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7 Tips Finances and Saving in Times of Corona

In addition to health effects, the coronavirus also brings financial challenges. While part of the population can work from home, others are put on short-time work or have to forego their income entirely. We'll give you tips on what cost-saving measures you can take in these cases.

Tips Finances and Saving in Times of Corona

7 Tips Finances and Saving in Times of Corona

Review expenses

First of all, get an overview of your income and expenses. A budget book can help you with this, but also free apps, if you prefer digital. A simple table also provides a quick overview of what you spend your money on each month. So you can find cost guzzlers. Even small positions can make a difference when there are many of them. 
 
Tip: don't forget the annual fees! Perhaps you already use the option of paying the amount once a year with your insurance company or at the gym to save. But it is precisely these amounts that you quickly lose sight of and suddenly there is this large amount in the room that you have not even thought of.

Shop sparingly

When shopping, ask yourself whether it always has to be the branded product or whether the cheap alternative doesn't taste just as good. Bulky purchases also often help to save money. A meal plan for the entire week will help you plan and so it can be enough if you only shop once a week. A shopping list shows you what you really need. If we buy small quantities more often, we tend to buy things that we may not necessarily need, and then of course more often.

Check insurance and investments

There is potential for savings here, for example, with property insurance for couples. If you are both individually insured, you will usually pay more. With so-called couple tariffs, however, you can save up to 150 euros a year on household, personal liability and legal protection insurance. So check your insurance and clarify with your advisor which tariffs they can offer you.
 
When making your investments, you should always stay calm and not rush into anything. How you specifically deal with the situation also depends on your individual situation and your investment goals. It is best to contact your advisor. They take a close look at what could be useful for you personally and together you will find a solution!
 
If you have unit-linked life insurance, you shouldn't be put off. You have surely noticed that there have been price drops on the global stock markets and that there will usually be losses. However, experience has shown that these lead to a recovery phase. Historical capital market developments have shown that stocks, ETFs and funds have come through crises solidly. Furthermore, fluctuations are usually balanced out over the long term by saving in installments through unit-linked annuity or life insurance. 
 
This means that when prices are high, fewer fund shares are bought, while at low prices - as is currently the case - more fund shares are bought. It is therefore not advisable to make spontaneous and rash decisions. As a result, you would not only lose your valuable insurance cover, but you could also suffer tax disadvantages. Let's talk about a meaningful strategy together!

Use special exemption regulations

If you have difficulties paying contributions for your insurance or investment products due to the current situation, please contact your advisor. They will try to find a suitable solution together with you without jeopardizing your insurance cover. For example, there are sometimes special hospitality regulations in various service areas.

Deferred payments for electricity, gas, water, sewage and telecommunications

Since April 1st, you can get a three-month deferred payment for electricity, gas, water, sewage or internet. This is the so-called “temporary right to refuse performance”, which you refer to and which you must inform your contractual partner about. The prerequisite for the claim is, among other things, that you concluded the respective contract before March 8, 2020 and that you have suffered drastic economic losses due to Corona and can therefore no longer adequately support yourself or your family. 
 
The postponement is initially limited to June 30, 2020. If you are still unable to pay your bills, your contractual partner can claim the outstanding money or terminate your contract. In principle, however, conscious consumption also helps when saving. Therefore do not let water unnecessarily e.g. B. walking while brushing your teeth, switch off electrical devices that you do not have in use. The standby mode is a big energy hog in the household. If you do without it, you can save ten to twenty percent of your electricity costs.

Loan deferral

As a consumer, have you bought an ongoing real estate loan or your car using a loan that now has to be paid off? Here, too, the federal government has passed a deferral regulation. For example, if all the requirements are met, consumer loan contracts can be paused for a maximum of three months or deviating regulations for repayment can be made. 
 
This applies to contracts that were concluded before March 15, 2020. The regulation covers the entire repayment service - i.e. interest and repayment - and is valid from April 1, 2020 to June 30, 2020. Here, too, what counts is that the consumer has suffered drastic loss of income due to the COVID-19 pandemic and another The provision of repayment, interest or principal payments would endanger your decent livelihood or that of your family. 
 
In addition, no default interest is incurred during the deferral period and the bank may not terminate the loan due to the failure of payments and make the entire claim due. Remember, however, that this is just a procrastination. Ultimately, the claims accrue and after the deferral, they have to be paid at some point, or an extension of the loan term must be accepted.

You are already saving here

Did you know that the basic tax credit was increased this year? The basic allowance is the part of the income that is left tax-free. No income tax has to be paid on this amount. As of now (as of 05/20) this is 9,408 euros a year for singles (previously 9,168 euros). For married couples this is 18,816 euros (previously 18,336 euros).