D.he building up private wealth is really no picnic for young academics who live in big cities. On the one hand you have a decent income, but on the other hand life is so expensive that hardly any money is left. Therefore, home ownership and retirement planning are sensitive issues in many cases. If life is shaken by unemployment or divorce, there is even a risk of financial crash. Often, however, it is not big events, but small things that determine success or failure. How narrow the path is on the way to financial success becomes clear in today’s example.
A young lawyer is 33 years old. He is married and his wife is two years younger. The couple have a daughter who is nine months old and they would like to have a second child. The family lives in a major city in southern Germany. The gross monthly income is 5000 euros. Of this, after deducting social security contributions and taxes, exactly 3377 euros remain because the list of taxes includes seven items: 60 euros for unemployment insurance, 363 euros for health insurance, 606 euros for the tax office, 34 euros for the church, 71 euros for the Long-term care insurance, 23 euros for solidarity and 465 euros for pension insurance.