I always find it a shame how some people talk down HUNDREDS of thousands of euros.
That's a damn big chunk of money that not many people outside our bubble save up in their lifetime.
Congratulations to you, let's get the snowball rolling.
That's a damn big chunk of money that not many people outside our bubble save up in their lifetime.
Congratulations to you, let's get the snowball rolling.
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@Der_Dividenden_Monteur you're right, sometimes you just have to zoom out once to realize that everyone has different start levels and how much this sum already is. Thank you for your congratulations! 🎊
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@Der_Dividenden_Monteur True words. Reaching 100k under your own steam - at a comparatively young age - is quite a feat.
When it comes to the pension gap, for example, you have already almost closed it (if you simply leave the money in your deposit account until 65).
Particularly in Germany, where salaries diverge much less than in the USA, for example, it is not easy to reach this amount early on despite a good education.
When it comes to the pension gap, for example, you have already almost closed it (if you simply leave the money in your deposit account until 65).
Particularly in Germany, where salaries diverge much less than in the USA, for example, it is not easy to reach this amount early on despite a good education.
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@Der_Dividenden_Monteur true... absolutely true. ☝️ pause for a moment and let it sink in
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@KevinE Well, you could also turn it around and say it's rather sad that so many Germans can't put any money aside. Apart from that, the 100k can be almost all of his assets. My aunt also thinks she is poor but forgets that she owns a Mercedes Benz and a property that is probably worth 2 million these days. It's probably no different for other people. Often no value is attributed to material objects
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@topicswithhead That's basically true. But it always depends on what the assets bring you.
For me, cash flow is crucial. Whether I drive a Porsche, Benz or Dacia makes no difference. Sure, I can still sell them in an emergency.
But imagine a 3 room apartment (80m2, built in 1970) owned by an old couple, the Huber family. Both 70 years old, living in Munich, good location. When they bought the apartment in 1985, it was still affordable for both of them, although the wife took a long career break to bring up the children (1 child).
He doesn't have a high pension either - his body didn't last long enough and he had to retire at 60. As the apartment building in which they live is now over 50 years old, there is a lot of renovation work to be done, including the roof.
The Huber family has made many friends and acquaintances in their neighborhood over the past decades. They know each other and support each other.
However, money has become increasingly scarce since coronavirus. High inflation means that their pension is no longer enough.
The apartment is worth €600,000. They could get this money tax-free as they have lived in the property forever.
But they also know that an apartment in the same area (near their friends, etc.) is expensive. They quickly pay €1,600 cold for a comparable quality of living, and rent increases are to be expected. With rental costs of around €20,000 per year and any necessary care costs in the future.... To be continued.
Don't get me wrong, this fictitious Mr. and Mrs. Huber are of course not doing badly. But just because they have 600k in assets (and an unquantified value in pension entitlements) doesn't mean they can live like a pig in a poke.
If someone in Schwerin has an apartment of the same size, valued at €200k, and a €400k deposit, they may be able to afford considerably more.
For me, cash flow is crucial. Whether I drive a Porsche, Benz or Dacia makes no difference. Sure, I can still sell them in an emergency.
But imagine a 3 room apartment (80m2, built in 1970) owned by an old couple, the Huber family. Both 70 years old, living in Munich, good location. When they bought the apartment in 1985, it was still affordable for both of them, although the wife took a long career break to bring up the children (1 child).
He doesn't have a high pension either - his body didn't last long enough and he had to retire at 60. As the apartment building in which they live is now over 50 years old, there is a lot of renovation work to be done, including the roof.
The Huber family has made many friends and acquaintances in their neighborhood over the past decades. They know each other and support each other.
However, money has become increasingly scarce since coronavirus. High inflation means that their pension is no longer enough.
The apartment is worth €600,000. They could get this money tax-free as they have lived in the property forever.
But they also know that an apartment in the same area (near their friends, etc.) is expensive. They quickly pay €1,600 cold for a comparable quality of living, and rent increases are to be expected. With rental costs of around €20,000 per year and any necessary care costs in the future.... To be continued.
Don't get me wrong, this fictitious Mr. and Mrs. Huber are of course not doing badly. But just because they have 600k in assets (and an unquantified value in pension entitlements) doesn't mean they can live like a pig in a poke.
If someone in Schwerin has an apartment of the same size, valued at €200k, and a €400k deposit, they may be able to afford considerably more.
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