Our financial situation - Your opinion?

Hi everyone,

my husband and I are currently working on our financial planning because we still aren't quite sure which loan (with different installment amounts) we want to sign. So we're using the anonymity of the internet and sharing our numbers here.

First, about our personal income and expense situation – the expenses show the average of the last three years for both of us together – amount per month.

Groceries = €712
this also includes alcohol, fish and meat orders from 'gourmet dealers', etc.

Entertainment = €459
eating out at restaurants, going out (cinema, admissions, etc.), gifts for others, mobile phone, Netflix, books and magazines

Body = €371
hairdresser visits, barber, hair care products, cosmetic visits, makeup, doctor treatments, medication

Shopping = €296
all clothing and shoes

Housing = €350
NO rent, only furnishings, household appliances, garden, etc.
For your information: We paid for a major renovation of the house we currently live in and are now paying off this investment as rent until we move out next year.

Insurances = €1,370
several pension insurances, building savings, disability, dental insurance, liability, accident, household contents, building, etc.

Car = €221
we have only one car, included are insurances, fuel, and repairs
For your information: The car was bought new 4 years ago (company car for €40k), both of us will have company cars in the near future

Miscellaneous = €25
everything that doesn’t fit anywhere else

In recent years (even in 2020!) we spent a substantial amount additionally on vacations, which, due to our upcoming baby and house, is not planned for the future for now.

So, please no comments on the expenses – we have always lived very well and treated ourselves :)
In total, over the last three years without vacations, we spent €3,803 per month and lived without any restrictions.

We now take these absolutely real numbers as given for our future calculations.

Income hers, €4,000 – from November €4,500 (but that actually only matters in a year, as maternity leave starts in November)
Income his, €3,900 – tendency also rising
Current variable bonuses/special payments per year for both of us together are about €6,000 per year, tendency clearly rising (for her also higher bonus due to new salary). Income as of today, conservatively calculated: €7,900 per month
After deducting living expenses, we are now left with a disposable amount of (7,900€ - 3,803€) €4,097 per month.

The year with parental allowance is enough to cover our expenses, but no additional capital will be saved. With our flexible jobs, a three-quarter position in daycare is possible, but still we can both work full-time (if we want to). The servicing of the full loan (i.e., payment of the full installment amount) is only necessary shortly before I return to work.

My cash flow projection looks as follows:
€4,100 surplus after 'old' lifestyle
+ €400 child benefit and increase in net salary due to child allowance
- €1,000 costs for child (daycare and everything related to the child, clothing, food, outings, toys, etc.)
- €2,200 installment for the house (KfW 40+)
- €500 additional costs for the house
= €800 surplus per month [B](for vacation and unforeseen expenses)
+ bonus (as a little cherry on top)

Honest question: Are we painting too rosy a picture? Are we overlooking anything? We are used to a generous lifestyle and the financial commitment to the house is a bit scary – more for my husband than for me.
But I would still say: everything fits, we can do it.
The €2,200 installment includes a loan of €550k, with which, plus equity (€200k) and the paid-for land (€120k) and later KfW grants + storage subsidies, we can fully design our house including furnishings, yard, and garden according to our wishes. So there is no "we will save for a few more years" assumed. The loan is intended to cover the complete house construction; when money is left over (for example from savings or bonuses), this should be used for vacations / professional breaks.

What do you think???

due to our upcoming baby

+ 400€ child benefit

Are you having twins? Then the 1000 EUR per month including care presumably will not be enough.

No, it refers to child benefits and more from the net income, as the child reduces taxes. From friends, I had been told about around €200 for this + child benefits.

Sounds great!

Does the net amount remain similar with 2 company cars?
With fancy cars, the tax per vehicle can quickly be a few hundred euros + maybe a deduction from the gross salary?

I think the child benefit is set too high despite the tax advantage.

I find ancillary costs of 500€ very high for a KFW40+ house.
The biggest item there, I think, is property tax.

Of course, you can play around with the term.

If entitled to a company car, the salary increases by a huge jump. The net amount I have set should already include taxation, but of course I don't know exactly. Additional costs are set very generously, that is true. However, it should also include things like garbage fees and the [Grundsteuer] you mentioned.

You have 200k equity, the land, and then the exceptionally generous salaries.

I fail to see why you waste your time on this forum. Go eat or go out somehow. Seriously.