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 Sophie.
How high is your monthly (net) budget?
I have 2,125 euros net from my part-time job. I also have around 100 euros a month from selling my own ceramics. That's not really an extra income, but at least I can finance my creative hobby to a certain extent - and it's not exactly cheap, but it's absolutely priceless to me.
Are you renting or buying the place where you live?
I live alone in a 1-room attic flat with 40 square metres in the western part of Leipzig. The flat is nice and bright, newly renovated and has a small terrace. I'm often travelling and don't need a lot of space - so it's perfect for me in the current situation. Nevertheless, I sometimes worry about what it will be like once I need a bigger place. Leipzig's housing market has also changed considerably in recent years and it has become much more difficult to find something affordable.
What’s the breakdown of your monthly outgoings in fixed costs and variable costs?
My fixed costs add up to €1,188. This includes €565 for rent and €200 for food. I also add my rent in the pottery studio at €135, mobility at €123 and other costs such as electricity, gym, insurance and contracts at €165.
In terms of variable costs, I incur around €435 per month - the biggest items here are €160 for restaurant visits and €65 for pottery materials. I also regularly spend money on shopping, gifts and analogue photography.
I also invest €300 in ETF savings plans every month.
If there's anything left by the end of the month, it goes straight into my travel fund. Two or three times a year I go away with friends - a change of scenery, nature, laughing together. These breaks mean a lot to me.
When you see the breakdown of your finances, does it surprise you or do you check your spending and income regularly?
I regularly check my account - because I have to. Nevertheless, I often end up in the red and then ask myself: where has all the money gone? Especially when I started making pottery, my hobby had quite an impact on my budget. Before I sold my ceramics, I spent around 200 euros a month on materials and studio time. But that's exactly why I look at it - and do so regularly.
How do you organize your finances to keep track of everything?
I used to love using the pockets in the Tomorrow app - for travelling, small wishes or emergencies. Since I started investing 300 euros in ETFs every month, there's nothing left for that. I only use my Tomorrow account and additionally have my savings account with Trade Republic. That's my entire structure - simple, but it works (to a certain extent).
How are you making provisions for your old age or saving up for bigger dreams for the future?
My retirement provision currently consists of two ETF savings plans. I'm planning for myself alone - I don't want any children and I'm not expecting a large inheritance. My father has property, but there are four of us children.
What is particularly important to you when it comes to money?
Eating cake with friends is more important to me than my career.
So for me, money doesn't mean security in the sense of having a lot, but rather: having enough for a good life.
I don't dream of becoming rich. It's important to me that I can live well - now and later. For me, that means going out for cake regularly, going on holiday with friends and being able to replace my old Vespa at some point.
And yes, there's also 10,000 euros in BAföG debt. That will be due soon. It's not easy to start your career with that.
What do you wish you’d known sooner about money and finances?
Several things. How to save money in a clever way. How to set priorities. And that it's okay to make mistakes - as long as you talk about them.
I once accumulated 1,000 euros in Klarna debt - and didn't know how to get out of it. There was no room to talk about money - neither in my family nor in my environment. My father, for example, was always very secretive when it came to money. What exactly does he earn or own? No clue.
Looking back, I realise that I never really learned how to handle money well. And transparency wasn't part of my reality. That's a shame - but I'm working on it.