Follow these steps to financial wellbeing:
Get your bank statements from the past year and either download them from your bank account directly into Excel, or use an app to cluster your expenses. (Numbrs
is an app from in Switzerland, it connects your bank accounts, and doesn't sell your data)
Analyse your spendings from before Corona, and during Corona, what were the major things that changed? Read on an experts opinion
on why you should still by that latte.
Set a goal of how much you want to put aside a month
If you have dept, pay it off.
Open a depot with e.g. Comdirect.de
, their transaction prices are quite low, compared to the competition.
Start sending your monthly savings to your depot. This makes sense, because your depot is free (e.g. for the first 3 years and then 4Euros/year) and your money is more accessible than a regular savings account. Also, it encourages you to start investing, slowly but surely.
If you need an emergency fund (because you don't live in Germany with a stable social system), set a savings goal, before you use the money to start investing. Read this article
by former Wallstreet Ceo Sallie Krawcheck Watch Mrs. Dow Jones video
what to do before investing.
Start learning about the stock market. You don't have to start immediately, but start by watching Warren Buffets 7
investing tips. There is a whole book you can read called the Intelligent Investor by Benjamin Graham
, he was Warren Buffets Professor. The audio book is very long and very dry, but very interesting.
Remember that the stock market is not equal to the real economy. Watch this video
for more information, or read about how to evaluate the current covid-19 crisis
Now we told you what not to do, but here is what you CAN do:
- Invest consistently
read about how to do that
- Invest long term, grow with the market, don't try to outperform it
- Invest in e.g. ETFs
, or companies in an industry that you understand. Watch this 20 min video tutorial
with a free spreadsheet on how to analyse a stock.
- For our German natives these two blogs by Fortunalista
or Madame Moneypenny
give good insights.
Your money is a piece of your independence, take care of it, don't just wish upon a star.