you already know whether retirement benefits are sufficient and whether the standard of living is hedged in the event of a case. Is the family adequately hedged and the assets as well?
How to reach your dreams
With this knowledge, you can tackle more fundamental issues that go far beyond the usual understanding of financial planning - namely, what your goals and wishes are: is it the dream of your own home or a beach bar in the south? Is it important to you to secure the future of the children and leave a legacy? Although these goals may be a long way off or seem unattainable at first glance, they need not be. And the step to meet those plans is to take stock, because this is where rethinking begins.
In three further contributions, I will give you the basics "About handling money". It deals with the following topics: Start with a detailed analysis of your income and expenses, draw the necessary conclusions and save an iron reserve, and also deal with the basics of the capital market. So armed you can start.
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