Recurring expenses

Fighting recurring expenses

Keeping your personal costs under control is as important as investing in the right stocks. Recurring expense is the enemy of passive income. It makes you financially inflexible. It chains you to your current job, to your current environement and sometimes to friends that you dont like. You think you can’t change it but you can! Check below recurring expenses that can be easily stopped and tips to improve your monthly income:


  • Don’t spend more than 25% of your current income for rent
  • Never buy a car (except you need it for work); if you do, never buy a new car
  • Never buy a mobile phone in a bundle with a contract; buy the phone and the contract each; don’t spend more than 15 EUR p.m. (all-net flats are that cheap)
  • Don’t pay for your bank account and depot; use online brokers or banks
  • Don’t buy household goods in local stores spontaneously
  • Stop paying yearly / recurring fees for memberships, its just not yielding out
  • Stop paying for magazines / subscription models
  • Stop paying for gym (except you can afford it); do sports outside or at home
  • Stop having coffee and snacks in between
  • Stop drinking alcohol just because everybody else does; safe some bucks while eating fresh and healthy, preferably at home (instead of going dining)


  • Use online price comparison tools and check for the cheapest price; buy online
  • Check your insurances and use online comparison to make changes if necessary
  • Do your annual tax declaration; save and file all invoices and bills for year end; its worth it, always! Electronic tax filing programs can be bought at discount after half of the current tax year

Exemplary saving potential

Car 400 EUR p.m. (all-in); Mobile EUR 25 p.m.; Bank EUR 5 p.m.; Membership fees EUR 3 p.m.; Gym EUR 50 p.m.; Coffee & Snacks EUR 50 p.m.; Magazines EUR 3 p.m.; Tax declaration: EUR 20 p.m.; Alcohol EUR 30 p.m.; Food EUR 20; (exkl. Rent and insurances).:

That is EUR 606 monthly savings! Even without a car, you can easily safe more than EUR 200 a month. That income can be employed month by month to become financially independent.

Another  article (in German) worth reading you find here at

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