Set a budget and spend wisely
A budget helps you track your income and expenses, ensuring that essential needs like rent and groceries come first while allowing for controlled spending.
To keep your budget realistic and aligned with your lifestyle, review it regularly. Budgeting apps can help you identify areas for adjustment.
National Bank of Greece offers Next by NBG, an app designed for young users with budgeting tools to help manage finances and reach savings goals.
However, creating a budget is the easy bit —sticking to it is harder. It requires discipline and constant expense tracking. Large or impulsive purchases can cause financial stress, making it more challenging to stick to your budget and planned expenses.
Borrow responsibly and save (even if it's just a little)
Borrowing isn't inherently bad. When used correctly, such as for buying a home or car, and provided you can manage the repayment costs, it can benefit your future. However, you should avoid borrowing more than needed, especially for essential expenses like food and bills, as this can lead to bigger problems.
Saving small amounts regularly is a great way to start putting money aside. You can set a fixed monthly savings goal or try to save a bit more each month. A simple approach is to set aside the amount every time you get paid or set up automatic deductions using smart tools like Money Box available through NBG Digital Banking. This "digital piggy bank" allows you to set specific savings goals (e.g., vacation) and the amount you want to reach.
Think before making financial decisions
When making a big purchase, don't rush. Take the time to compare the price-to-value ratio before you reach the checkout. Use online comparison tools to find the best deal, even for smaller purchases.
Last, set a specific day each year to review your subscriptions and recurring charges. This ensures they meet your needs and helps you avoid spending money without oversight.
Look to the future
If there's one thing you can be sure of, it's that unexpected expenses will arise at some point. That's why creating an emergency fund with living expenses for three to six months is a good idea, so you won't have to resort to emergency borrowing on unfavorable terms. To make it easier, you can start with small amounts and gradually increase your savings over time.
Financial planning goes beyond your daily budget. Whether saving for a trip, a business, or retirement, early planning offers flexibility. By setting realistic goals and preparing for the future, you can reduce financial stress through small, consistent efforts to build a strong foundation for a financially secure tomorrow.