VIDEO: Calculating the Cost of Living

That's part of the cost of living

• One of the biggest items is surely the rent. Depending on the region, square meter prices between 6 and 20 euros are the rule, with rents being extremely high in large cities like Munich. For a two-room apartment with 60 square meters of living space in a reasonably good location, you now have to pay approx. 750 euros cold or Calculate 900 euros warm rent (as of 2011). The smaller the apartment, the more expensive.
• You estimate the cost of groceries per person at around 150 to 200 euros per month (as of 2011), which is also a large item in subsistence.
• Costs for clothing and hygiene are also included.
• Energy costs now make up a large proportion of the cost of living. In a four-person household, you have to estimate around 150 euros for electricity. If you add the heating costs, for example if you are heating with gas, add almost the same amount again.
• Depending on the personal circumstances, the insurance premiums must also be added. Many people pay into life insurance, private accident insurance, additional dental insurance, and the self-employed in addition to private health insurance. Anyone who has a car will also have to reckon with contributions for vehicle liability insurance as well as vehicle tax and, of course, costs for petrol / diesel.
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Monthly expenses - this is how you keep track of things

When it comes to monthly expenses, you have to choose between fixed costs and variable costs ...

• This is followed by more or less smaller positions such as landline telephones and the Internet (approx. 50 to 80 euros per month), mobile phone (approx. 20 Euros).
• With so many marriages resulting in children divorcing, child alimony is a position that many are part of.
• If you have pets, they also need food, hygiene and visits to the vet for vaccinations or in the event of illness.
• According to the Federal Statistical Office, ongoing payments for loans are not part of the cost of living, but they are also a common item in spending.

How to calculate the monthly cost

1. On a piece of paper, write down all the monthly, quarterly or yearly expenses, broken down according to these payment methods.
2. Divide the sum of the amounts you pay quarterly (such as insurance premiums) by three. So you have the monthly amount.
3. Divide the total of the amounts due annually (e.g. membership fees) by twelve.
4. Now add up all of the results.
5. Add an amount of around 20% to this amount for unforeseen expenses, such as the Washing machine refused their service.

It is a good idea to keep an eye on the cost of living. You can also find out weak points in your financial planning, for example unnecessary insurance or avoidable expenses. Keeping a budget book makes it easier to get an overview.