Modesto is situated at the heart of California’s fertile Central Valley, and the economy revolves largely around agriculture, food processing, and wineries. Healthcare is also a major employment generator. California has the third-highest cost of living in the USA, behind only Hawaii and the District of Columbia.^[1] Modesto’s cost of living is about 9% higher than the national average^[2] but close to the average for similarly sized cities in California.

Did You Know

• The median household income in Modesto, CA is $47,607/year, below the average salary in the US of $56,473/year.
• The state income tax rate for Modesto is 9.3% and the sales tax rate is 7.3%.^[3]
• US Federal income tax brackets range from 10% to 37%, depending on income.^[4]
• The average cost of health insurance in California is $588/person.^[5]
• Modesto’s unemployment rate in Dec. 2020 was 9.9%^[6], above the national average of 6.7%.^[7]

What Does it Cost in Modesto?

• 3-course meal for 2, mid-range restaurant: $95
• Beef round, 1 kg: $10.20
• Domestic beer, .5 liter: $5.00
• Broadband Internet: $60.62
• Cinema, 1 seat: $10
• Monthly public transport pass: $35
• 3 bedroom apartment, city center: $1,781.67 

On the “Big Mac Index” Modesto, along with the rest of the US, ranks 4th out of 56 countries surveyed, with the iconic burger costing US$5.66.

Getting to Know the Household

We started our interview with some basic questions about the household, their lifestyle, and their approach to managing their finances.

Introduce yourself – Tell us a couple of things about yourself so we get to know you better.

I am a female who loves animals, nature, and entertainment.

Location – Where do you live (city, country)? What kind of place is it? How do you like living there?

Modesto California. It’s ghetto af and I do not enjoy the area.

Household structure – How many adults, kids, what ages?

2 adult both 26, no children, 4 dogs, 1 cat and 1 rabbit.

Occupation – What do you and other adults in the household do for a living?

Food safety, QA, Sharpening, Art.

Net household income – What is the take-home pay of your household (income after taxes and other deductions)?

US$40,000/year ($3,333.33/Month)

Sources of additional income (monthly and annual) – List any sources of income other than your salary.

Hobby, negligible amounts.

How would you describe your standard of living? – Based on the place you live in, your income, compared to other people around you…

Middle class, fortunate for what I have, always working to have better.

What is your approach to managing your finances? – What is your general approach or personal philosophy on managing your finances? Do you use a budget and if you do do you generally stick to it? How do you make financial decisions in your household?

Financial decisions are made mutually. Our budgeting consists of what our starting monthly amount is, subtracting our monthly necessity bills. Take that amount and decide how much goes to savings and want lists, entertainment, etc. Keep the savings for when a monthly cost exceeds starting monthly amount.

California Budgeting: How a Couple in Modesto, CA Manages Their Finances

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Let’s Break Down the Expenses

Now we’ll break down our respondent’s monthly household expenses into different budget categories.

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Subscriptions

$10
(0.3%)

* All figures are as reported by respondents. Totals may not add up to 100%.

We only included the categories in which this particular household has any monthly expenses. View the full list of budget categories we used for this survey, along with what’s included in each of those categories: 110 Budget Categories.

The post California Budgeting: How a Couple in Modesto, CA Manages Their Finances appeared first on FinMasters.

Did You Know?

• The average take-home salary in Romania in December 2020 was 3620 RON (Romanian Leu) or about 741€ or US$881.89 ^[2]. Salaries in some industries, notably IT, are significantly higher.
• Romania has a flat income tax rate of 16%. Social security contributions (pension, healthcare and unemployment) amount to to 15.5% for employees, and up to 32.6% for employers^[3].
• Romania has universal health coverage. Healthcare is officially free of charge, though some patients do incur out-of-pocket costs.
• Bucharest’s unemployment rate is only 0.8%, according to the European Commission.

What Does It Cost in Bucharest?

• 3-course meal for 2, mid-range restaurant: 150 lei (30.69€, US$36.46)
• Beef round, 1 kg: 34.91 lei (7.14€, US$8.51)
• Domestic beer .5 liter: 8 lei (1.64€, US$1.95)
• Broadband Internet: 40.51 lei/month (8.29€, US$9.87)
• Cinema. 1 seat: 30.00 lei (6.14€, US$7.31)
• Monthly public transport pass: 66 lei (13.50€, US$16.09)
• 3 bedroom apartment, city center: 3,611.99 lei/month (739.02€, US$880.31)

On the “Big Mac Index” Romania ranks 48th out of 56 countries surveyed, with the iconic burger costing the equivalent of US$2.47.

If you’re interested in budgeting but not sure where to start we’ve got you covered. Read our guides on how to start budgeting and choosing the right budgeting method.

Getting to Know the Household

We started our interview with some basic questions about the household, their lifestyle, and their approach to managing their finances.

Introduce yourself – Tell us a couple of things about yourself so we get to know you better.

33 years old, working in IT. My wife is an accountant and we have 2 children. We traveled abroad a few times per year, active social lives. Interested in history, programming, and personal finance.

Location – Where do you live (city, country)? What kind of place is it? How do you like living there?

Bucharest, Romania. Great place to live, there is a lot of room for improvement but if you compare the prices with western European cities it offers a great value for money.

Household structure – How many adults, kids, what ages?

2 adults, 2 kids (infant and 5-year-old)

Occupation – What do you and other adults in the household do for a living?

Software development
Accountant

Net household income – What is the take-home pay of your household (income after taxes and other deductions)?

4000€ (~4745 USD^[1])

Sources of income (monthly and annual) – List any sources of income other than your salary.

Investments (dividends + coupons). Just 2% in 2020. I plan to increase this every year.

How would you describe your standard of living? – Based on the place you live in, your income, compared to other people around you…

Very good. We can afford a few holidays abroad per year, monthly weekend trips, regularly order food, go out to restaurants and save money each month. I live in a nice neighborhood. Not too crowded, there are 3 parks nearby, 2 subway stations etc. Prices are much lower compared to western Europe.

What is your approach to managing your finances? – What is your general approach or personal philosophy on managing your finances? Do you use a budget, and if you do – do you generally stick to it? How do you make financial decisions in your household?

I used some mobile apps to see how I use my money but after 2 years I switched to Excel. I have designed the categories relevant to me and I also do some visualizations to compare budgets from one year to another.
I keep a budget. When I receive my paycheck I save 40%. This is the main goal I have. After that, I just check my Excel sheet to see if some categories went crazy.
Only important decisions are taken together, the kind of decisions that can impact our family long term

How a Family of Four From #Bucharest (Romania) Lives on 4,000 EUR per Month

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Let’s Break Down the Expenses

Now we’ll break down our respondent’s monthly household expenses into different budget categories.

Get notified when we publish the next post in this series by subscribing to our newsletter!

Housing

Utilities

Food

Transportation

Debt & loans

Kids

Clothing and personal care

Household supplies

Insurance

Healthcare

Entertainment

Subscriptions

Charity/Donations

Savings

* All figures are as reported by respondents. Totals may not add up to 100%.

We only included the categories in which this particular household has any monthly expenses. View the full list of budget categories we used for this survey, along with what’s included in each of those categories: 110 Budget Categories.

More Budgeting Around the World

Managing Money in Munich: How a Family of 3 Lives on 6,500€ per Month

Personal Finance in Ontario, Canada: How a Family of 3 Manages Their Money

Personal Finance in Chicago, USA: How One Student Lives on $30K-$40K/Year

Budgeting Down Under: We Talk Personal Finance With a Family of 3 in Brisbane, Australia

The post How a Family of 4 From Bucharest (Romania) Lives on 4,000 EUR/Month appeared first on FinMasters.

France is one of the core developed European economies, with a relatively high standard (and cost) of living. Strasbourg is a medium sized city with a strong industrial base including medical technology and pharmaceuticals, car manufacturing, and other industries, and hosts the European Parliament. The cost of living is about average for French cities, cheaper than Paris but more expensive than Marseille.

Did You Know

• The average take-home salary in Strasbourg is 3,352€ or US$4,013 per month^[1].
• France has a progressive income tax with rates ranging from 0% to 45%, plus surcharges on high-income taxpayers. Pension, health insurance, and unemployment insurance total around 20% of a worker’s wage^[2].
• French workers work an average of 35 hours a week and are not allowed to work more than 48 hours in a week.
• France has a mandatory universal health system providing full coverage to all citizens.
• Strasbourg’s unemployment rate is 10.4%, about average for France.^[3]

What Does it cost in Strasbourg?

• 3-course meal for 2, mid-range restaurant: 60€ (US$71.83)
• Beef round, 1 kg: 15.87€ (US$19.00)
• Domestic beer, .5 liter: 5€ (US$5.99)
• Broadband Internet: 35.25€ (US$42.20)
• Cinema, 1 seat: 10€ (US$11.97)
• Monthly public transport pass: 51.80€ (US$62.01)
• 3 bedroom apartment, city center: 1,272.50€/month (US$1,523.42)

On the “Big Mac Index,” Strasbourg, along with the rest of the Eurozone, ranks 7th out of 56 countries surveyed, with the iconic burger costing the equivalent of US$5.16.

If you’re interested in budgeting but not sure where to start we’ve got you covered. Read our guides on how to start budgeting and choosing the right budgeting method.

Getting to Know the Household

We started our interview with some basic questions about the household, lifestyle, and approach to managing their finances.

Introduce yourself – Tell us a couple of things about yourself so we get to know you better.

Woman, 45 years old. Back in France for 14 years after a first career (8 years) abroad (EU and US).

Location – Where do you live (city, country)? What kind of place is it? How do you like living there?

Strasbourg, France. Great city for low impact living.

Household structure – How many adults, kids, what ages?

Single, no kids.

Occupation – What do you and other adults in the household do for a living?

Land development.

Net household income – What is the take-home pay of your household (income after taxes and other deductions)?

6,493.50€ (US$7,774)/month

Sources of additional income (monthly and annual) – List any sources of income other than your salary.

• Gross salary: 73,150€ (US$87,574)
• Bonus: 6,465€ (US$7,740)
• Advantages through work (holiday vouchers, meal vouchers, car): 5,320€ (US$6,369)
• Real estate properties income: 33,625€ (US$40,255)
• Deductions of income taxes (salary + real estate returns) + CSG : 40,638€ (US$48,651)

How would you describe your standard of living? – Based on the place you live in, your income, compared to other people around you…

High. I feel very privileged and have the impression of never denying myself what makes me happy.

What is your approach to managing your finances? – What is your general approach or personal philosophy on managing your finances? Do you use a budget and if you do do you generally stick to it? How do you make financial decisions in your household?

I do not budget. But I am not a natural spender (I’ve always been a saver), and I do track my finances (expenses by categories, financial investments, real estate investments…). I have been doing it in details for 6 years now (and I’ve been tracking my net worth since 2007).

Budgeting in Strasbourg, France: How a Single Woman in Lives on 6,500 EUR per Month

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Let’s Break Down the Expenses

Now we’ll break down our respondent’s monthly household expenses into different budget categories.

Get notified when we publish the next post in this series by subscribing to our newsletter!

Housing

Utilities

Food

Transportation

Debt & loans

Clothing and personal care

Household supplies

Insurance

Healthcare

Entertainment

Subscriptions

Charity/Donations

Savings

Other

* All figures are as reported by respondents. Totals may not add up to 100%.

We only included the categories in which this particular household has any monthly expenses. View the full list of budget categories we used for this survey, along with what’s included in each of those categories: 110 Budget Categories.

More Budgeting Around the World

Managing Money in Munich: How a Family of 3 Lives on 6,500€ per Month

Personal Finance in Ontario, Canada: How a Family of 3 Manages Their Money

Personal Finance in Chicago, USA: How One Student Lives on $30K-$40K/Year

Budgeting Down Under: We Talk Personal Finance With a Family of 3 in Brisbane, Australia

The post Budgeting in Strasbourg, France: How a Single Woman Lives on 6,500€/Month appeared first on FinMasters.

Serbia is a landlocked state in the Balkan region of southeastern Europe. Like much of the former Soviet bloc, Serbia went through a period of dramatic economic change after the fall of the Soviet Union, and economic development was delayed by the conflicts that followed the breakup of the former Yugoslavia. Today’s Serbian economy has attracted significant investment in manufacturing, though agriculture still employs 15% of the workforce, primarily producing fruits and grains.^[1] Per capita GDP ranks 38th out of 44 European countries.^[2] The cost of living is also among the lowest in Europe, ranking 35th out of 40 European countries in the Numbeo.com cost of living index.^[3]

Did You Know

• The average take-home salary in Serbia is 1,044,696RSD (US$10,674)/year or 87,058RSD/month (US$890)^[4].
• Serbian income tax rates range from 10% to 20%, with a supplementary tax on individuals above a specified income threshold^[5].
• Serbian employees contribute 36.5% of their salaries to a Social Security system that provides health insurance, pensions, and unemployment insurance.^[6]
• All Serbian citizens and permanent residents are covered by the National Health Insurance fund and make mandatory contributions to the fund.
• Serbia’s unemployment rate in 2020 was 12.72%.^[7]

What Does it Cost in Belgrade?

• 3-course meal for 2, mid-range restaurant: 3,000RSD (US$30.65)
• Beef round, 1 kg: 773.62RSD (US$7.90)
• Domestic beer, .5 liter: 200RSD (US$2)
• Broadband Internet: 2,462.78RSD (US$25)
• Cinema, 1 seat: 500.00RSD  (US$5.11)
• Monthly public transport pass: 3,275.00RSD (US$33.46)
• 3 bedroom apartment, city center: 76,977.28RSD/month (US$786.52)

On the “Big Mac Index” Serbia ranks among the less expensive economies, between Ukraine and Azerbaijan, with the iconic burger costing the equivalent of US$2.08.

If you’re interested in budgeting but not sure where to start we’ve got you covered. Read our guides on how to start budgeting and choosing the right budgeting method.

Getting to Know the Household

We started our interview with some basic questions about the household, their lifestyle, and their approach to managing their finances.

Introduce yourself – Tell us a couple of things about yourself so we get to know you better.

Male, 36, Belgrade, Serbia, I run a skilled trade business, married, father of two.

Location – Where do you live (city, country)? What kind of place is it? How do you like living there?

Belgrade, Serbia. It is the capital of Serbia, with around 2 million people, very busy, polluted, mismanaged… Currently being gentrified in a horrible way.

Household structure – How many adults, kids, what ages?

2 adults, 37 and 36, 2 kids, 6 and a 5 month old baby.

Occupation – What do you and other adults in the household do for a living?

I run my own small business, my wife works at the Post Office.

Net household income – What is the take-home pay of your household (income after taxes and other deductions)?

190,000RSD (U$1941)/month on average. My wife is getting 35,000RSD (US$358) during her maternity leave; normally she would earn 40,000RSD (US$409). My business income varies month to month.

How would you describe your standard of living? – Based on the place you live in, your income, compared to other people around you…

Decent

What is your approach to managing your finances? – What is your general approach or personal philosophy on managing your finances? Do you use a budget and if you do do you generally stick to it? How do you make financial decisions in your household?

First You pay the bills and the mortgage then you spend what is left. We do not use a budget, if we have some unexpected expenses we use the money we saved up. We make the decisions together.

Budgeting in Belgrade: The Personal Finances of a Family in Serbia

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Let’s Break Down the Expenses

Now we’ll break down our respondent’s monthly household expenses into different budget categories.

Get notified when we publish the next post in this series by subscribing to our newsletter!

Housing

. Utilities

Food

Transportation

Kids

Clothing and personal care

Household supplies

Pets

Insurance

Healthcare

Entertainment

Subscriptions

Savings

Other

* All figures are as reported by respondents. Totals may not add up to 100%.

We only included the categories in which this particular household has any monthly expenses. View the full list of budget categories we used for this survey, along with what’s included in each of those categories: 110 Budget Categories.

The post Budgeting in Belgrade: The Personal Finances of a Family in Serbia appeared first on FinMasters.

Lausanne is a picturesque lakeside town with an extremely high standard of living and quality of life. Many of the largest commercial banks and corporations in Switzerland have their headquarters in Lausanne, and the city hosts two of Europe’s most highly regarded universities. Export manufacturing and information are also prominent industries in Lausanne. The high standard of living comes at a price: Lausanne’s cost of living is among Europe’s highest, just behind Zurich and substantially higher than costs in Paris, London, or Berlin.

Did You Know

• The average take-home salary in Lausanne, Switzerland is CHF 89,065 (US$98,093)/year^[1], or CHF 7,422 (US$8,174)/month.
• Swiss federal income taxes are relatively low, with a maximum 11.5% tax rate in the highest tax brackets^[2]. Social Security, health insurance, and other contributions are deducted at the source. Deductions reach 25% of the average paycheck.[1]
• The unemployment rate in Switzerland is consistently low and remained under 4% even at the peak of the COVID-19 pandemic. It’s currently 3.6%[3].
• Switzerland has a private but heavily regulated health insurance system with mandatory coverage. Basic health insurance premiums average CHF 350 (US$385) for an adult and annual out-of-pocket healthcare expenses average CHF 1300 (US$1,431)/year ^[4].

What Does it Cost in Lausanne, Switzerland?

• 3-course meal for 2, mid-range restaurant: CHF 115 (US$127)
• Beef round, 1 kg: CHF 53.83 (US$59.29)
• Domestic beer, .5 liter: CHF 8 (US$8.81)
• Broadband Internet: CHF 59.86 (US$65.93)
• Cinema, 1 seat: CHF 20 (C$22.03)
• Monthly public transport pass: CHF 74 (US$81.5)
• 3 bedroom apartment, city center: CHF 2,985/month (US$3,288)

On the “Big Mac Index” Switzerland is the most expensive of 56 countries surveyed, with the iconic burger costing the equivalent of US$7.29.

If you’re interested in budgeting but not sure where to start we’ve got you covered. Read our guides on how to start budgeting and choosing the right budgeting method.

Getting to Know the Household

We started our interview with some basic questions about the household, their lifestyle, and their approach to managing their finances.

Introduce yourself – Tell us a couple of things about yourself so we get to know you better.

I am a 26-year-old Information Sciences student living with my girlfriend in Lausanne. I work and study part-time.

Location – Where do you live (city, country)? What kind of place is it? How do you like living there?

I live in Lausanne, Switzerland. It’s a large city in Switzerland with 2 great universities (University of Lausanne (UNIL) and the Federal polytechnical school of Lausanne (EPFL)) situated on the shore of the lake of Geneva.

Household structure – How many adults, kids, what ages?

2 adults

Occupation – What do you and other adults in the household do for a living?

I am an Information Sciences student and work part-time as a software engineer. My girlfriend is an architect.

Net household income – What is the take-home pay of your household (income after taxes and other deductions)?

6,500 Swiss Francs per month (US$7,159)

How would you describe your standard of living? – Based on the place you live in, your income, compared to other people around you…

Transitional between student and working adult. We have a slightly higher living standard than most of our friends and colleagues.

What is your approach to managing your finances? – What is your general approach or personal philosophy on managing your finances? Do you use a budget and if you do do you generally stick to it? How do you make financial decisions in your household?

We have been living together for 5 months now and have not yet defined a budget. We have been tracking our expenses though and we usually spend about CHF 1000 (US$1,101) on food. Food is definitely the biggest expense. This is due to the price of food in Switzerland which is abnormally high.

Household Budgeting in Lausanne, Switzerland: One Couple's Experience

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Let’s Break Down the Expenses

Now we’ll break down our respondent’s monthly household expenses into different budget categories.

Get notified when we publish the next post in this series by subscribing to our newsletter!

Housing

Utilities

Food

Transportation

Clothing and personal care

Household supplies

Insurance

Healthcare

Entertainment

Subscriptions

Charity/Donations

Savings

Other

* All figures are as reported by respondents. Totals may not add up to 100%.

We only included the categories in which this particular household has any monthly expenses. View the full list of budget categories we used for this survey, along with what’s included in each of those categories: 110 Budget Categories.

The post Household Budgeting in Lausanne, Switzerland: One Couple’s Experience appeared first on FinMasters.

Stuttgart is noted for both its economic prosperity and its quality of life. Automotive, engineering, IT, nanotech, and environmental technology industries supply the economic punch, while the verdant surrounding countryside, numerous creative industries, and a park-like atmosphere keep life calm. Stuttgart offers an exceptional quality of life and great value: the cost of living is around average for German cities, and Germany as a whole ranks 14th in Europe for the cost of living.

Did You Know

• The average take-home salary in Stuttgart is 3,411.75€ (US$4,116) per month^[1].
• A 2017 survey concluded that Stuttgart is the world’s least stressful city.^[2]
• Germany has a progressive income tax, with rates from 0% for people with incomes under 9,408€ (US$11,350) for a single taxpayer to 45% for a single taxpayer with an income of 270,000€ (US$325,739) or above.[3]
• Health insurance, pension insurance, unemployment insurance, and nursing care insurance total almost 40% of a worker’s wage, paid half by the worker and half by the employer^[4].
• Stuttgart’s unemployment rate is under 4%, below the German average.^[5]

What Does it Cost in Stuttgart?

• 3-course meal for 2, mid-range restaurant: 60€ (US$72)
• Beef round, 1 kg: 11.24€ (US$13.56)
• Domestic beer, .5 liter: 3.80€ (US$4.58)
• Broadband Internet: 27.96€ (US$33.73)
• Cinema, 1 seat: 10€ (US$12.06)
• Monthly public transport pass: 67.60€ (US$81.56)
• 3 bedroom apartment, city center: 1,719.05€/month (US$2,074)

On the “Big Mac Index” Stuttgart, along with the rest of the Eurozone, ranks 7th out of 56 countries surveyed, with the iconic burger costing the equivalent of US$5.16.

If you’re interested in budgeting but not sure where to start we’ve got you covered. Read our guides on how to start budgeting and choosing the right budgeting method.

Getting to Know the Household

We started our interview with some basic questions about the household, their lifestyle, and their approach to managing their finances.

Location – Where do you live (city, country)? What kind of place is it? How do you like living there?

Village near Stuttgart, Germany.

Household structure – How many adults, kids, what ages?

Single.

Occupation – What do you and other adults in the household do for a living?

IT.

Net household income – What is the take-home pay of your household (income after taxes and other deductions)?

3,600.00€/month (US$4,343)

Sources of additional income (monthly and annual) – List any sources of income other than your salary.

Corporate job

How would you describe your standard of living? – Based on the place you live in, your income, compared to other people around you…

Simple but not problematic.

What is your approach to managing your finances? – What is your general approach or personal philosophy on managing your finances? Do you use a budget and if you do do you generally stick to it? How do you make financial decisions in your household?

I try to save a lot otherwise I don’t budget.

Simple in Stuttgart: How a Single German Manages Money

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Let’s Break Down the Expenses

Now we’ll break down our respondent’s monthly household expenses into different budget categories.

Get notified when we publish the next post in this series by subscribing to our newsletter!

Housing

Utilities

Food

Transportation

Household supplies

. Savings

Other

* All figures are as reported by respondents. Totals may not add up to 100%.

We only included the categories in which this particular household has any monthly expenses. View the full list of budget categories we used for this survey, along with what’s included in each of those categories: 110 Budget Categories.

The post Simple in Stuttgart: How a Single German Manages Money appeared first on FinMasters.

Estonia is a small state along the Baltic Sea, and since its independence from the Soviet Union, it has emerged as a modern, highly competitive economy. There’s a strong export sector, with Sweden and Finland as top partners and an active service sector. Estonia is a European leader in online services, with almost all government services accessible over the Internet. Despite its modern economy, the cost of living remains relatively low. On the Numbeo.com cost of living index, Estonia ranks 20th out of 40 European economies, between Portugal and Slovenia.^[1]

Did You Know

• The average annual take-home salary in Estonia is 26,027€ or US$31,848.^[2]
• Estonia has a 20% flat income tax rate.^[3]
• Estonian employers pay for the employee’s health insurance and most pension and unemployment insurance. Small percentages are deducted from salaries for additional pension and unemployment insurance.^[4]
• Estonia’s employer-funded Social Health Insurance program covers 95% of the population, with the remaining 5% opting for private insurance^.[5]
• Estonia’s unemployment rate for 2020 was 5.38%.^[6]
• Estonia’s government debt is 18.5% of GDP, the lowest in Europe.^[7]

What Does it Cost in Estonia?

• 3-course meal for 2, mid-range restaurant: 45€ (US$55)
• Beef round, 1 kg: 9.04€ (US$11.06)
• Domestic beer, .5 liter: 3.62€ (US$4.43)
• Broadband Internet: 23.52€ (US$28.78)
• Cinema, 1 seat: 7€ (US$8.57)
• Monthly public transport pass: 24€ (US$29.37)
• 3 bedroom apartment, city center: 702.59€/month (US$860)

On the “Big Mac Index” Estonia is approximately equal to Denmark and between Australia and New Zealand, with the iconic burger costing the equivalent of US$4.92.

If you’re interested in budgeting but not sure where to start we’ve got you covered. Read our guides on how to start budgeting and choosing the right budgeting method.

Getting to Know the Household

We started our interview with some basic questions about the household, their lifestyle, and their approach to managing their finances.

Introduce yourself – Tell us a couple of things about yourself so we get to know you better.

Not willing to share much, but I am a woman – 27. Person of Colour in a majority white country.

Location – Where do you live (city, country)? What kind of place is it? How do you like living there?

Estonia – Largely Estonian and Russian. Some foreigners but very small population. I like living here, it’s cozy.

Household structure – How many adults, kids, what ages?

My BF lives with me. He is also 27. We have two cats. I am renting.

Occupation – What do you and other adults in the household do for a living?

I am a support manager in a small investment fund company. BF is a freelancer. He does not contribute to my rent and I do not intend to involve him in any kind of asset ownership. I only allow him to contribute to grocery expenses.

Net household income – What is the take-home pay of your household (income after taxes and other deductions)?

21,000€ after tax (US$25,697) or 1800€ (US$2,203) per month.

How would you describe your standard of living? – Based on the place you live in, your income, compared to other people around you…

Middle class. Above average.

What is your approach to managing your finances? – What is your general approach or personal philosophy on managing your finances? Do you use a budget and if you do do you generally stick to it? How do you make financial decisions in your household?

I am currently saving most of my money and not investing because I intend to buy an apartment within the next two years. So I need that down payment. I stick to my budget every month. I am also contributing to my voluntary pensions from my tax breaks.

Personal Finance in Estonia: How a Young Woman Manages Money on 26,027€ a Year

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Let’s Break Down the Expenses

Now we’ll break down our respondent’s monthly household expenses into different budget categories.

Get notified when we publish the next post in this series by subscribing to our newsletter!

Housing

Utilities

Food

Transportation

Household supplies

Pets

Healthcare

Charity/Donations

Savings

* All figures are as reported by respondents. Totals may not add up to 100%.

We only included the categories in which this particular household has any monthly expenses. View the full list of budget categories we used for this survey, along with what’s included in each of those categories: 110 Budget Categories.

The post Personal Finance in Estonia: How a Young Woman Manages Money on 26,027€ a Year appeared first on FinMasters.

Leicester is a university town in the midlands of England. The population is around 300,000, and around 35,000 of those are students at the city’s two major universities.^[1] The universities are also major employers, with textiles, footwear, and engineering also contributing to the economy. The high student population contributes to a relatively low cost of living, and Leicester is considered one of the most affordable cities for students in England.^[2]

Did You Know

• The average take home salary in Leicester, England is GBP26,000 (US$36,868)/year^[3], or GBP2,166.67 (US$3,072)/month.
• English income taxes exempt individuals with less than GBP12,570 (US$17,824) in annual income. People with higher incomes pay from 20% up to 45%, with the 45% rate affecting only those with over GBP150,000 (US$212,702) in annual income.^[4]
• England has a national insurance system that covers health, pension, and maternity benefits. Employees pay 12% of earnings above GBP184 (US$261)/week, dropping to 2% of earnings above GBP968 (US$1,373)/week.^[5]
• The unemployment rate in Leicester is 5.5%%.^[6]

What Does it Cost in Leicester, England?

• 3-course meal for 2, mid-range restaurant: GBP45.00 (US$64)
• Beef round, 1 kg: GBP 8.22 (US$11.66)
• Domestic beer, .5 liter: GBP3.20 (US$4.54)
• Broadband Internet: GBP 30.40 (US$43.11)
• Cinema, 1 seat: GBP 8.55 (C$12.12)
• Monthly public transport pass: GBP56.00 (US$79.41)
• 3 bedroom apartment, city center: GBP942.86/month (US$1,337)

On the “Big Mac Index” Great Britain is the 12th most expensive of 56 countries surveyed, with the iconic burger costing the equivalent of US$7.29.

If you’re interested in budgeting but not sure where to start we’ve got you covered. Read our guides on how to start budgeting and choosing the right budgeting method.

Getting to Know the Household

We started our interview with some basic questions about the household, their lifestyle, and their approach to managing their finances.

Introduce yourself – Tell us a couple of things about yourself so we get to know you better.

Mexican-American female, 26 years old. Have experienced relative poverty, have had depression, anxiety, eating disorders.

Location – Where do you live (city, country)? What kind of place is it? How do you like living there?

Leicester, UK. Moved from the USA to study. Live in a studio, horrible landlords.

Household structure – How many adults, kids, what ages?

2 adults.

Occupation – What do you and other adults in the household do for a living?

Student/waitress/furlough unemployed.

Net household income – What is the take-home pay of your household (income after taxes and other deductions)?

600 GBP per month (US$851).

How would you describe your standard of living? – Based on the place you live in, your income, compared to other people around you…

Lower class.

What is your approach to managing your finances? – What is your general approach or personal philosophy on managing your finances? Do you use a budget and if you do do you generally stick to it? How do you make financial decisions in your household?

Track spending with Excel. Minimalism with a budget plan.

Living in Leicester: How a Low-Income Student Survives in Leicester, England

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Let’s Break Down the Expenses

Now we’ll break down our respondent’s monthly household expenses into different budget categories.

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Housing

Utilities

Food

Transportation

Debt & loans

Clothing and personal care

Household supplies

Subscriptions

* All figures are as reported by respondents. Totals may not add up to 100%.

We only included the categories in which this particular household has any monthly expenses. View the full list of budget categories we used for this survey, along with what’s included in each of those categories: 110 Budget Categories.

The post Living in Leicester: How a Low-Income Student Survives in Leicester, England appeared first on FinMasters.

Canada is a highly developed nation with abundant resources and a relatively small population. It has a modern economy and a high level of social services. London, Ontario, is a medium-sized city with a population of just over 500,000. It’s a fast-growing city with a diverse population. The economy is also diversified, with agriculture/food industries, high-tech manufacturing, IT, and health all generating significant employment. The cost of living is lower than comparable costs in nearby Canadian cities, with prices (including rent) around 20% lower than those in nearby Toronto^[1] and 10% lower than Ottawa^[2].

Did You Know

• The average salary in London, Ontario is C$65,872 (US$52,335)/year^[3], for a take-home pay of approximately C$49,620 (US$39,423)^[4] or C$4,135 (US$3,285)/month.
• Canada has a progressive income tax with combined federal and provincial tax rates ranging from 15% to 33%^[5]. Pension and employment insurance contributions are also deducted, with total deductions reaching 25% of an average worker’s salary.
• Canada has a universal publicly funded healthcare system.
• The unemployment rate in London, Ontario is 13.1% (in February/March 2021)^[6].

What Does it cost in London, Ontario?

• 3-course meal for 2, mid-range restaurant: C$80 (US$63.56)
• Beef round, 1 kg: C$15.69 (US$12.47)
• Domestic beer, .5 liter: C$6 (US$4.77)
• Broadband Internet: C$73.65 (US$58.52)
• Cinema, 1 seat: C$7.93 (US$6.30)
• Monthly public transport pass: C$85 (US$67.53)
• 3 bedroom apartment, city center: C$2,212.50/month (US$1,758)

On the “Big Mac Index” Canada ranks 6th out of 56 countries surveyed, with the iconic burger costing the equivalent of US$5.29.

If you’re interested in budgeting but not sure where to start we’ve got you covered. Read our guides on how to start budgeting and choosing the right budgeting method.

Getting to Know the Household

We started our interview with some basic questions about the household, their lifestyle, and their approach to managing their finances.

Introduce yourself – Tell us a couple of things about yourself so we get to know you better.

Married, parent of 1, business owner, investor, lender.

Location – Where do you live (city, country)? What kind of place is it? How do you like living there?

London, Ontario, Canada.

Household structure – How many adults, kids, what ages?

2 adults (36, 37), 1 child (10).

Occupation – What do you and other adults in the household do for a living?

Business owner. Single income.

Net household income – What is the take-home pay of your household (income after taxes and other deductions)?

250k (US$198,626) gross. Closer to 200k (US$158,901) net. Income is split among different entities within my structure.

Sources of additional income (monthly and annual) – List any sources of income other than your salary.

Business income, rental property income, private lending income.

How would you describe your standard of living? – Based on the place you live in, your income, compared to other people around you…

High standard of living. I can splurge on big ticket items comfortably.

What is your approach to managing your finances? – What is your general approach or personal philosophy on managing your finances? Do you use a budget, and if you do – do you generally stick to it? How do you make financial decisions in your household?

No budget. I pay my savings first. Always.
I funnel all income into paying down my HELOCs for reinvestment, keeping only a small amount for necessary expenses.

Personal Finance in London, Ontario: How a Family of 3 Manages Their Money

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Let’s Break Down the Expenses

Now we’ll break down our respondent’s monthly household expenses into different budget categories.

Get notified when we publish the next post in this series by subscribing to our newsletter!

Housing

Utilities

Food

Transportation

Debt & loans

Kids

Clothing and personal care

Household supplies

Pets

Insurance

Healthcare

Entertainment

Subscriptions

Charity/Donations

Savings

* All figures are as reported by respondents. Totals may not add up to 100%.

We only included the categories in which this particular household has any monthly expenses. View the full list of budget categories we used for this survey, along with what’s included in each of those categories: 110 Budget Categories.

More Budgeting Around the World

Managing Money in Munich: How a Family of 3 Lives on 6,500€ per Month

Personal Finance in Chicago, USA: How One Student Lives on $30K-$40K/Year

Budgeting Down Under: We Talk Personal Finance With a Family of 3 in Brisbane, Australia

How a Family of 4 From Bucharest (Romania) Lives on 4,000 EUR/Month

The post Personal Finance in Ontario, Canada: How a Family of 3 Manages Their Money appeared first on FinMasters.

Germany has one of the world’s most developed economies, and Munich is a vibrant city with world-class infrastructure and a diversified industrial, technological, and service economy. Services are excellent, and wages are well above European averages, but living costs are also relatively high. Munich scores 82.01 on the Numbeo.com cost of living index^[1], placing it among the more expensive European cities, higher than Berlin and only slightly below London.

Did You Know

• The average take-home salary in Munich is 3,549€ or US$4,161^[2].
• Germany has a progressive income tax with rates ranging from 0% to 45%. The highest rate applies to taxpayers earning over 270,500€ (US$317,166). Pension, health insurance, and unemployment insurance total around 40% of a worker’s wage, split evenly between the employer and the employee^[3].
• Germany has universal health coverage. The statutory health insurance package covers most medical situations. Additional charges may be imposed for some services but are usually capped at 10€/day for services and 2% of annual income for medications.^[4]
• Munich’s unemployment rate is 3.3%, the lowest in Germany.^[5]

What Does it Cost in Munich?

• 3-course meal for 2, mid-range restaurant: 60€ (US$70.12)
• Beef round, 1 kg: 14.73€ (US$17.27)
• Domestic beer, .5 liter: 4€ (US$4.69)
• Broadband Internet: 35.78€ (US$41.95)
• Cinema, 1 seat: 12€ (US$14.07)
• Monthly public transport pass: 56€ (US$65.66)
• 3 bedroom apartment, city center: 2,291.28€/month (US$2,686.57)

On the “Big Mac Index” Germany, along with the rest of the Eurozone, ranks 7th out of 56 countries surveyed, with the iconic burger costing the equivalent of US$5.16.

If you’re interested in budgeting but not sure where to start we’ve got you covered. Read our guides on how to start budgeting and choosing the right budgeting method.

Getting to Know the Household

We started our interview with some basic questions about the household, their lifestyle, and their approach to managing their finances.

Introduce yourself – Tell us a couple of things about yourself so we get to know you better.

Mid 30s male.

Location – Where do you live (city, country)? What kind of place is it? How do you like living there?

Munich, Germany. It’s a nice place to live.

Household structure – How many adults, kids, what ages?

2 adults (mid 30s), 1 child < 1

Occupation – What do you and other adults in the household do for a living?

Software developer
Architect

Net household income – What is the take-home pay of your household (income after taxes and other deductions)?

6,500€ (US$7,621)

Sources of additional income (monthly and annual) – List any sources of income other than your salary.

Stocks

How would you describe your standard of living? – Based on the place you live in, your income, compared to other people around you…

Middle class

What is your approach to managing your finances? – What is your general approach or personal philosophy on managing your finances? Do you use a budget and if you do do you generally stick to it? How do you make financial decisions in your household?

I do not use a budget, but pay the bills and put aside a fixed sum every month.

Managing Money in #Munich: How a Family of 3 Lives on 6,500€ per Month

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Let’s Break Down the Expenses

Now we’ll break down our respondent’s monthly household expenses into different budget categories.

Get notified when we publish the next post in this series by subscribing to our newsletter!

Housing

Utilities

Food

Transportation

Kids

Clothing and personal care

Household supplies

Insurance

Entertainment

Subscriptions

Charity/Donations

Savings

* All figures are as reported by respondents. Totals may not add up to 100%.

We only included the categories in which this particular household has any monthly expenses. View the full list of budget categories we used for this survey, along with what’s included in each of those categories: 110 Budget Categories.

More Budgeting Around the World

Personal Finance in Ontario, Canada: How a Family of 3 Manages Their Money

Personal Finance in Chicago, USA: How One Student Lives on $30K-$40K/Year

Budgeting Down Under: We Talk Personal Finance With a Family of 3 in Brisbane, Australia

How a Family of 4 From Bucharest (Romania) Lives on 4,000 EUR/Month

The post Managing Money in Munich: How a Family of 3 Lives on 6,500€ per Month appeared first on FinMasters.