I am not the type to advice women to spend less money on clothes. I think fashion is fun and if you earn a good salary and stay within the confines of your lifestyle budget, why not spend money on clothes? But there are more than just financial implications to spending a lot of money on (new) clothes.
This short article focuses on financing options for real estate. In essence, three types of loans exist: the annuity loan, bullet loan and the building loan.
Concrete Gold sounds wonderful. However, is every real estate worth gold? In times of low interest rates, returns between 4-6% - commonly promised when buying real estate - sound good at first. A real estate purchase should be well considered though - as the return might not always be as high. This article discusses the advantages and disadvantages.
Imagine the following scenario: you are in the South of France on a summer holiday and your car has just been stolen. You are very happy that you have completed the relevant car insurance before. This was only made possible because you took the time to review which insurances matters and which not. Reading this article will help you gain an overview.
Income tax is relevant for everyone, but very few proactively deal with it. Yet, everyone wants to pay as little tax as possible and most importantly, not pay too much tax. According to the Federal Statistical Office, filing one’s income taxes makes economic sense: as an employee you will receive an average of € 935 worth of taxes back.
If you want to turn one of your financial goals into reality, then using the services of a financial advisor might be a good idea. Your financial goal could consist of purchasing a home, investing or planning a trip around the world for which you need money. A financial adviser can assist you by providing giving you with targeted recommendations.
Your credit rating is shown by the Schufa score. This is important if you want to take out a loan, for example, for a larger purchase (home purchase or student loan). Many do not know how much data feeds into the Schufa score. Many also do not know that once a year a free excerpt of the Schufa score is available for review.
Debt is not a pleasant topic. But being well informed about debt helps you navigate this crucial topic if you are affected by it. You may think that debt is not an issue for you. It does not affect you. But one can fall into the debt trap much quicker than expected. Some of the reasons could be failed economic independence, a separation of job loss.
Most money experts recommend: keep it simple. Limit yourself to three (bank) accounts. This article illustrates the advantages of this approach. It explains how to best use the tree account model for your purposes. We also provide you with practical insights into how to best allocate your income to the different buckets. Note that you may want to experiment with this model.
The concept of compound interest is one of the core concepts of personal finance. Be savvy and use its effect. Why? This mechanism helps you to not only save, but increase your capital. The basic idea consists of each year adding the interest you earned on an invested amount of money to the original sum. If you do this for a longer time period (say 10-20 years), it adds up.
Money is still one of the main reasons why couples end a relationship. We do not care enough about it. No matter which account separation you have with your partner, transparency is key. This is what I particularly favour and what I personally try to adhere to in my relationship. Likewise, being fair and discussing how to handle money together is important.
Net worth refers to what you actually own – your wealth once you have deducted everything you owe (another person, the bank, an insurance company …). It is one of the tenants of personal finance management. And your goal is to increase your net worth! We discuss more details.
Life goals do not present an esoteric concept. We at Finelles take them seriously because we take you seriously. You are a member of the Finelles Community. Note: There is a direct correlation between life goals on the one hand and financial goals on the other. Or put differently: life goals translate into financial goals. And once again, managing your money and investing it come into play.
The 50-30-20 budgeting rules is one of our favourite budgeting rules. Why? It is easy to understand and even easier to apply to your personal finances. It helps you allocate portions of your net income to different categories - and ensures you save enough money for your long-term dreams and goals.
One topic we at Finelles are particularly passionate about is the female wealth gap. To be more precise: overcoming the female wealth gap. Why? Well, because in Germany alone, it amounts to 28%. Women have 28% less wealth at their disposal than men. Let’s look at some solutions.
If you do not want to use paper and pen, there are a number of budgeting tools available. Including cool apps. This article presents the features of 10 different apps: 5 are budgeting apps and 5 are banking apps with a budgeting function. Discover which one best suits your needs.
You need an emergency fund - usually, 2-3 months of your net salary. Emergency – doesn’t that sound a bit dramatic? It might – but the very moment that you receive an invoice for an unforeseen car repair or need to travel home because your aging father is in the hospital, you’ll be grateful for it.
If you want to go on a longer trip - a sabbatical of 1-12 months - you need to budget money for this. Our blog entry illustrates the different approaches to planning this well ahead of time. For example, you can use overtime you accumulated, take unpaid leave, or decide to resign and then find a new job upon your return.
Within a time span of three minutes, I forget my goals. No matter if it is sports, diet or even shopping limits, I very quickly get distracted. This is why I love systems that keep me on track towards a goal. I will show you my three favorite saving hacks to give you an idea of automated systems and rules to stay on track.