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How better budgeting creates better habits

As autumn sweeps in, it brings with it a sense of change, transformation and new beginnings. We try to give up alcohol for Sober October and smoking for Stoptober - but how can we make sure these good habits stick? At N26, we’ve got a pretty good idea. The key to making these healthy lifestyle choices the norm rather than the exception starts with taking control of your finances. That may seem like an outlandish claim, but hear us out.

Start small, dream big

The trick to maintaining healthy habits is to start small.

Be realistic about your goals and allow yourself some margin for error. An “all or nothing” mentality can often mean that if you fall off the good habits bandwagon, you stay off it for good. But it doesn’t have to be that way. As they say, Rome wasn’t built in a day, and those healthy lifestyle choices are going to take some time to become your new normal. Looking at the formation of new habits as a process rather than a quick sprint sets you up for success. It’s all about the small wins - and the same is true for your long term savings goals. This is why we created Spaces. Spaces are essentially satellite savings accounts or sub accounts which sit parallel to your main N26 account. In each Space, you can set a total and you can see how close you are to achieving your goal over time.

It’s all about the big picture

Once you’ve set yourself small, attainable goals, it’s important to monitor your achievements. Observing how sticking to your new habits becomes easier or harder in certain situations is essential. As you identify the triggers, scenarios and thought processes that can lead you astray, you can better prepare for them when they arise, keeping you on track. Maintaining a sense of awareness and a clear overview of your progress is therefore indispensable. As an N26 bank account holder, you receive push-notifications for all your account activity, meaning that you always see the big picture. What’s more, using AI, we’re able to categorize and show you exactly where all your money goes. Information is power, and feeling empowered leads to better decision-making. By understanding where every penny is being spent, you can make more informed changes to help you achieve your healthy habit and savings goals.

Manage your finances, manage your life

We believe that by being able to track and manage your finances in real-time, you feel more in control of your life. This in turn leads to a better sense of where you’re at, where you want to be and the habits you need to cultivate in order to get there. For example, we’ve learnt that by putting money into a designated Spaces savings account, you are much more likely to use that money for its intended purpose. Be that saving up for a holiday, paying for a yoga course or contributing to a “treat yourself” fund. Remember: What you choose to do with your money today, cultivates the habits you form tomorrow. Not an N26 member? Signing up is easy. Simply create an account here and in a matter of minutes, you’ll be good to go. Budgeting has never been so easy!

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