Unpredictable expenses quickly add up. Experts recommend building up reserves. With these tips, it’s easy to do.
That smart phone strikes, the Washing machine needs to be repaired and the car won’t start either: Unpredictable things like this happen quickly and can cost money. In view of the high inflation, you should be prepared for emergencies of this kind; the proverbial emergency fund is advisable.
But how big should it be? reserve that gives you a feeling of security, and what tips do professionals have for putting them on. Our overview shows how best to protect yourself from financial crises.
Tip number 1: Adequate reserves
The nest egg should not be too small. “Three to four is ideal for this net monthly income“, says the financial expert Uwe Zimmer from Cologne German press agency. The reserve for families with children should be even larger. Experts recommend six net monthly salaries here.
And of course it always depends on the circumstances: Anyone who lives in a condominium that could require expensive repairs should put more money aside than someone who lives in a small one rental apartment lives.
Also read: Pension: Why the fear of poverty in old age is growing now
Tip number 2: control expenses
If you want to save, you first have to get an overview of your monthly expenses. Special app help for the smartphone, in which the expenses are meticulously entered – honesty is of course mandatory here.
If you can keep track of your expenses, you could then 50/30/20 rule apply: This savings strategy plans to factor in 50 percent for fixed expenses like rent and grocery shopping, set aside 30 percent for leisure activities like dining out, and 20 percent for savings.
Also read: Inflation in Germany: what does the price increase mean?
Tip number 3: call money account for the nest egg
Of the Consumer Center Federal Association (vzbv) recommends an extra account for the reserve: Because the money is available there at any time and can, for example, be spontaneously transferred to the checking account be transferred – in contrast to a savings account, for example.
That call money account According to the consumer center, there is another advantage: the statutory deposit insurance ensures that 100,000 euros per bank and customer are protected in the event of a bank failure. (fmg/dpa)
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