13 Sep 2024
Many foreigners, including those from Nepal, find Germany appealing because of its robust economy, top-notch educational system, and wide range of employment options. However, living abroad might help provide financial challenges, particularly when balancing a budget and providing for family back home. With advice on how to send money to Nepal from Germany, this guide intends to assist Nepalese expats living in Germany in managing their finances.
The cost of living in Germany differs depending on where one lives or intends to live. A few of the biggest cities, such as Berlin, Munich, and Frankfurt, are typically more expensive than the other cities in Germany. It is estimated that a single individual might require €850 to €1200 a month to meet minimum expenditures such as accommodation, food, transport, and insurance.
Rent is commonly the most significant expenditure an average expatriate can incur. In the case of one-bedroom apartments, the rent can range between €600 – €1000 in bigger towns and cities and between €400 – €700 in smaller towns and cities. Sharing rooms when traveling in groups might help minimize this cost.
The cost of groceries in Germany is still rather low, especially if you shop around and purchase from supermarkets and stores such as Aldi, Lidl, or Netto. Groceries and food expenses vary depending on the person, and one might spend about €150 to €250 shopping for food monthly.
Germany has efficient public transportation; thus, a monthly pass ranges between €60 to €100 depending on the city. Cycling is also an effective and affordable means of transport and is widely used in student cities.
Being a mandatory requirement for workers in Germany, health insurance is crucial in the country. The cost may vary depending on your income and whether you want public or private insurance; the price will range from €100 to €400 a month. Moreover, voluntary personal accident insurance (Zusatzunfallversicherung) and liability insurance (Haftpflichtversicherung) are obligatory and cost between €5 to €10 per month.
As a Nepalese living and studying or working in Germany, one must appropriately manage the financial aspect of his or her life. Here are some expanded budgeting tips to help you maximize your savings while enjoying life in a new country:
A budget is the primary guide to controlling an organization's financial resources. You must begin with a reasonable budget to send money online to Nepal from Germany. Next, enter all your income sources, such as your salary, side hustle income, or student stipend. Then, divide your expenditure into rent, electricity, water, food, travel, etc.
Keep a record of all your expenditures to get an idea of how much you are spending. Use budgeting apps such as Mint and You Need A Budget (YNAB). This way, you’ll always know you are paying too much in specific categories and can make the correct adjustments.
Several discount cards and loyalty programs in Germany can save you a lot of money on daily necessities. For example, the BahnCard offers significant benefits by providing great offers on the train, and individuals using this card for traveling through the country often do so through trains. If you are a student, do not forget to acquire a student ID for discounts on the necessary foods, clothing, movies, and transport.
Eating at restaurants in Germany, particularly in modern cities such as Berlin, Munich, or Frankfurt, might be fairly costly. Cooking at home also means spending less, and nutrient control is in your hands; therefore, it is better for our health. Try to plan for the week's meals in advance, then go shopping with the scheduled items.
One should consider purchasing in large quantities or going to farmer markets that offer cheaper prices for fresh foods. Pre-cooking also helps, as it eliminates the chance of not having food prepared at home and being forced to order fast food. You can also discover recipes with traditional Nepalese foods and cuisine to make your kitchen work again.
This aspect of the budgetization process shows the need to make savings a ‘line item’ that cannot be eliminated. It's important to try to save as much as a least 10-15% of your monthly income. Suggest establishing an ATM to another account immediately after payday has been paid to enable you to avoid the temptation to spend the money. This money has the flexibility to use it as rainy day funds or even to invest for further studies or even to buy property back home by making a money transfer from Germany to Nepal.
Germany has a highly developed culture, history, and nature, which means there are many free or minimal-cost options. Some art museums and galleries have free days or days where students or families can get in at cheaper prices. Playgrounds, museums, art galleries, and food festivals are other recommendations for filling several days with excitement while cutting back on expenses.
Life is full of surprises, i.e., some moments help one to be happy, while others can affect one’s wallet. It could be an illness that requires one to be hospitalized, loss of job, or the need to send cash back home. Staying prepared can help one go through these challenging times. Here are some strategies to help you manage unexpected expenses without compromising your financial stability:
A good possibility of protecting yourself against such risks is by establishing a strong defense mechanism in the form of an emergency fund. It is recommended that one should strive to set aside enough money to allow for 3-6 months’ worth of expenses. This fund should be deposited in a separate ‘rainy day’ savings account, which should be separate from your operating account.
Insurance is a vital tool for managing financial risks and ensuring financial security. While health insurance is essential, you should also consider other types of insurance, especially if you frequently make money transfers from Germany to Nepal or travel there. Income protection insurance can provide a safety net if you're unable to work due to illness or injury.
Balancing such expenses might be rather complex, let alone situations that require making large-scale decisions. Consulting with a financial expert is essential since they help make sound financial decisions.
Financial advisors might seem relevant in making decisions about how best to save, invest, and manage debts, depending on your needs. Historically, banking institutions in Germany have offered their financial planning services for free or at a one-time fee, making it possible for a budget-conscious person to afford them.
Read more: Effective Methods for Achieving Best Exchange Rates on Nepal-bound Remittances
Every Nepalese expatriate living in Germany must know his duties, specifically, his tax duties, both in German and Nepalese contexts. Generally, Germans have a progressive tax, meaning that the tax you pay depends on your wages. Also, Germany and Nepal have signed a treaty for double taxation, thus preventing you from being taxed on the same source of income in the two countries.
For individuals with income, you can be sure to pay anything between 14% and 45% as income tax. Be sure to pay your taxes when they are due to avoid paying a fine for late filing.
The money you remit to family and friends in Nepal may not levy the taxes in Germany. However, you should maintain records of your transfers since they might be useful when filing taxes.
Germany allows some forms of tax relief like health insurance, donations, and childcare expenses. Make yourself acquainted with these benefits that will help to cut your taxable income.
Residence in Germany provides Nepalese a good chance to build a sound financial future. Another way of transferring the money back to the home country, Nepal, is by using an instant money transfer from Germany to Nepal. Through this service, you are able to transfer money directly to loved ones in Nepal, making the transfer secure and on time. In addition to utilizing instant money transfers, consider these steps to build a solid financial foundation:
There is a reason to continue education or get better qualifications to receive a job offer and get paid more in Germany. Today, many employers provide programs for professional development, and many schools offer part-time classes.
It is also important to make arrangements for when you are likely to retire, so before that time you should begin preparing. Germany has an excellent pension plan; however, it shall also be beneficial to seek other methods of saving for retirement, for instance, through private pension plans or even shares and bonds.
It is, however, important to know that if you intend to live in Germany in the long run, then it may be wise to purchase a house. The prices for properties have been on the rise in Germany, and real estate can also be a good source of income as a kind of investment.
Try to read the financial newspapers and magazines as often as possible to know what is happening in German and Nepalese economies. With this knowledge, you will be able to make better decisions about finances. It would be either the right time to send money to Nepal from Germany or which investments to do.
Helping out families back in Nepal is often a great concern for Nepalese living abroad. But this comes with some cost if it is done in the wrong way.
One of the companies that provides better exchange rates and lower costs than banks is ACE Money Transfer. These services are fast and secure and enable you to send money to Nepal online from Germany through the Internet within a few clicks.
Even though bank transfers are known to be safe, they are generally costly and offer unfavorable exchange rates. Nevertheless, certain financial institutions may work with Nepali banks, under which the fees for remittances from Germany to Nepal will be lower.
Some of the online transfer services let you transfer funds directly to these mobile wallets, which makes it convenient for your beneficiaries.
Whenever you need to make an international transfer, it is essential to compare the fees and rates provided by different service providers. This reveals how a slight movement in the exchange rate can make a huge difference in the amount received in Nepal.
The conversion rates for Euro to Nepali Rupees change frequently; therefore, it would be best if your family could be more flexible with the time of transfer to get the most amount in NRs.
For a Nepalese person living in Germany, it is challenging to live on a particular budget due to differences in economy and culture. Knowing the cost of living and necessities, planning a budget, and understanding the best ways to make online money transfer from Germany to Nepal will help one meet his/her financial responsibilities and provide for the needs of the families and friends at home. What is important to understand is that each Euro that is either saved or used effectively makes you and your family’s future more secure and prosperous.
Looking into cheap housing choices is a common part of living on a tight budget as an expat Nepalese in Germany. Smaller cities, shared flats, and dorms for students may be more affordable options than bigger ones.
In addition to local newspapers and social media groups, internet resources such as Immobilienscout24 and WG-Gesucht can be used to find inexpensive homes in Germany.
When traveling in Germany, taking public transportation like buses, trains, and trams is usually the most economical option. To save a substantial amount of money, think about getting monthly or yearly passes. Another cost-free and healthy alternative is cycling.
When traveling in Germany, taking public transportation like buses, trains, and trams is usually the most economical option. To save a substantial amount of money, think about getting monthly or yearly passes. Another cost-free and healthy alternative is cycling.
Using energy-efficient equipment, making sure you have enough insulation, and researching capability and internet providers to get the best offers are all ways to save utility expenses in Germany.
