The car inspection is more expensive than expected, the washing machine gives up its ghost or another emergency situation is pending: It’s good that you have saved money for such moments. You did, right?
Savings are made for retirement, for the children’s school trip, for a new car or for vacation: putting money on the high edge is not easy. Either there is simply not enough money to save it. Or saving in itself is a burden. Why put money in the piggy bank when you can spend it today.
In the corona crisis, Germans saved more than ever before. Private wealth has risen to an unbelievable 7.1 trillion euros, an all-time high. According to the, Germans saved around 393 billion euros in the 2020 pandemic. Calculations show that for every 100 euros of disposable income, 17 euros are set aside.
The reason for the increased savings is not forward planning, but rather uncertainty. Short-time work, loss of income or even fear of loss at work: All these worries made the piggy bank swell.
Nest egg: this is how much you should save
Actually, provision should only be made for emergencies. But how much money should you have for broken household appliances or car repairs?
How much money should be saved as a nest egg is not easy to answer. Even professionals give different information. Some experts recommend a single household to save at least three, better six, available monthly net salaries. For full-time working couples, three months’ income should be saved. Other bankers set a fixed sum, usually 10,000 euros, to quantify the amount of the nest egg.
It is important to know in advance what function the nest egg should have. If the piggy bank is looted regularly, for vacations or a new laptop, it is not a real emergency fund that is only intended to help in times of crisis. The different functions of savings should be separated. The best thing to do is to park the nest egg in an extra account, preferably not at the usual bank, so that you don’t even have the money within reach. In order to have an idea of how many euros should be saved, it is helpful to have a budget book that shows exactly what money is being spent on and how much is coming in each month. Because: A not inconsiderable part of the net income is spent on odds and ends.
Source From: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
