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The important financial tips of the past three months

2020-08-08T16:41:20.475Z


Whether corona consequences, tax returns or the stock market: Consumers can get through their finances better with a few simple pieces of advice. Five top topics in a quick check.


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Shopping street in Würzburg: those who save money have more to spend

Photo: Ralph Peters / imago images

Statistics can be extremely interesting. For example, when I look up which topics from my work were most popular recently. Where readers often have a problem or are urgently looking for a solution for their wallet. As is currently the case with large companies, let's take the figures for the second quarter of the year - and also dare an outlook.

Here are my personal top 3:

1st place: Corona

Of course, but actually mainly Corona and traveling. But there is also an old, big bad habit behind this: Airlines and tour operators live on their customers' advance payments - and that is often gone in the event of bankruptcy.

In the past few months, most of you have wanted to know how you can get your money back for trips that have already been booked. Legally, the thing is clear: you should get the money back. But in practice the money often doesn't come. Such problems are not even new: they already existed, for example, when Air Berlin went bankrupt.

And even package holidaymakers do not have one hundred percent security, although they are legally protected. Last year, the Thomas Cook case showed that the law was not designed to deal with major travel failures.

In the meantime, the largest tour operator TUI and the largest airline Lufthansa have received aid from the state during the corona crisis. With hundreds of thousands of customers, the money paid has still not arrived. The first have filed criminal charges. Government agencies, legal service providers and lawyers offer practical help. 

2nd place: tax return

Filing your tax return is traditionally particularly time-consuming in Germany. It's worth it, but still, many taxpayers put off the tiresome task. Now the tax authorities are trying a new strategy. Fines, here called late payment.

And right. In the second quarter, a particularly large number of us were busy with tax returns. Especially those who do their own taxes. They had to submit their tax return for 2019 to the tax office by July 31st. In the event of a violation, there was a risk of a late penalty of at least 25 euros for each missed month. (So ​​the topic continues into the 3rd quarter.)

Very personal consequence: Last weekend friends canceled the joint beer - with reference to their tax return. Well, it is really better to get back the average of over 1000 euros from the tax that was last with the tax assessment afterwards than to pay 25 euros per month late payment surcharge.

And if you've ever dealt with the tax, it's also worth collecting the data that can help you get a lot of money back in the year after Corona. Keyword home office.

3rd place: index funds

This is where my finding is particularly surprising. Because the Germans actually discovered the stock market for themselves during the crisis. Never before have so many people opened a securities account and taken an interest in funds in such a short time. And at the same time the potential new brokers are very cautious. You can also hear from the banks where the custody accounts were opened that many custody accounts have nothing in them yet.

But if securities end up in the custody account, then it should be index funds. Note: It is better to copy the stock market index than to fail at tinkering yourself - like most small shareholders. I always hope that the right index funds are there, i.e. market-wide, international equity funds. In fact, long-term investment has worked best with a wide range of international stocks over the past few decades. No losses for over 15 years and an average annual return of 7 to 8 percent. And that despite the dot-com crisis and the global financial crisis.

4th place: labor law and notice period

Our workplace is our financially most important contract. No wonder that the subject of employment contracts and dismissals is a long-running issue.

However, the situation has now completely turned in the second quarter. While in the boom phase of recent years many people were looking for a new employer and wondered how quickly they could say their old goodbye, the current question is how fast you can get off the sinking ship as soon as a lifeboat is in sight is. No wonder, with 635,000 additional unemployed and seven million employees on short-time work.

And 5th place: child benefit supplement

It was the months of government aid. The child allowance was important even before Corona: the new regulations at the beginning of the year had already increased interest. The Family Benefits Office pays up to 185 euros per child as a child surcharge per month so that families do not slip into ALG II. And then came the corona consequences for the family budget: short-time work, layoffs, self-employed people in financial difficulties. The result: In the second quarter there was even more interest in tips on how families can get help from the state to make ends meet. The money is given for free, intended for precisely such emergencies. You shouldn't leave that behind.

And if you ever need help from the state, you should also check your entitlement to housing benefit. If the family of four in Berlin pays more than 700 euros in rent and has less than 2800 euros in income, a hundred is given every month as support. Try one of the state calculators. Incidentally, singles and families within their own four walls can also apply for the grant. Then it is called load subsidy. Such money is of course particularly in demand in times of crisis.

And in the third quarter?

Corona and travel will remain as a topic, but this time the consequences of vacation travel in summer - from the risk of infection to mandatory vaccinations to the most important economic consequence for many. Who pays the wages if I have to be quarantined?

In addition, it will be exciting to see how the new German equity culture is developing, so what really ends up in the depot, and certainly also the question of how things will continue with their own workplace.

I keep you informed.

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Source: spiegel

All business articles on 2020-08-08

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