How much money do you have in your savings account? That’s the question we ask a different Dutch person every week. Because even though we talk more and more about money, we never talk about exactly how much we earn and save. This week: 24-year-old Nick, who bought his mother’s house after a turbulent start in the housing market.
Occupation: transport planner
Net monthly income: 2825 euros (from employment), in addition to fluctuating income from own business
Living situation: homeowner
Nick’s Savings Account
How much do you have in your savings account?
“At the moment, about 5000 euros. It fluctuates sometimes, because you naturally start living according to your income. The focus wasn’t really on saving for a while, and I invested quite a bit in my own business. I also bought a house and a new car. Now I’m focusing on saving again.”
What do you think of your financial situation?
“Especially for my age, I’m satisfied. I’m doing well compared to many others, so that’s fine. Ultimately, I would like to move to a bigger place, but at the moment, I’m content where I am.”
How did you manage to buy a house?
“I bid and searched for over a year. At the age of 20, I moved out and luckily found a fairly cheap rental home. I paid 550 euros a month, all included. But I felt it was a waste of money and it was a small apartment. It was actually a house divided into three rental apartments. From there, I started looking, but it was impossible to compete with overbidding.
My mother eventually got a new boyfriend, with whom she bought a new house. That’s how I was able to buy my mother’s house and avoid the bidding game. Without that opportunity, I might still not have been successful in the housing market. It’s really madness. For starters and singles, it’s practically impossible to buy a house, unless you have a lot of your own money.”
How much did you pay for the house?
“I bought the house for 200,000 euros. With my salary at the time, that was the maximum for financing. Then I paid for a small renovation for a new kitchen, a floor, things like that. That was a significant chunk of my own money. In total, I invested about 15,000 euros of my own money.
Everyone has a different situation, and I realize that mine is not the norm. You don’t often hear of a 21-year-old buying a house. It also helped me that I had an inheritance from my grandfather.
In the end, I didn’t buy it in a perfect period in terms of interest rates, but now the house has already gained some value. Moreover, everything I do or renovate in the house is an increase in value. Nothing is wasted money. In that sense, it was a financial decision to invest money in bricks, and I’m grateful that I was able to do that through family. I had actually given up hope myself.”
What else do you spend your money on per month?
“The majority goes to fixed costs: the mortgage, insurance, my car. Then there’s about 1500 euros left. Part of that goes to fuel and groceries. And what’s left, a large part goes to fun things. For example, weekend getaways, terrace outings, football matches: it all adds up. Lately, I’ve been a bit more careful. But before, I easily spent money. If I wanted a new Apple watch, for example, I would just buy it, for 500 euros. I would take that from my savings account. Now I’m less likely to do that.”
How is saving going now?
“I save a fixed 500 euros, unless there are major extra expenses that month. I’ve been doing that for about a year now, and so far, it’s going pretty well. I now find it more important to replenish my savings account. That’s why I also notice that it hurts more to take money out of my savings account.
About 10,000 euros would be a nice buffer for me. Anything above that, I could safely reinvest.”
You also have your own business. How does that work?
“I did a catering course and eventually found a real passion there. After graduating, corona hit, and the catering industry closed. I didn’t want to be unemployed right after my studies, so I started working in the supermarket as a department head. Through connections, I then ended up in transport planning. At the same time, I wanted to continue doing something with catering, so I started my own business during covid. A year and a half ago, a partner joined, and now we run a barbecue catering business together. It’s starting to pay off now. We also participate in festivals, and it works.
It’s my dream to start my own restaurant someday. But before you get a loan from the bank, you need a substantial amount of money. Catering is hard work, but it gives me a lot of satisfaction. When we see all the excited people after a party and we’ve served quality food, that makes me very happy.”
Where do you spend more money than you would like?
“The groceries. Normally, I shop every day. If I need something, I’ll get it. Or if I need lunch for work, I’ll stop by the store in the morning. A small bag of groceries can easily cost 40 to 50 euros. I could look at that more closely. I think I spend over 400 euros a month on groceries. In that respect, I’m also a bit of a luxury cat. If I feel like having a steak, I’ll get one from the butcher, or if I buy new clothes, I buy Tommy Hilfiger or Ralph Lauren.”
What is your best financial tip?
“Keep a close eye on your expenses. I’m trying to do that better now by writing down expenses. A bit old school with pen and paper, but then you remember it well. And also, I would say: live within your means and don’t spend more than you have.”
Curious about more savings stories from other readers? Then also read the previous editions of Metro’s weekly section, The Savings Account.
Money makes (not) happy: ‘Lucille Werner is my role model’
This is how high your unemployment benefit is if you become unemployed
Comments
