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.
Checklist finance in 7 steps
Then first take stock of your finances. 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 obligations
- - 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 have listed your income and expenses and now know whether something should or should remain at the end of the month - if not, do it Sense to think about what you're spending the money on. However, there may already be a shortage on paper, so it is necessary to rethink spending.
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?
5 Tips: How to create the right overview
Now it is a matter of building up reserves. Because these help, in addition to a sensible overview, to secure your own income permanently and often even increase it. With the right overview, you know which expenses you can save.
Now you only have to implement this saving. You now know where the money runs through your fingers and you have a clear view of what you are saving for. So how much should you put aside? With this comprehensive overview of long-term coverage, it is now a matter of carefully considering the income situation and comparing it with the monthly expenses:
- The rule of thumb is to put five to ten percent of your earnings aside every month - ideally immediately and almost automatically by standing order on a separate account at another bank. So you gradually save an iron reserve, which should be three times the monthly expenses. As soon as the iron reserve, which serves as a reserve for the unforeseen, you can start with the actual accumulation of wealth.
- Invest in yourself! At the same time, I would like to encourage you to invest in your most important pound: in yourself. With targeted further training, you increase your market value and often your income as well as your own satisfaction. In the long term, education is the best and safest way to improve the quality of life and its earnings. Seize the chance of further training. General education is important, but it does not help you professionally. You have to set a goal that will make you stand out from the wide range.
- Making achievements visible: It is equally important to make your achievements visible - look to the stars who do a great deal to land in the media. Now you do not have to become your own PR agent, but the principle is similar: Do something to stand out. Do more than you expect. And put your ideas in writing and explain the benefits and benefits of your proposal. So prepared, you also score in salary negotiations.
- Take a closer look at banks: you are already working intensively on your finances. Therefore, you should now also have a comparative view of who you trust your money: Take a closer look at the bank. In times of penalties it is worth comparing - what is the actual cost of the account, is there a small interest rate under certain conditions?
- Never be the naive customer! Experience has shown that a salary account at the bank around the corner for current expenses in combination with an account for saving at an online bank is recommended. This has psychological benefits: The money is felt out of reach, you do not get it so fast. At the same time, this procedure protects against desirability of the house bank. I strongly recommend that you never confront your bank adviser as a naive customer because financial products are traded like commodities today, and that is exactly what the bank adviser has to put down with pressure from the boss.
Outlook: 25 tips for investment forms
In the further course of our series in the next two days is about investment forms. You can set your short-term capital in day and time deposits, for example. Sure, at the moment, there is no sufficient interest rate, and even interest rates are already required by large investors. An expansion can not be ruled out. This will not always remain so. When savings are declining, long-term investment will suffer. I'd advise you to go abroad.
Real estate, apart from home-grown, precious metals and other things, should not be considered until you have accumulated enough capital for your standard of living. How much that should be, determine yourself.
I will make two proposals for your long-term investment. Cobblers and shares, where I favor stocks. In the long term, they are proposing all other investments. And they have yet another advantage: after the Second World War, the stock owners were the best in currency reform. All other investments are then ranked. For me, the dividend always stood in the foreground.
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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