A call to save for low earners

At the turn of the year did the costs increase again? The dispo is already back on the attack? With this reality, unfortunately, a large number of Germans are affected every month. The bottom half of German citizens barely owns one percent in national wealth. Every third makes itself according to polls  Worries about whether they will have enough money in old age – a quarter only have about 50 euros at the end of the month. Konto-Kredit-Vergleich.de shows in this Call for savings for low earners some options on that Households between 20,000 and 50,000 euros annual income should exploit.

How you can save as a low earner

Your saved money is calculated as follows: Saving = Income – Expenses. No Brainers! what can you do now Income up, expenses down. So far, so easy!

You can find out how to calculate your pension gap here

First you can try to reduce your costs. The fixed costs in particular are tough, because they have to be paid every month. Check it out Electricity, internet or mobile phone contract to cheaper alternatives.

Next you can try to increase your earnings. When was the last time you spoke to your boss about your salary? The most common reason for a raise is loud a survey the Job change to a new employer. Hard workers, on the other hand, go home much less often with a wage increase. Taking on new tasks is much further down the list. Only in nine percent of the cases was taking on new tasks the reason for the larger pay packet. Regular exchanges with your supervisor enable you to determine much better where weaknesses lie in your work and where you can still improve. The improvement of these weak points is a strong argument in a later salary interview that the boss cannot easily refuse.

Job change to a new employer18 percent
Company-wide salary increase16 percent
Internal job change or promotion16 percent
Top 3 most common reasons for salary increases. Survey of over 1000 people. Source: link

Low earners also have the opportunity to save more money through state allowances. For example, an application for housing benefit can be worthwhile. Not only the amount of the salary is included here, but also the number of family members and the amount of the rent.

Lower your costs

If you have 1,000 euros in the overdraft facility, you pay around 100 euros in interest at a normal bank - sometimes even more. The banks I recommend  DKB*, Comdirect*, ING* all charge around 30 – 40 euros less. The Comdirect is currently offering you a bonus of 25 euros. All you have to do is install and use Apple Pay or Google Pay on your smartphone. However, it is better not to get into the overdraft facility in the first place. For this it is advisable to have a buffer of 2 to 3 monthly salaries on one cash account to hold up. If you currently have a larger amount in the overdraft facility that you cannot repay within 30 days, you should shift the debt to an installment loan. With an amount of 1000 euros, you can save around 60 euros. Several cheap You can find installment loans here.

If you have not yet thought about the electricity supplier, you will be supplied by the expensive basic supplier. Other providers are often 150-250 euros cheaper. Another advantage is that you can also pay attention to green electricity here. You save money and do something for the environment at the same time. The mobile phone contract is often more expensive than it needs to be. Inexpensive prepaid tariffs with 2 GB of data and a telephone flat rate are available for as little as 8 euros. These include, for example, Aldi Talk or Lidl Connect. A DSL connection including a landline network does not have to cost more than 20 euros.

Monitor your income and expenses

If, despite your efforts, you simply don't have any money left at the end of the month, it's a good idea household book to write down income and expenses for a few months. This will make it easier for you to see later where most of the money is really going. Modern checking accounts such as N26* can support you in tracking your monthly income and expenses. This eliminates the need to create complicated Excel sheets.



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Often people are afraid to negotiate their salary, but this work - as already mentioned - can bear good fruit. The most common reason for salary increases was changing companies. Of course, it is also possible to negotiate salary in companies that are bound by collective bargaining agreements. After all, there is often room for maneuver in the classification. You could also think about opening up a second source of income with a part-time job.

Direct help from the state

If you are short of cash anyway, a setback at work or a drastic rent increase can quickly cause problems. So that you don't have to give up your apartment, the state can help you with housing benefit. A calculation example: A family of four with two children in Stuttgart with gross rent of 2000 euros and 700 euros cold rent comes to a subsidy of 521 euros per month. That is 75 percent of the cost of cold rent. Families are also entitled to the full child supplement from the family benefits office. That's another 370 euros for two children. In total, the family receives a subsidy of 891 euros per month. That's almost half an extra salary and more than the monthly rent. It is therefore worth submitting the relevant applications!

By the way: Even with a gross income of 3,500 euros, the tax authorities would still contribute 122 euros in housing allowance for the Stuttgart family of four.

Provisions with state funding

There is another subsidy with which the state improves small and middle incomes. the Employee Savings Allowance. Married couples who earn no more than around 50,000 euros a year in total receive this. By saving the full 40 euros a month in capital-forming benefits, you can receive a bonus of up to 480 euros after 6 years of savings. A good incentive to top up the employer payments yourself.

If you are a low earner and still want to make provisions and save for your old age, you should take a closer look at the Riester. In particular, people with a small income benefit from high government allowances without having to pay a lot of money themselves. Here again the example of the Stuttgart family with a gross monthly income of 2,000 euros. Let's assume that the income is only shared by both partners with 2 × 1,000 euros each. If the children were both born after 2008, you will receive annual supplements to the Riester pension of 2 × 775 euros, while everyone only has to pay 5 euros a month.

Even with a higher monthly income of 3,000 euros, the couple would only have to pay around 21 euros a month in order to receive the maximum subsidy with full co-payment.

Saving for low earners – conclusion

Even those who earn little can set aside a small amount every month. It is advisable to tighten the set screws of income and expenses at the same time in order to maximize the effect. Check your phone, cell phone and electricity contract for cheaper alternatives. If you are in the overdraft facility, it is advisable to reschedule with a cheap installment loan. In addition, in such a case, you should definitely start keeping a household book so that you can identify your biggest cost eaters.

Modern checking accounts such as N26* can support you in tracking your monthly income and expenses. This eliminates the need to create complicated Excel sheets. By creating sub-accounts, you also have a good opportunity to save a small amount every month. Also check whether you can claim government allowances such as housing benefit. Even with a gross income of 3,500 euros, a family of four in an expensive city such as Berlin, Hamburg, Munich, Frankfurt or Stuttgart can often receive housing benefit. Finally, you should consider receiving further state support for old age with a Riester contract.

Kontoempfehlung 1: Sparen für Geringverdiener

Kontoempfehlung 2: Sparen für Geringverdiene

Kontoempfehlung 3: Sparen für Geringverdiene

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Disclaimer: This is well researched but non-binding information.

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