Save Money In Germany [2024 Tips+ Examples]

Germany is a global hub and developed country in Europe. When moving to Germany, you might be worried about the cost of living as saving money is also necessary.

Expenses

Rent is the biggest expense in Germany, as you pay one third of your net salary for accommodation, but to save money, you can find an accommodation in one fourth of your salary. In big cities, you need approx 60-80€ per month for transportation. Grocery expense depends upon your eating habits, and shopping spot. Insurance cost is a must in Germany.

Minor expenses include utility costs, banking fees, phone, internet, dining out, gym, and clothing depending on your lifestyle. 

Living Cost in Germany

Living cost in Germany depends upon the city you live in. Southern Germany is expensive compared to Eastern Germany.

Amount Required for A Single Person

If you are a single student, you need 934 EUR per month to survive depending on your city and living style. You can also save out of this amount.

If you are a working professional, you need more money to manage your transport, apartment cost, and other expenses. 

Cheaper Health Insurance

Health insurance is a must in Germany regardless of your residence status. It makes it easier to visit doctors whenever you need and the cost is covered by your insurance provider.

Two kinds of health insurance are available in Germany, Public and Private. For private heath insurance, the price depends on the insurance companies and the chosen coverage plan. Ottonova offer excellent support service in English. Public insurance is cheaper (105 – 120 EUR per month) If your are a student under 30. Depending upon your income, the price can go from 195 to 476 EUR.

Cost Effective Rental Apartment

Try to look for cheaper apartments in the beginning and invest your savings to increase your earnings. Housing in the outskirts of the city is cheaper than in the main city.

Budget Friendly Accommodation

One-Third Rule: If you paying one third of your income to the accommodation then you are paying the average. 

Subsidized Apartments: Each city have subsidized apartments to rent that have huge waiting list. If you will be in a city for longer period, add your name in the waiting list.

Sharing Apartment: You can lower the cost if you choose shared flat as they are cheaper.

International Areas: You will find a lot of internationals in Germany due to which chances of getting an accommodation is high and the prices are also reasonable.

Suburbs or Outskirt: You can find a spacious and affordable apartment in the outskirts and save money to invest in something better.

Other Costs

Deposit:  When you rent a flat, you pay a deposit (Kaution) of one to three months as a security which is refundable when you leave the flat. Landlord will deduct the repair expenses from your deposit.

Liability Insurance: To make a residential contract, you must have liability insurance (Haftpflichtversicherung) that helps when you damage your landlord’s property. GetSafe liability insurance does not require any paperwork and offers support services in English. 

Save Money in Utilities

When you rent an apartment, a few utilities are included like heating, water, electricity, and internet. 

You should expect an average of 2.5 EUR per square meter for utilities. Sometimes, tenants only pay a warm rent including utilities.

Mobile Phone: Mobile phone and SIM packages are affordable if you have a German phone number. You can compare different German mobile phone or Sim packages to get one best option for you.

Switching Electricity Providers:  It is common to switch to the cheaper electricity providers. A regular change in electricity service providers can help in saving cost. 

Internet: If you have a private accommodation, get your own internet connection to connect your PlayStation or streaming platforms like Netflix & Amazon Prime. 

Television & Fixed Phone Line: If you are interested in German TV Channels, get an internet package with Television. You can also get a fixed phone line for your home.

Radio Fee: Public service broadcasting license fee (Rundfunkbeitrag) and registration with GEZ (Gebühreneinzugszentrale) is mandatory for every household. The cost is 18.36 EUR per month.

Buy Cheap Grocery

As per economists, Germany is going towards recession. There is a price increase in everything, like bread, eggs, milk etc. Cheaper grocery stores are Aldi, Lidl, Netto, Penny, and Norma.

A single person spend 150-200 Euros per month on grocery depending on what you buy the most and where you buy it. Couples spend around 250- 400 Euros per month. You can use a payback card to collect points and save money.

Transportation Cost

Public Transport: If you are frequent traveller, use public transport and buy a monthly ticket. In Munich or Berlin, expect 60-90 Euros or more per month depending on your zones. 

Bahncard: It is a good option at a very low price and offers great discounts while travelling by rail or bus. If you are less than 27 years, get a BahnCard.

Taxi: They are expensive starting from 2.5 EUR to 6.1 EUR depending upon your city. A taxi costs in Germany around 1.6 to 3.2 EUR per kilometre plus a small tip. A short trip can cost 10 EUR or more.

Carpooling: For daily commuting, do carpooling by using BlaBlaCar app. Offer rides to save money, or plan group travels.

Car Sharing Services: Car sharing services like car2go, ShareNow, Stadtmobil, and Flinkster offer membership to rent their car whenever you need and you pay only for the usage. They charge per minute, per hour, and per km. This saves money for maintenance, insurance, and gasoline. 

Cycling: Biking and cycling in Germany is a good option if you want to save money and stay healthy. Remember to buy a good bike lock because bicycle stealing is common in Germany. 

Owning A Car: If you own a car, get car insurance and its maintenance and also gasoline. Having a car in Germany is costly.

If a car is a must, then buy an electric or hybrid car.

Pay Less Taxes

Income Tax: Germany has a progressive income tax rate so you have to pay more if you earn more. It can go up to 42%.

Church Tax: A church tax of 8-9% must be paid if you are registered as a church member. Avoid mentioning your affiliation if you don’t want to pay church tax.

Solidarity Tax: Pay a solidarity tax of 5.5% before 2021 (if you paid taxes more than 972 EUR per year). Costs for German unification are catered with the Solidarity tax and 90% of the taxpayers do not have to pay the solidarity tax starting from 2021.

Other Taxes & Contributions: Pension costs and social security contributions are deducted from your income.

Maximize Your Tax Returns

You can claim tax returns, if you think you paid more in terms of taxes. To claim, keep all paperwork and expense receipts with you. Find a good English-speaking tax consultant to do your tax returns. Otherwise you can use an app to do it yourself. Claim;

• Shopping for work like clothes, table & chair (if working remotely)
• Travelling to and from the work 
• Maintenance expenses for your apartment
• Double household expenses
• Outstation visits due to your job. 
• Remittance to your parents

Other Expenses & Saving Tips

Expenses related to clothing, sports or entertainment may arise but you can overcome them.

Dining Out Cost

Dining out is expensive if you want to save money. Depending on your city, the average meal costs 8 to 15 Euros. You also have to pay the tip. Cook food at home if you wamt to save money. Being student, you can easily eat at the university’s canteen “Mensa”. Being working person, eat at workplace canteens. 

To eat Fast food, use McDonald’s, and Burger king apps to save money from coupons. Another app “Too Good To Go” have list of restaurants, bakeries and Cafes that are cheap.

Maid or Babysitter Cost

Hire a maid to get cleaning services at 12-15 EUR per hour depending on your city. The cost of a babysitter can range between 20-25 EUR per hour depending upon the qualification.

Cinemas Cost

A cinema ticket for a normal day will cost 10-12 EUR. Weekends ticket are a bit expensive but you can get a one-month subscription for 10 EUR. Save this cost through different streaming options.

In Cinamaxx Cinemas, buy 26 Euro gift pack, book any 2D movie, and get two drinks and one popcorn (upgrade for just 22 cents).

Buy Cheap Clothes

When you need clothes, buy good quality and affordable clothes from;

• H&M (fashion clothes)
• New Yorker (young and hip kind of fashion)
• C&A (fashion clothes)
• Primark (cheapest)

Buy Cheap Shoes

If you need a good pair of shoes, buy from Deichmann and Footlocker. If you know the exact size, order from eBay & Amazon. 

Buying from flea market (Flohmarkt) also save money as people sell off their second-hand shoes, clothes and other things which you can buy at a cheap price.

Gym Membership Cost

A normal gym membership cost around 30 EUR per month and a premium gym costs around 100 EUR per month. You can’t cancel your contract in the middle so start a contract for 1 year after careful consideration. You can only cancel if you change your city. Find a gym with monthly cancellation policy or transfer option.

Final Words

Using these tips can save a lot of money that you can invest in something good. Make decisions wisely and choose shopping spots carefully. Organize yourself financially and buy some Stocks & ETFs or Crypto.