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So as a high earner, what would be a rational thing to do? German savings rate is about 10%, let’s assume it’s 20% for a high earner. If she decides to stop s

by lixtra 7y ago

So as a high earner, what would be a rational thing to do? German savings rate is about 10%, let’s assume it’s 20% for a high earner. If she decides to stop saving, she can reduce her workload to 80%. This is generally easier than it might look like[1]. Because of progressive taxes, she will still earn about 85% of her income, so she can still save 5%, but rather outside of Europe with its faltering economy. Especially when more high earners decide to work less and live more. Luckily few people act rationally. [1] https://www.globaladvocaten.com/blog/labour-law-parttime-work-in-germany https://www.globaladvocaten.com/blog/labour-law-parttime-wor...

acd 7y ago
Quality of life also increases if you work 80% as you now have 20% more free time.
AdrianB1 7y ago
The biggest problem I find is financing the activities in the extra free time. Most of my saving capability comes from the fact I have no time to spend what I get, if I take more vacation and lower pay I am becoming bankrupt very soon, very fast. Not working and just staying at home because I cannot afford to go anywhere is not a positive use of my time, I can work and be productive.
- triceratops 7y ago
  > The biggest problem I find is financing the activities in the extra free time Find cheaper hobbies. Video games, library books, walks in parks (city, regional, national), exercising or playing cheap team sports like soccer or basketball, local volunteering, playing music - all have a very low cost per hour. Other hobbies such as woodworking/carpentry, painting or other arts and crafts, have higher costs but also the possibility of making some money. If you have more vacation time, you can also choose cheaper but slower modes of transport or book tickets and accommodation at non-peak times. E.g. you're not forced to travel around long weekends or Christmas holidays to get a decent-sized break.

by lixtra 7y ago

acd 7y ago

Quality of life also increases if you work 80% as you now have 20% more free time.

AdrianB1 7y ago

The biggest problem I find is financing the activities in the extra free time. Most of my saving capability comes from the fact I have no time to spend what I get, if I take more vacation and lower pay I am becoming bankrupt very soon, very fast. Not working and just staying at home because I cannot afford to go anywhere is not a positive use of my time, I can work and be productive.

triceratops 7y ago
> The biggest problem I find is financing the activities in the extra free time Find cheaper hobbies. Video games, library books, walks in parks (city, regional, national), exercising or playing cheap team sports like soccer or basketball, local volunteering, playing music - all have a very low cost per hour. Other hobbies such as woodworking/carpentry, painting or other arts and crafts, have higher costs but also the possibility of making some money. If you have more vacation time, you can also choose cheaper but slower modes of transport or book tickets and accommodation at non-peak times. E.g. you're not forced to travel around long weekends or Christmas holidays to get a decent-sized break.