Finances and insurance 5 steps to an optimal start in professional life
Congratulations on the first employment contract! The lean training and student years are finally over. But: Now some things have to be settled that were not on the to-do list until now. We show you what's important in terms of finance and insurance – and what's not.
These are three basic rules you should take to heart as a first-time employee:
- One step at a time, don't rush things
- Compare all offers well
- Cover important risks early
1. When is a change of account worthwhile?
For pupils, students or trainees, the current account is often free of charge. This can change when you start your career. Check your current bank's account maintenance fees and compare them with other offers. Under certain circumstances, a change may be worthwhile.
Important: Check whether ATMs are located near your home or place of work! The cheapest bank is of little use if the nearest surcharge-free ATM is far away.
2. What changes in health insurance?
Pupils and students are usually covered by family insurance. That changes with the first employment contract. Most newcomers to the profession now switch to statutory health insurance. You and your employer each pay half of the monthly premium. The health insurer also enrolls you in mandatory long-term care insurance.
3. Which insurances do young professionals need??
Liability insurance – Immediately
One of the most important insurance policies is liability insurance. You need this immediately.
Your friend's cell phone has fallen into your water? Or you have scratched with the bicycle a foreign car? Without private liability insurance, such mishaps can be expensive. So as soon as your parents' insurance no longer covers you, you should definitely take out private liability insurance. This should cover personal injury and property damage for at least three million euros.
Occupational disability insurance – as soon as possible
"Occupational disability? I have not even started yet!"
True, but statistics show: One in four Germans retires from the workforce before retirement age. Common causes are musculoskeletal disorders, circulatory problems or mental illnesses. For these cases also occupation beginners should secure their living with an occupational disability insurance.
Private pension plan – Important, but can wait
Who protects himself early, keeps his standard of living also in the age. Therefore: don't start setting aside money for retirement at age 40. And don't worry: you don't have to take out a private pension insurance with your first job. You better take your time to take a close look at the options and offers and find the best strategy possible.
Other important insurances for young professionals
Little useful. Accident insurance pays only in very specific cases, which are usually already covered by disability insurance. This also pays for permanent damage after an illness. Accident insurance does not cover these.
As a young professional, you probably don't have an overly expensive home yet. Only if their home has expensive fixtures should you think about coverage.
4. Why is a cash reserve important?
Even if it is difficult, you should set aside a fixed amount of your income each month, preferably in a call money account. Financial experts recommend saving three to five months' salary as a safety buffer. This means that even those just starting out in their careers are well protected against unexpected costs.
5. Choosing the right financial strategy
Often there is a lot to finance before the first month's salary rolls in. The first rent, security deposit, renovation of the old apartment, professional clothing or owning a car to get to work. An installment loan can help here. This is how newcomers to the profession can get off to a good start and overcome their first financial hurdles. An easyCredit, for example, is not earmarked for a specific purpose. You determine the amount and term of the loan and can then use it for the things you urgently need. easyCredit caters to your individual needs. Particularly at the beginning of professional life, one should not overextend oneself, but ensure that the loan can be safely repaid. An advisory and non-binding conversation can be helpful here.
The easyCredit installment loan
- Credit amount of 1.000 Euro up to 75.000 euros
- Runs from 12 to 84 months
- Low maturity = higher rates
- Long term = lower rates
- Can be concluded completely online
Tip: If you apply for the loan together with a partner, the interest charge can drop.
Everything important done? Wonderful.
Then you can start your professional life well secured and without financial worries.