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Moving to Germany | Preparing a relocation budget, understanding the cost of living in Germany and managing finances after the move

| Anna |

Przeprowadzka do Niemiec | Przygotowanie budżetu na przeprowadzkę, zrozumienie kosztów życia w Niemczech oraz zarządzanie finansami po przeprowadzce

Financial planning for a move to another country, such as Germany, requires careful consideration and preparation. In this blog post, we will focus on three important aspects: creating a budget for the move, understanding the cost of living in Germany and managing your finances after the move.

1. Prepare a budget for the move

Start by creating a detailed budget that takes into account all the anticipated expenses involved in moving. Here are some key categories you should consider:

  • Transport costs: Depends on the distance and the amount of belongings being transported. Are you planning to hire a removal company or transport things yourself? Prices can vary greatly depending on whether you decide to use a professional removal company to take care of everything from packing to transport, or whether you decide to transport your belongings yourself. Check out the different offers and choose the best quality-price ratio option.
  • Visa and permit fees: If you are moving from a non-EU country, check what documents you will need and how much they will cost. If you are moving youfrom a non-EU country, you need to be prepared for additional administrative costs. These fees may include visas, work permits or residence permits.
  • Accommodation deposit and first rent: In Germany, it is standard to pay a deposit, which can be up to three months’ rent. This is a large initial expense to which the first month’s rent must be added.
  • Insurance: Don’t forget insurance, which can cover not only your health but also your personal possessions, especially when moving house and in your new home.
  • Other costs: For example, disconnection and connection fees for services in the old and new residence. Other costs that are often overlooked include cleaning fees for the old flat, as well as the purchase of new furniture or household appliances in Germany.

2. Understanding the cost of living in Germany

The cost of living in Germany can vary from region to region. Cities such as Munich or Frankfurt are among the more expensive ones, while the cost of living in smaller cities or in the east of the country can be lower. Here is what to consider:

  • Rent: This is usually the largest monthly expense. Prices can vary depending on the location and standard of the flat. Research the local housing market to understand what average rental prices are. Property portals and local forums can be helpful here.
  • Food and daily expenses: Food prices, municipal charges and public transport. The cost of food, public transport and utilities are important elements to consider. Germany is known for its high quality services, which can also translate into higher costs.
  • Health care: In Germany, the health care system is financed by health insurance, which is compulsory. The health system in Germany is complex but effective. It is useful to understand how health insurance works and the costs of additional insurance.
  • Education and childcare: If you have children, consider the cost of a crèche, nursery or school. If you are moving with your family, understanding the education system and the costs involved will be key. Public nurseries may be free, but private nurseries and kindergartens can generate significant monthly costs.

3. Financial management after the move

After the move, it is important to stabilise your financial situation quickly:

  • Open a bank account: In Germany you need a local bank account to manage your daily finances. Set up an account with a German bank as soon as possible. This is essential for managing your daily transactions, receiving your salary and paying your bills.
  • Budgeting: Monitor your spending and adjust your budget as you learn the financial realities of your new location. Maintain accurate expense tracking to see where money is being spent and where you can save.
  • Saving and investing: Consider the savings and investment options available in Germany to build your financial future. Once you have stabilised your situation, start thinking about saving and investing. German financial products, such as pension plans and investment funds, can offer favourable terms.

Moving to Germany

Moving to another country is a big change, but proper financial preparation can make the process much easier. By setting a budget, analysing costs and managing your finances effectively, you can enjoy your new chapter of life without undue financial stress. Moving to Germany requires solid financial preparation, but with the right knowledge and planning, you can ensure a smooth start in your new country.