Simple in Stuttgart: How a Single German Manages Money

How do you manage your money? We all have our own style. There are dozens of established methods and many people blend them to come up with their own preferred blend. We’re looking at how people manage money in different places and with different family situations, to give you some ideas about how other people handle their money. In this installment, we’ll look at the financial life of a single worker in Stuttgart, Germany.

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.

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

🧹 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.