The reasons why families should take care of their finances are obvious. So if you decide to take care of your finances, you’re doing everything right. But how do you start?

The very first step is to take stock of your finances. To do this, ask yourself the following questions:

• What contracts do I have?
• What annuities or building society contracts do I have?
• Do I have any real estate?
• What is my bank balance?
• What do I earn?
• What are my expenses?

This step is hard, but extremely important to know where you stand. You need to keep this in mind and write it down.

So it’s about analyzing your money habits. You can use Excel for this, or just a notebook and pen. In summary, you analyze: What is my net worth? Do I have debts? How much do I earn and where does my money go?

Child benefit, Christmas bonus and vacation pay belong in this analysis, of course, because they are income. In the case of complicated contracts, such as annuities, it makes sense to get help from an independent fee-based advisor. After that, it is important to keep a budget book for 1-3 months to understand where the money really goes.

What account model should families living together have? Our recommendation is the 3-account model. This means that the salaries of both partners end up in one account. From this account, all joint expenses are paid, such as rent, expenses for children, joint vacations, etc. What is left over is divided 50:50 between the partners. This money is at their free disposal.

But what if there is nothing left?

This should be controlled. In the best case one provides that what should remain. Keyword: Saving on the 1st of the month. Because if you wait to see what is left at the end of the month, it is usually nothing. You should think about how much you want to save and for what, so what is the financial goal. That’s why it’s best to set up a standing order on the 1st of the month.

Goals can motivate to save

The average gross income for couples with children in Germany is 6368 euros. But since it is an average income, it means that ⅔ of all people do not have this income, but are below it.

Setting goals and following is very important to success. That is why at Stafford Thorpe we aim to help you organize and devise your goals – and lastly, effectively implement them!