Piggy bank.
Banking Basics

How to Break Bad Spending Habits

Do you sometimes spend money when you probably shouldn’t? Don’t be too hard on yourself. Everyone falls victim to bad spending habits now and then. At N26, we aim to empower you to take control of your finances, and from time to time, that means treating yourself. But if you’ve been treating yourself a bit too often lately, we’re here to help you start making smarter spending decisions today.

Are you an overspender?

It’s perfectly fine to treat yourself to a meal out with friends or to buy new clothes once in a while. These things make life more enjoyable. But if you treat yourself too often and overspend, it can get in the way of your larger financial goals. It can also make the experience of treating yourself less meaningful. Look at it this way: If you only go to a nice restaurant once a month, you might just savor every moment of your special night out. But if you eat out every day, it’s no big deal — it’s just another part of your routine.

Solution: Track your daily spending

To get better at managing your money, first you have to know where it goes. The N26 app tracks your spending for you, automatically categorizing your purchases and showing you a simple visual breakdown. When you can see that you spent 60% of last month’s income at restaurants, it’s easy to understand that you might want to cut back.

Do you use your credit card too much?

Credit cards make overspending dangerously easy. Paying with credit isn’t necessarily bad, but if you charge more money on your credit card than you can afford to pay off, you may wind up overloaded with debt.

Solution: Use a debit card for everyday purchases

With a credit card, you may have access to a considerable amount of money, and it can be very tempting to spend more than you can afford to pay back. But with a debit card, you only have access to money that’s already in your account. If you have $200 in your checking account, the most you can spend is $200. If you have an issue with overspending, use debit for your daily expenses and reserve credit for bigger purchases or emergencies.

Haven’t started saving?

Putting off saving is all too easy, and that’s why so many people don’t do it. It can be difficult to stash away funds when you have so many needs in the present. Between rent, student loans, groceries, and everything else, it may seem almost impossible to save for anything. But if you put off saving, your future self could miss out on thousands of dollars.

Solution: Start saving on your own terms with Spaces

We get it. Putting money aside can be tough, which is why we’ve made the process easier than ever (and taken away hidden fees and fines that many banks charge.) With Spaces, you can easily visualize your financial goals and track your progress. Set a savings target, choose an icon, and transfer money in or out instantly with just a few taps. And we’ll never charge you for doing so.


Break Your Bad Spending Habits With N26

Discover how easy it can be to make better financial choices when you have the right tools. N26 simplifies money management for you by eliminating common hidden banking fees and by making saving fun an personal. Ready to get started? Open an account today in 5 minutes directly from your smartphone.

The N26 account is offered by Axos Bank®, Member FDIC. N26 Inc. is a service provider of Axos Bank. All deposit accounts of the same ownership and/or vesting held at Axos Bank are combined and insured under the same FDIC Certificate 35546. All deposit accounts through Axos Bank brands are not separately insured by the FDIC from other deposit accounts held with the same ownership and/or vesting at Axos Bank. The N26 Visa® Debit Card is issued by Axos Bank pursuant to a license by Visa U.S.A. Inc. The N26 Visa Debit Card may be used everywhere Visa debit cards are accepted.

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