When thousands of young people start their new jobs on the first of August, many challenges await them. The temptation to spend the first self-earned money directly is great. But if you want to take your own life into your own hands, you have to take responsibility early on – also in terms of finances. CosmosDirekt shows how.
The start of the job not only brings with it independence and financial freedom, but also new obligations: the state requires taxes, the caretaker rent, and the first home would also like to be set up. It is important to have a good grip on the finances. There is no way around saving and insuring. But especially with this topic, many young people lack the perspective. Thus, only 18 percent of under-24s feel adequately informed about their financial future. Two-thirds of respondents do not know what would be suitable for them. This was the result of a representative survey by the University of St. Gallen commissioned by CosmosDirekt. Silke Barth, the insurer’s financial expert, explains what career starters should look out for.
Tip 1: Secure grants from the employer.
Whether car or apartment: If at some point major purchases are planned, it means saving. Many employers help, often there is a monthly subsidy – for example, to fund savings plans or Bauspar contracts. In addition, still beckons a legal subsidy. “Job starters should not give up the gift from the boss and inform themselves about the exact rules in their company. However, some companies make the grants subject to certain conditions, such as a minimum length of service, “said Barth.
Tip 2: Protect Against Job-Off.
If life does not go according to plan and you can no longer practice your job for health reasons, financial security is important. A fate that affects around one in four employees. Without a job, finances quickly get out of balance. An occupational disability insurance ensures the livelihood of a job, whether due to accident or illness. “Protection is extremely important, especially for new entrants, since they are not entitled to the state disability pension in the first five years of their employment, which is already very low,” says Barth. “Many insurers offer special starter rates for young professionals that are adapted to the special needs of young people.” The expert advises job beginners to ensure that disability insurance includes a reinsurance guarantee. Then they could later, for example, after marriage or the first child, the agreed pension without renewed health examination increase.
Tip 3: Do not give away any interest while saving.
The next vacation or a new mobile phone: In order to ensure that extra expenses do not strain the budget, career starters should set money aside in good time. “Even with small monthly amounts can create a financial cushion. That creates security and the freedom to afford something, “says Barth. In times when even the near future is less and less predictable, career starters remain flexible with such a reserve. But: “Who leaves the money in the checking account or passbook, gives away interest.” More yield provide money market accounts, where investors at any time without loss of money can dispose. Another alternative is high-return and flexible investment options such as the CosmosDirekt Flexible Provisioning Plan. “Flexible investments make it possible to save money for the future without having to commit to long-term contracts,” explains Barth. Depending on the current life situation savers can increase, reduce or even suspend deposits. If you need money at short notice, you can access the credit for free each month. The guaranteed interest rate gradually increases from 1.5 to 3.5 percent in the first five years. Later, the deposited amounts can be easily converted into a long-term retirement plan.
Tip 4: Without private liability insurance is not.
An insurance that everyone should have is the private liability insurance. Because who inflicts damage to third parties, it must stand with his entire fortune straight – for a lifetime. Even a small carelessness can cause immense damage and threaten the financial existence. The private liability catches the costs. “At the latest after completing the training, the protection ends with the personal liability insurance of the parents. Even if young people get married, start their second education or start their careers, they are no longer insured. Career starters should therefore examine carefully whether and for how long they are still protected by the parental contract, “says Barth.
Checklist for career starters
- Capital-efficient services used?
- Secured against occupational disability?
- Financial cushion created?
- Informed about retirement?
- Private liability insurance completed?
- Household insurance needed?
Financial tips for career starters 142 KB
Insurance Tip 2011 08 02 Info Table 74 KB