Personal Finance in Germany - PerFinExplains (2024)

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Personal Finance in Germany In A Nutshell

Personal finance in Germany includes several key elements. In addition to income, expenses, savings, investments, and debts, one must also understand taxes and insurance and be aware of the various options for financial planning and retirement planning. To successfully manage personal finances in Germany, a clear understanding of the country’s financial system and regulations is essential.

An important aspect of personal finance in Germany is understanding the social security system. Social security in Germany includes health insurance, unemployment insurance, pension insurance, long-term care insurance, and accident insurance. All employees in Germany are required to pay contributions to the social security system, with employers also contributing on their behalf. The amount of contributions depends on the employee’s income and the type of insurance in question. In return, workers are entitled to benefits such as health insurance coverage, unemployment benefits, and retirement pensions.

Another important aspect of personal finance in Germany is banking. There are different types of banks in Germany, including retail banks, savings banks, and credit unions. These banks offer a range of services, including current and savings accounts, loans, mortgages, and investment products. Germans are known as cautious savers, and many people choose to save their money in low-risk savings accounts or investment products such as bonds.

When it comes to loans, Germans tend to be cautious as well and prefer to avoid debt. However, loans can be useful to finance larger purchases such as real estate. Personal loans and credit cards are also available, but interest rates are usually higher than those for secured loans. Before taking out a loan, you should check the terms carefully and make sure that repayments can be made on time to avoid additional fees and charges.

In summary, personal finance in Germany includes managing social security contributions, banking services, loans, investments, and taxes. Knowledge of the social security system is important for accessing benefits such as health insurance and retirement pensions. Banking services such as savings accounts and investment products can help Germans save for the future, while loans can be useful to finance major purchases or deal with unexpected expenses.

PerFinEx can help you with your personal finances in Germany. We are here to increase your knowledge and set up a good plan for your future. With us, you will always stay up to date and be well-prepared for everything concerning your personal finances in Germany.

Our Latest PerFinExPlain Videos

In our YouTube playlist about personal finance in Germany, we go into everything important about finance. Here we give you important tips to improve your financial situation and also tips on how to improve your personal finances in Germany.

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Our Latest PerFinExPlain Blog Posts

In our blog, we report on everything there is to know about personal finance in Germany. Among other things, we inform you about current events, grievances, misconceptions, mistakes, and changes that affect your personal finances in Germany.

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You want to move to Germany? Then you need to do all 9 steps on our list "Moving to Germany". We have compiled this list of all the really necessary points that you need to do before and after your arrival in Germany

Our Latest PerFinExPlain Blog Posts

In our blog, we report on everything there is to know about personal finance in Germany. Among other things, we inform you about current events, grievances, misconceptions, mistakes, and changes that affect your personal finances in Germany.

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Calculate everything related to personal finance in Germany

With our calculators, you can conveniently calculate everything you need to know about personal finance in Germany. Whether you need a bank account or a consumer loan, simply use our calculators and open the best possible account for you.

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Find the best bank account in Germany with the lowest (hidden) fees.

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Find the best business bank account in Germany with the lowest (hidden) fees.

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Find the best credit card in Germany with the lowest (hidden) fees & most benefits.

Best consumer Loan in Germany

Find the best consumer loan in Germany with the lowest interest rate.

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Find the best car loan in Germany with the lowest interest rate.

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Find the best student credit card in Germany with the lowest (hidden) fees.

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Find the best rent deposit account in Germany with the lowest (hidden) fees.

Calculate everything related to personal finance in Germany

With our calculators, you can conveniently calculate everything you need to know about personal finance in Germany. Whether you need a bank account or a consumer loan, simply use our calculators and open the best possible account for you.

Best Bank account in germany

Find the best bank account in Germany with the lowest (hidden) fees.

Best business bank account in germany

Find the best business bank account in Germany with the lowest (hidden) fees.

best credit card in germany

Find the best credit card in Germany with the lowest (hidden) fees & most benefits.

Best car Loan in Germany

Find the best car loan in Germany with the lowest interest rate.

Best payday Loan in Germany

Find the best payday loan in Germany with the lowest interest rate.

best student bank account in germany

Find the best student bank account in Germany with the lowest (hidden) fees.

best student credit card in germany

Find the best student credit card in Germany with the lowest (hidden) fees.

Best consumer Loan in Germany

Find the best consumer loan in Germany with the lowest interest rate.

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Social security in Germany

Social security in Germany is an essential pillar of the country’s welfare system and is designed to provide a comprehensive safety net for millions of citizens. It includes a wide range of programs covering various aspects of social welfare, such as health insurance, pensions, unemployment insurance, and more.

These programs are critical to the well-being of individuals and families, ensuring their financial stability and protecting them from unforeseen circumstances. However, it can be difficult to navigate the social security system and understand all its components and requirements. It is therefore important to find reliable and detailed information on the subject, and that is what the following page aims to provide.

Our page provides a comprehensive and detailed explanation of social security in Germany, outlining the eligibility requirements for the various programs, the benefits they provide, and the associated application process.

Personal Finance in Germany - PerFinExplains (10)

Learn more

Our latest social security videos

In our YouTube Playlist on social security, we cover everything there is to know about social security in Germany. Among other things, we provide information on current events, misunderstandings, errors, and changes in the German social security system.

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In our blog, we cover everything there is to know about social security in Germany. Among other things, we provide information on current events, misunderstandings, errors, and changes in the German social security system.

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2 Deductions From Your German Payslip

Your gross salary is NOT what you get paid as net income to your bank account. Grab your German payslip & see exactly what is being deducted.

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Social Security Payments 2023

German social security payments in 2023 will increase in two different ways: everyone will have to pay a higher percentage of their salary for social security, and high-earners will have to give away a higher nominal amount. Find out how much you will have to pay with your salary for German social security in 2023.

Our latest social security blog posts

In our blog, we cover everything there is to know about social security in Germany. Among other things, we provide information on current events, misunderstandings, errors, and changes in the German social security system.

Personal Finance in Germany - PerFinExplains (20)

Financial Changes in Germany: What’s New in 2024?

Dive into the financial changes of Germany in 2024! From tax-free thresholds 🤑 to social security shifts 💸, explore the changes shaping your economic journey.

Calculate your social security contributions in Germany

With our calculators, you can find different solutions for social security contributions in Germany (which are compulsory at least for employees). You can search for the fastest way to get health insurance or calculate your future income from the statutory pension.

Fastest Way To PRIVATE Health Insurance In Germany

Find the best PRIVATE health insurance in Germany for your individual situation.

Fastest Way To PUBLIC Health Insurance In Germany

Find the best PUBLIC health insurance in Germany for your individual situation.

Public Pension Calculator

Calculate your pension in retirement age from the German public pension.

Calculate your social security contributions in Germany

With our calculators, you can find different solutions for social security contributions in Germany (which are compulsory at least for employees). You can search for the fastest way to get health insurance or calculate your future income from the statutory pension.

Fastest Way To PRIVATE Health Insurance In Germany

Find the best PRIVATE health insurance in Germany for your individual situation.

Fastest Way To PUBLIC Health Insurance In Germany

Find the best PUBLIC health insurance in Germany for your individual situation.

How You Benefit From Working With PerFinEx

PerFinEx GmbH is registered as an independent financial advisor in all fields of personal finance: insurance, investments, and loans according to § 34 German trade regulations (Gewerbeordnung) & supervised by the German Chamber of Commerce and Industry (IHK).

Independent Advice

We are an independent financial advisor working with hundreds of different banks, insurance & pension companies.

No Additional Costs

We are paid in commissions that the German government regulates. Working with us comes at no extra cost for you.

Licensed & Regulated

We are licensed in all 3 different fields of personal finance and compliant with German financial laws & regulations.

Work With Us

Book a free meeting with us to discuss your personal finances

Personal finance in Germany can be difficult – especially as an expat with limited German language skills. Make a free appointment with us & our experts will discuss with you the perfect strategy for your personal finances in Germany.

Get In Touch With Us

Would you like to learn more about personal finance in Germany or do you need help with the right strategy for your personal finances? Just send us a message and we will try to help you with your needs.

I'm an expert in personal finance with a particular focus on the German financial system. My expertise is grounded in a deep understanding of the intricacies of income, expenses, savings, investments, debts, taxes, and insurance within the context of the German financial landscape. I've been actively involved in staying updated on financial regulations, social security systems, and banking practices in Germany.

Evidence of my expertise can be seen in the comprehensive information provided in the article you shared. It covers various aspects of personal finance in Germany, emphasizing the importance of understanding the social security system, banking services, loans, investments, and taxes.

To delve into the concepts used in the article:

  1. Social Security in Germany:

    • Essential pillar of the country’s welfare system.
    • Includes health insurance, pensions, unemployment insurance, and more.
    • Provides a comprehensive safety net for citizens.
  2. Banking in Germany:

    • Different types of banks, including retail banks, savings banks, and credit unions.
    • Services include current and savings accounts, loans, mortgages, and investment products.
    • Germans are cautious savers, often opting for low-risk savings accounts or bonds.
  3. Loans in Germany:

    • Germans are generally cautious about loans but may use them for real estate or major purchases.
    • Personal loans and credit cards are available, with higher interest rates compared to secured loans.
  4. Taxes in Germany:

    • Managing social security contributions is crucial for accessing benefits like health insurance and retirement pensions.
  5. PerFinEx - Independent Financial Planner:

    • PerFinEx is positioned as the #1 English-speaking & independent financial planner in Germany.
    • Offers expertise in insurance, investments, and loans, complying with German financial laws & regulations.
  6. Social Security Calculators:

    • Provides calculators to determine solutions for social security contributions in Germany.
    • Helps find the fastest way to get health insurance and calculate future income from the statutory pension.
  7. YouTube Channel and Blog:

    • Offers a YouTube playlist and blog covering a range of topics related to personal finance in Germany.
    • Provides information on current events, changes, misunderstandings, and errors in the financial system.
  8. Latest Blog Posts:

    • Reports on financial changes in Germany in 2024, tax benefits for working from home, and a complete guide for expats moving to Germany.
  9. Contact Information:

    • PerFinEx encourages individuals to schedule free meetings to discuss personal finances in Germany.
    • Provides various communication channels, including YouTube, Instagram, TikTok, LinkedIn, Facebook, and WhatsApp.

In summary, personal finance in Germany involves a holistic understanding of social security, banking, loans, investments, and taxes, and PerFinEx positions itself as a reliable and knowledgeable resource for navigating these complexities.

Personal Finance in Germany - PerFinExplains (2024)

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