How much money do you have at your disposal each month? How are you saving for your retirement and which financial goals have you set yourself? Find out the answers to these questions in the latest instalment of our Finance Check with Lena.
How high is your monthly (net) budget?
I currently receive €1,597 in parental allowance. In addition, we receive €255 in child benefit, which we put aside directly for our son. Before parental leave, my salary was €2,590 net.
Are you renting or buying the place where you live?
I live with my husband and our son in a three-room apartment in a new building in Dresden. The apartment is about 100 m² and has two balconies – plenty of space for us as a young family.
What’s the breakdown of your monthly outgoings in fixed costs and variable costs?
My husband and I divide our rent and utilities costs proportionally based on our net salary. On top of that, there are costs for groceries and ongoing contracts or subscriptions that we share. My share here amounts to €926. We both pay these (proportional) fixed costs into a joint account.
On top of that, I pay around €117 for my cell phone contract, insurance, etc.
Every month, I set aside €60 to pay for things like TV license fees, car tax, and insurance. These are usually only debited once a quarter or once a year. When the time comes, I transfer the corresponding amount from my Pocket to my account.
During parental leave, I adjusted my savings rate, so I now put aside around €200 per month.
The remaining €300 or so is available to me for meeting friends, going to restaurants or cafés, travel tickets, shopping, etc. If there is anything left over at the end of the month, I also transfer the remaining amount to my savings account/Pocket.
When you see the breakdown of your finances, does it surprise you or do you check your spending and income regularly?
No, because I'm the one who keeps track of our finances – I check everything about every six months or when there's a change in salary. Before parental leave, I was able to save quite a bit, which is helping me now.
My husband and I tend to view our income as joint income. I know that my husband treats himself to significantly more, which is why my monthly savings are usually higher than his. This is no longer a problem for me, and I know that we can both support each other at any time.
How do you organize your finances to keep track of everything?
I organize the finances for my husband and me because I'm good with numbers and I love lists.
I have a private account and a joint account with my husband. My income goes into my private account, from where I then transfer a fixed amount to the joint account.
All my savings now go into my savings account. I have several pockets where I have noted as a savings goal how much of this is in the savings account. My “Rainy Day Fund” pocket contains €0, but I can see from the savings goal how much money I have saved in my savings account.
I use an Excel spreadsheet for an overview – we list our joint expenses there so that everyone can see how much each person pays and how much is
How are you making provisions for your old age or saving up for bigger dreams for the future?
We have invested in my company's stock program – that is currently our only investment. We are also planning to open an account for our son. Child benefit and money received for his birth will be paid into this account. It is conceivable that we will inherit something, but we are not planning on it.
Since becoming parents, the topic of provision for the future has become more important. After parental leave, we want to look into this more closely.
What is particularly important to you when it comes to money?
Sometimes I simply forget that I wanted to buy something.
I am very mindful with everything: clothes, media, food, but also money. Quality and regionality are more important to me than price when shopping. I buy via Vinted or sometimes a high-quality item, but everything is reasonable. I've never had an unused gym membership or anything like that. I always ask myself, “Do I really need this?” and I hardly ever buy anything on impulse. Instead, I always think about it several times or look for alternatives. Sometimes I just forget that I wanted to buy something. But I also try to learn from my husband here and there and treat myself to something.
And beyond the personal level: I think there needs to be more transparency when it comes to money. I talk openly about it in my circle of friends and family – but I don't pressure anyone. I support the idea of a universal basic income because many systemically important jobs are not fairly paid.
What did you learn about money in your childhood? We didn't have any financial worries during my childhood, but my parents are very thrifty. For example, even as a child, I had to keep a record of my pocket money: what did I get and what did I spend it on? But I was allowed to do whatever I wanted with it. I continued to keep records during my studies. My parents supported me financially, but in return they always wanted proof of what I had spent the money on. My parents both grew up in the GDR, so I'm pretty sure that's where these values and attitudes come from.
What do you wish you’d known sooner about money and finances?
My parents made everything possible for me. But things like salaries, insurance, or housing costs were never discussed. I only dealt with these issues when they came up in my life. I hope that my child will grow up more open about these topics – with a conscious but relaxed relationship with money.