At the beginning of working life, the salary is still quite meager. Nevertheless, trainees and young professionals should set aside a small amount each month. Already with little money much can be achieved. Ralf Scherfling from the consumer center North Rhine-Westphalia in Dusseldorf are saving tips for young people with a small merit.
Whether hairdresser, gas plumber or banker – trainees usually earn little. And yet the start of your career is a good time to start building your wealth. Because even with small savings rates, you can build a fortune. However, it depends on two things: the right order and enough flexibility.
Always stay flexible
First, career starters should bring their own finances in order, recommends Ralf Scherfling of the consumer center North Rhine-Westphalia in Dusseldorf. “He who gets his first salary should pay all the debts.” Because only then can really be started to build a financial cushion.
Consider risk hedging
“The risk protection is also important,” explains Scherfling. Trainees should check whether they are covered by their parents’ liability insurance during their first training. If not, they should definitely complete their own. Also a disability insurance is recommended. The amounts may be high here. However, this also ensures an important risk. “Good insurances protect you from losing a lot of money later,” explains Niels Nauhauser from the consumer center Baden-Württemberg in Stuttgart.
In search of the right savings product
Once these tasks have been completed, apprentices can then start looking for suitable savings products. The top priority: “career starters should save flexible,” recommends financial expert Nauhauser. Because with young people, the needs sometimes changed quickly. “So one may need money for a first car, another wants to set up their first home.”
“For long-term contracts, young people should be very careful,” says Andreas Beck, director of the Institute for Asset Recovery (IVA) in Munich. Because with pension or life insurance, the acquisition costs are spread over the first few years. The consequence: “In case of an early exit, the insured lose.” Bauspar contracts are only partially suitable for young professionals because the return is usually low.
First choice for saving is therefore initially a good interest-bearing savings account. “You can build up a liquidity reserve for that first,” explains Ralf Scherfling. Two or even three net salaries should be parked here by Auzubis. Because: “Unforeseen expenses always exist.”
Savings Account offers benefits for job starters
A savings account has several advantages: deposits and withdrawals are possible at any time. In addition, such an account is inexpensive, because fees are usually not collected. If you set up a savings plan with your bank, you can even regularly transfer a small amount from your giro account to the savings account.
In addition, trainees should inquire with their boss, whether the operation promotes austerity measures. “If there is an employer-funded company pension plan, you should definitely complete it,” recommends Scherfling. As a rule, the contributions are deducted directly from the salary.
Many companies offer asset-based services
Many companies also offer asset-based services (VL). Employers pay their employees a fixed amount, which varies according to the industry. For example, civil servants receive € 6.65 a month, employees of the iron and steel industry and the motor industry € 26.59, and bankers € 40. “You should not underestimate that,” says Scherfling. “Over the years, something can accumulate quite a bit.”
With low income – like that of trainees – there is also something added by the state. Employees whose taxable annual income is less than 20,000 euros (single) or 40,000 euros (married) are entitled to employee savings.
Do not set saving rates too high
If you have already saved a certain amount, you can also invest it in fixed deposits. Although the money is invested for a fixed period of time, the interest is often higher than for a money market account. “Even an equity fund could offer itself,” says Andreas Beck. “Some fund companies offer savings plans from just € 25 per month.” Anyone who bets on exchange-traded funds, so-called ETFs, also saves fees.
However, trainees should not be too ambitious when it comes to saving money: “You should not set the saving rates too high,” says consumer advocate Scherfling. “After all, you still want to live.”