Living independently

It is important to have an overview of your finances at every stage in life, but especially when you are trying to become financially independent and self-sufficient. This is only possible if you know how much income you have and how much you can spend. That’s why it is important to create a household and question whether all your expenses are truly necessary: So make a note of all your income and all your expenses and set up a budget that you can realistically follow.

When it comes to expenses, you need to set priorities:  Important costs, like rent and groceries, which arise every month, must be covered first. It is often worth comparing prices: Look out for offers and choose cost effective contracts, for example, for electricity, internet, and phone services. Comparison portals or conversations with friends and acquaintances can also be helpful.

Installment purchases and other costly forms of credit or loans, such as overdrafts, can quickly worsen your financial situation: It is easy to lose track of your expenses and often results in high costs.

Saving and investing money are also very important for achieving financial self-sufficiency and independence. Those who save up money are better prepared for the future as savings help us manage unexpected expenses better, for example, for repairs or the purchase of necessary household appliances. Set aside some money each month to be prepared for such unexpected expenses.  Once you have built an emergency reserve, you can also think about investing. Even with small amounts, you can build your wealth over many years and also invest in areas you want to support financially. With insurance, you can protect yourself against financial risks caused by illness, occupational disability or major damage to your home – events that might otherwise overwhelm you financially if they happen.