Salaries, A6 and other unknowns

But there are also some agitators in the range. It’s funny how some people here pull out the regulars’ slogans. Hartz 4 is expropriation and social exclusion in one complete package. Be glad that things are going so well for you up "there," you fall to the very "bottom" faster than you wish. I can judge that because I work in psychiatry and have already seen some fall. Believe me!

I am still in favor of a poll here in the forum

And then? You know that you are well above average here. You don’t need to have that confirmed by others. And still: I consider your project to be way too risky. If I understood you correctly, your company is a one-man show. And it hasn’t even been running as well for a decade as it is now. Right? If now, for whatever reason, you can no longer work—or your service/product is no longer in demand—you lose everything. I consider the people who build with 5000€ net/month to be more secure than you are. And a 100k car is not a sign of money. At least not of so-called old money.

But there are also some agitators in the mix. It's funny how some here are trotting out the usual pub talk slogans. Hartz 4 is expropriation and social exclusion combined in one package. Be glad that things are going so well "up there" for you; you can fall to the very "bottom" faster than you wish. I can judge this because I work in psychiatry and have seen quite a few fall. Believe me!

Since there are also pub talk slogans about "those up there" (see a few pages earlier, quote "nobody has gotten rich honestly yet"), I claim the same right for myself! Whether you like it or not

I go even further: The majority of the long-term unemployed are simply lazy! Everyone under 40 and without health limitations should perform community service after a certain time alternatively: 100% benefit cut.

Regards, Steffen

And then? You know that you are far above the average here. You don’t need others to confirm that for you.
And yet: I consider your project way too risky. If I understood you correctly, your company is a one-man show. And it hasn’t been running as well as it currently does for even a decade yet. Right?
If for whatever reason you can no longer work – or your service/product is no longer in demand, you lose everything. I consider people who build with 5000€ net/month more secure than you are.
And a 100k car is not a sign of money. At least not of so-called old money.

Well, take it easy.. of course I don’t need this statistic for myself. I know I am an outlier. I just want to have my thesis confirmed.. and that is: The average family income here in the forum is clearly above about 4000 EUR net, the federal average.

Indeed, you are right about my risk. It is very high.. how much higher than a fixed job in a corporation? No idea. Employment in the public sector would be the solution or being a civil servant. But it is not higher than if I were only earning half and we were building only half as much at the same time. So what is the conclusion: Small self-employed people only build with 100% equity or not at all? I try to mitigate the risk a bit by holding about 120k in reserve and having a loan-to-value ratio of 70%. Added to that is the good location and very likely short-term possible rental. If push comes to shove, we will just move out again or sell.

A high disability insurance, daily sickness benefit, daily hospital indemnity, and life insurance are naturally also in place.

Regards, Steffen

PS: I would immediately trade 4000..5000 EUR net income as a civil servant for my income

Hartz 4 is expropriation and social exclusion combined in one overall package.

You can see it that way. You don't have to. At least there are many countries in this world that would wish to have H4 as social security. As a society, one has to ask what it is worth to them. At least society in Germany does not want people to live in tents by the thousands (as, for example, in the USA).

However, society also does not want to spend excessively more on social issues; therefore, property, if available, is also taken into account.

I do not share Steffen’s opinion that the majority of long-term H4 recipients are lazy, but my wife (who works at the Job Center) does have some clients who "rest" on this hammock.

Some even make a business case that certain work is not worthwhile (for example, if the gap between H4 and salary is too small).

Be glad that things are going so well for you "up there," you fall to the very "bottom" faster than you wish

Of course, if you fall from a fairly high level, it’s a completely different story.

And then? You know that you are well above average here. You don’t need confirmation of that from others.
And yet: I consider your project way too risky. If I understood you correctly, your company is a one-man show. And it hasn’t been running as well for even a decade as it currently does. Right?
If for whatever reason you can no longer work—or your service/product is no longer in demand—you lose everything. I think the people who build for €5000 net/month are more secure than you are.

Well, not really. We are just as screwed if the job disappears as Steffen. The result is the same. You can only hope that by then you have paid off enough to allow a fresh start through selling.
Just because he is self-employed doesn’t mean he is riskier. He has his reserves in the form of one year’s salary, we employees have unemployment benefits. His product/service can just as well vanish, as the products/services of our companies can. And such a company can go down very quickly.

And regarding his “1 million euro house” ... if I remember correctly the plot of land was ridiculously expensive. The house itself isn’t shabby either, but far from the classic luxury villas.