The consumer crisis continues, and many households are feeling the strain every day. It is now even more important to have your personal finances under control and to know what is important.
Everyday life is becoming more expensive and inflation figures are still high. As an antidote, central banks are gradually raising interest rates. Although this is slowly curbing inflation, it is also an obstacle to economic development. In addition to the price crisis, the energy crisis also continues to concern German households. Although prices have fallen again this year, experts believe they will not return to the level before the war in Ukraine. In addition, the energy price brakes will expire next year. The consumer advice centers are calling for this to be extended.
Consumers see the consequences of all this in their wallets every day. The consumer advice centers are therefore talking about an ongoing consumer crisis, because many different factors are coming together and driving up prices. This makes it all the more important that consumers have their personal finances under control and can make good financial decisions.
Keep track
If you want to plan your finances, you first have to get an overview of everything revenue and expenditure – preferably in writing and over a longer period of several months. This can be done with pen and paper, on the PC in Excel tables or other programs or using apps.
To the revenue This can include income from employment, student loans, scholarships, social benefits, maintenance, child benefit or pension payments.
Both expenditure It may be worth distinguishing between different types of expenses and categories. Fixed expenses are those that occur regularly and in the same amount. These are often contractually agreed and cannot be changed in the short term. This includes rent including additional costs, energy costs, telephone, internet and cell phone costs, insurance, memberships, subscriptions, loan installments and more. Variable expenses may also occur regularly, but the amount of expenses can vary: costs for food, hygiene and cosmetics, clothing, restaurant visits, gifts, and leisure expenses are included.
In any case, it is important Balance sheet to pulli.e. adding up the collected numbers. For most consumers, a monthly balance sheet certainly makes sense, after all, most payment transactions take place monthly – such as rent or salary. It can also be worthwhile to look at the entire year, as this shows the income and expenses that occur regularly, but not monthly, and have not been mathematically distributed over the entire year, such as the broadcasting fee or annual car insurance.
Set goals
How detailed consumers record and balance their expenses also depends on their status Goal away. Does anyone just want to know if the ratio of Balanced income to expenses A simple statement is sufficient, at the end of which there is a total for income and one for expenses. Who Scope for savings If you are looking for something or want to know your expenses better and plan differently in the future, you should divide your expenses into categories (such as food, clothing, leisure time) and balance them. Anyone who does this will experience some surprises: for example, because a lot of money goes to food outside the home every month, because the car costs more than expected or the total expenses for streaming services are unexpectedly high. Some fixed expenses may be waivable or even duplicated: for example, streaming subscriptions or memberships that households may not even use.
Plan the budget
The next step is to plan the existing budget. Consumers who still have a budget left after all expenses have been deducted should reserve build up. This so-called emergency fund should be in the amount of 2 to 3 net monthly salaries in a separate account and should be available at short notice at any time. If the washing machine breaks down, the electricity bill is higher than expected, or some unexpected expense arises, consumers can use the money from the reserve account and then save it again.
Consumers can also decide which ones at the beginning of the month Amounts for which Expense category be available. For a better overview, the specified amounts can also be kept in cash divided into different envelopes.
But be careful with excessive cash reserves: larger sums should always be kept in a bank account – and not in cash at home. Because if something happens, cash is not insured. However, the so-called applies to balances in accounts Deposit insurance the federal government. This means that every saver's money is protected by the German state in a bank up to an amount of 100,000 euros.
Plan ahead and avoid consumer debt
Consumers can plan foreseeable expenses in the long term. For example, if you own a car and know that it will have to be replaced in a few years, you can save a sum for it every month. In this way, consumers can avoid a loan and thus also the loan interest.
If the budget is not sufficient for a purchase, you can
Consumers check whether the purchase is necessary at the current time. If the answer to this question is “yes”, a purchase can also be financed from the reserves saved.
Consumers should avoid financing pure consumer goods with loans. These include, for example, a coffee machine or a vacation. The value of these things lasts much longer than consumers have to pay back the loan. This becomes a problem when you can no longer repay the loan installments and the product financed with the loan no longer has a resale value. This is usually the case with consumer goods.
If a credit-financed purchase does arise, consumers can take out an installment or consumer loan – and not use the overdraft facility in the current account. Overdrafts only make sense if it is clear that they can be paid off from your income after a short period of time.
When it comes to installment loans, it's worth taking a closer look: What is the effective annual interest rate on a loan? Is there a cheaper offer? Comparison portals can help here. Consumers should definitely avoid dubious offers, for example from so-called credit brokers. These often promise quick lending through advertising – without Schufa. This is already a clear warning. No bank will grant a loan without the consumer’s Schufa information. From this, the bank can draw conclusions about the customers’ creditworthiness. This is also in the interest of the borrowers, because anyone who cannot pay off a loan will quickly end up in over-indebtedness.
When the money isn't enough
If expenses are regularly or once higher than income, a financial bottleneck occurs. This can happen quickly in the current situation if, for example, a high energy bill hits the house.
If you don't have enough money, it may be worth re-examining your budget for opportunities for savings: what regular expenses might be dispensablelike cell phone insurance? They are all Exemptions redeemed, for example from the radio license fee? Can I in cheaper Change tariffs, for example with the telephone provider?
Absolute priority have the following expenses even in financially difficult times:
- Rent
- Energy costs
- Nutrition
These costs should always be covered first, even if, for example, a debt collection agency makes demands. Here, too, you should not turn to dubious credit providers in an emergency. Compensating for a financial bottleneck with a loan leads to over-indebtedness. Consumers who cannot pay bills can contact consumer advice centers and debt advice centers. You can usually agree on payment in installments with the energy provider. There are also hardship funds and offers of help for emergencies.
