5 Ideas for Financial New Year’s Resolutions
What do you want your financial future to look like? Setting a financial New Year’s resolution is the perfect opportunity to take charge of your money.
3 min read
What do you want your financial future to look like? While we’re well into 2021, setting a financial New Year’s resolution is the perfect opportunity to take charge of your money. Even the biggest goals become attainable when you break them down into smaller steps, especially when you have the right financial tools.
N26 is here to give you powerful and intuitive tools and the necessary knowledge to help you make smart money decisions in the new year. Whether your financial goals are to spend less, save more, or simply stay on top of your money, here are five ideas to motivate you in the new year.
Save 10% of your monthly paycheck
What do you want to save for? A new laptop, a place of your own, a much needed weekend getaway? Stashing away 10% of your income each month will help you make it happen. Use N26 Spaces to create a goal that’s separate from your every-day spending money. Every time you receive a paycheck, immediately add 10% of the amount to your Space. All it takes is a few taps, and you’ll be well on your way to reaching your goal.
Create a financial budget
A budget is a complete plan for allocating your income and expenses, so you’re able to get a full picture of your finances. Take a look at how much money you have coming in each month, review your bills and expenses, and set savings goals. Decide how you’d like to spend your money in the coming months, and then determine actions that will help you make it happen. Finally, check in regularly to see if you’re on track.
Add a no-spending day to your weekly routine
Dedicate one day each week to not spending any money on unnecessary splurges: no shopping online for clothes, no lattes at the coffee shop, no food truck lunches. You can spend on “needs” (essentials like bills and groceries) but not on “wants” (anything that’s not essential). Not only will this help you to curb extra expenses, but it will also help you notice any unhealthy spending patterns.
Break bad spending habits
Overspending, impulse shopping, charging too much on your credit card — we all make poor money decisions from time to time. But if they become a habit, they can really derail your finances. To get your expenses under control, first you have to know exactly what you’re spending money on. The N26 app tracks your expenses with automated spending statistics that categorizes all your purchases. Knowledge is power, and with full access to your spending habits, you can decide which behaviors you might want to change.
Pay down your debt
Speaking of debt, it can really drag you down. Getting serious about reducing any outstanding debt this year is a great resolution to consider for 2021. Whether your goal is to pay down your credit card bill or your student loans, once you get the ball rolling it becomes easier and easier. Set a goal for how much you want to pay back each month, and decide where you want to cut back on your expenses so that you can make the greatest dent. Remember to give yourself small rewards as you reach every step towards your goal.
How to keep your New Year’s resolution
The key to keeping your resolution is to make it meaningful and attainable. For example: If you want to spend less money at restaurants, a resolution to not eat out at all for the next twelve months probably won’t work. You’ll be setting yourself up for failure. Go for something a little more realistic instead, like cutting your restaurant spending by 20%. Put some of the money that you save towards something that matters to you, like a short or long-term savings goal. Finally, be sure to check in on your resolution progress regularly to keep yourself on track.
Explore your opportunities with N26
Fuel your financial journey this year and achieve your money goals with the help of N26’s innovative features to help you manage your money. Sign up for N26 in just 5 minutes and discover what’s possible with mobile banking that’s designed around you.
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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