Start with what actually matters

Record your regular net income. One-off payments and uncertain additional income should not, of course, finance ongoing obligations. If your income fluctuates, careful planning based on several months helps. Additionally, check whether particularly weak months can be tolerated.

View bank statements, card statements and cash payments. Two or three months give a first impression; A longer review makes sense for annual contributions and seasonal costs.

Four pots instead of one long list

• Firm commitments: such as rent, electricity payments, insurance or loan installments.
• Variable expenses: Food, mobility, leisure and other variable costs.
• Foreseeable special editions: Annual contributions, maintenance or planned purchases. Divide expected annual costs by twelve.
• Reserves and goals: a consciously earmarked amount for your buffer or a specific project.

An annual bill of over 600 euros mathematically means 50 euros per month. If the bill is due in three months and nothing has been set aside yet, these 50 euros are not enough at first: then 200 euros per month would be necessary for this appointment.

Your monthly leeway

Enter monthly amounts in euros. The default numbers are just an example.

Net income (€) Fixed commitments (€) Variable expenses (€) Reserves & planned expenses (€)

Remaining monthly amount

€350.00

Calculation: Income minus the three expense items. Record reserves for annual costs only once here. The billing takes place locally in your browser; Entries will not be transmitted to us or stored.

The result is a starting point

A positive balance doesn't automatically mean money to spend: check first that all costs are included. A negative amount shows a gap in the plan. Then distinguish between one-off stresses and a permanent imbalance. If you have payment difficulties, a recognized debt advice center can provide support.

After a month, compare plan and reality. Adjust realistic amounts instead of continually falling short of a tight budget. Percentage rules can provide guidance, but they do not replace a look at housing costs, budget and obligations.

An average is not your shopping basket

Inflation refers to a broad increase in price levels over a period of time. It is measured using a weighted basket of goods and services. Individual prices can fall while the average increases.

Your personal everyday life may look different: Anyone who spends a large part of their income on energy, rent or food will feel price changes in these areas more strongly. An official average is therefore a measure of overall development, but not an exact description of each household.

Falling inflation does not mean falling prices

If the inflation rate falls, prices rise more slowly on average. The previous price level will not automatically be reached again. A sustained, broad decline in the price level, on the other hand, is referred to as deflation. This distinction helps to correctly read headlines about “easing prices”.

Nominal interest rate and real change

The nominal interest describes the interest paid on a credit balance. The price development is also crucial for its purchasing power. The real change can be approximately expressed as interest rate minus inflation. More precisely, the calculation is: (1 + interest rate) ÷ (1 + inflation rate) − 1.

Pure calculation example, no current market data and no forecast. Taxes and costs are not taken into account.

Why interest rates are in the news

Central banks influence financing conditions with their interest rate policy. Higher interest rates can make loans more expensive and dampen demand. The effect does not occur immediately and depends on other factors. Energy prices, delivery conditions and wage developments can also influence price developments.

This does not result in a reliable market forecast for your own planning. It is more helpful to regularly check spending approaches and to consider the duration, availability, costs and purchasing power of savings offers.

Planned costs are not an emergency

An annual bill is predictable, even if it only comes once a year. Money saved for this should be put into a separate planning pot. An emergency buffer, on the other hand, is intended for necessary, unexpected expenses or temporary loss of income. The separation prevents a planned purchase from unnoticed using up the entire reserve.

Multiple accounts are not absolutely necessary. A comprehensible list or a division in the budget book can be sufficient. It is crucial that the same euro is not planned for multiple purposes at the same time.

How big should a buffer be?

There is no generally valid sum. Frequently mentioned monthly salary rules are merely rules of thumb. What is more meaningful is your necessary monthly expenses and the question of what risks your household has to absorb itself.

• Income: How reliable is it and is there other income in the budget?
• Commitments: What expenses continue even if there is a loss of income?
• Everyday: For example, do you need your own car?
• Available coverage: Which benefits or insurance policies actually apply, when and under what conditions?

Derive an individual target amount from this. Small regular amounts can be a start. In the case of expensive debts, it must also be checked how the accumulation of reserves and repayment fit together; a savings plan alone does not solve this consideration.

Bringing purpose and time horizon together

Investments that fluctuate in value may be valued lower just when you need money. A long holding period does not eliminate the risk of loss. Conversely, readily available credit can lose purchasing power in the event of inflation. It is therefore not about a single “best” solution, but rather about suitable properties for different tasks.

Check before making a decision

Read the conditions for availability, notice periods, costs and risks. For bank deposits, the relevant security system and the applicable limits are also relevant. When it comes to securities, deposit insurance does not protect against price losses. Check provider information and do not rely on an advertising security signal.

Consumer information and information on financial offers can be found at Federal Financial Supervisory Authority. For information on investor protection at the European level, the European Securities and Markets Authority ESMA another starting point.