How much should you save each month
Fund your loans safely with the 50-30-20 rule
Are you already waiting longingly for the next salary in the middle of the month because there is already a yawning emptiness in your current account? If you consistently plan your budget according to the 50-30-20 rule, you will always have an overview. In this way you avoid bottlenecks and cleverly adapt the monthly expenses to your financial possibilities. That's how it works.
50% of the income for basic expenses
50% of your disposable income should be enough to cover current expenses for rent, cars, groceries, electricity, cell phones, etc. Limit your needs if necessary. If more than half of the salary is spent on the fancy car or the great apartment alone, there is certainly not enough money left for other beautiful things in life. In order to keep control of the finances and avoid painful red numbers at the end of the month, it is best to transfer half of your disposable income to your own household account at the beginning of the month.
Tip: Many banks offer the second account free of charge in addition to the current account.
30% for personal needs
Use 30% of your regular income for whatever you feel like doing. Whether vacation, hobbies, shopping, going out, leisure activities: You decide for yourself what you spend the money on - everything that makes you happy is allowed. However, if you have to spend some time soon, e.g. for expensive entertainment electronics, furniture or travel, you should regularly put some money back a few months in advance. This means that the burden in the month of purchase does not remain too high and you are not too financially restricted. A household bill can be helpful here to list the exact income and expenses and to get an overview of how much is left at the end of the month.
Save 20% or use it to pay off debt
Save the remaining 20% of your income. Without reserves, financial emergencies such as an unforeseen car repair, a high back payment to the landlord or sudden unemployment would quickly become a serious financial problem. Only those who save noticeably can afford bigger things in the future, such as their own house, longer professional time off or financial freedom in retirement. A standing order at the beginning of the month on a separate savings or overnight account ensures that you do not cheat when you save.
Here is an example for a concrete illustration: Kathrin J. earns € 2,400 net in her first year as an employed pharmacist. Since she has little experience of her own in financial matters, she simply plans her monthly budget according to the tried and tested 50-30-20 rule:
Because Kathrin actually manages to save 20% of her income every month, she saved € 5,760 at the end of the year without much effort.
The 50-30-20 rule can also be used to repay a loan
A tip: You can of course also use the saved 20% of your income to repay an ongoing loan without having to forego the pleasant things in life. Are you looking for a cheap loan on fair terms? We're here to help. Use our comparison calculator or let us advise you personally!
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