Please help. Learning the language for a long time and still, can't understand what people tell me.

When it comes to writing and grammar tests I am good. I can speak, I don't get frustrated when I talk. BUT when people say something to me I understand only half of what they are saying, even if it is the simple stuff. Most of the time I just guess from the context. I put so much effort and yet it doesn't pay back, that makes me think I am doing something wrong. P.S. I am currently living in Austria. And I am pretty sure it is not the local dialect that is the problem.