Insurance and Savings – Tips and Advice

Insurance

• Purpose: protection against unexpected events (accident, illness, damage, death).
• You pay: a premium (monthly or annually).
• Benefit: you only receive money if a loss event occurs.
• Example: if you have accident insurance and you get injured, you get a payout. If nothing happens, you “lose” the premium you paid, but you had security.

So: You pay for peace of mind and protection.

Savings

• Purpose: creating a financial reserve and money for the future (children's education, retirement, travel, home).
• You pay: the amounts you deposit into an account, savings fund, or investment.
• Profit: money grows over time (due to interest or investments).
• Example: you deposit €50 every month → in 10 years you have savings + interest.

So: you pay yourself to have more in the future.

INSURANCE TIPS

• Start with the basics
• Health, accident, car, and home insurance are the foundation.
• Without these, the risk is too great.
• Check the shelves regularly
• At least once a year, check if they still fit your life (children, credit, new car, moving, etc.).
• Compare offers
• Prices and coverage vary – don't just choose the first one, check with several insurance companies.
• Read the fine print carefully
• Watch out for exclusions (e.g. sports injuries, floods, self-harm).
• Don't buy too much.
• Only pay for the insurance you really need. Over-insurance is an unnecessary expense.

TIPS FOR SAVINGS

• Pay yourself first.
• Put 5-10% of your paycheck into a savings account right away. If you wait for “what’s left over,” you often end up with nothing left over.
• Create an emergency fund
• Goal: at least 3–6 months of income on the side (for illness, job loss, emergency repairs).
• Save for goals
• Separate your savings: one account for travel, one for your children's education, one for retirement.
• Take advantage of an interest-bearing account
• Start as soon as possible, as small amounts add up over the years.
• Save automatically
• Set up a standing order so the money transfers itself – less temptation to spend.