Training Example: N26 – Review the Data, Give Your Score & Compare to the Real AI Evaluation

Error, video failed to play
[H1] The first bank you'll love
Bank, save, and invest in one beautifully simple app trusted by millions.
[H2] Bank for free with no hidden fees
Open your account in minutes and enjoy 100% mobile banking. Get a free virtual card and monthly ATM withdrawals.Open an N26 Standard account
[IMG: A smartphone screen displays the N26 banking app]
[H2] Simplify your shared finances
Get a free joint account with a dedicated IBAN or a card for under 18s with limits set by you.
[H2] Get an 
ECB-linked interest rate
Open a new N26 Metal account and earn 2% interest p.a.1 on your Instant Savings — linked to the European Central Bank rate.Discover Instant Savings
[IMG: A person holds a smartphone, displaying the N26 banking app with an active interest-earning account showing a balance of €2,005.62.]
[H2] Free stock and ETF trading
Trade stocks and ETFs for free2. Buy and sell 400+ crypto coins instantly3. Then put it all on autopilot with our free savings plans.Investing involves risk of financial loss.Start investing
[H2]
Trading stocks and ETFs with N26 is fee-free. Product costs may apply, e.g. ETF management fees and third-party inducements.
[H2] The card made for travel
Get cashback4 on travel, the best exchange rates, and airport lounge access. Travel stress-free thanks to free ATM withdrawals abroad and insurance — included with N26 Go and Metal.Open an N26 Go account
[IMG: A vertical stack of four N26 Mastercard debit cards in different colors including transparent, grey, teal, and black, floating against a dark teal gradient background.]
[H2] Choose your plan
Find the N26 plan that's best for you and open your account in minutesCompare plans
[H2]
1 Valid only for new customers who open a new N26 Metal account from 19/02/2025 onwards. The interest rate for the N26 Instant Savings account corresponds to the current European Central Bank deposit facility rate (2% starting on 11/06/2025) and is subject to change by N26 any time. Terms and conditions apply.
For existing customers, N26 Instant Savings account interest rates are based on their main N26 plan, for both personal and business accounts: from 11/06/2025 onwards, 0.30% p.a. for Standard and Smart, 0.50% p.a. for N26 Go, and 1.50% p.a. for Metal (before taxes). Please note that rates per plan can be changed by N26 over time. This offer is available at no extra cost in the N26 app in Estonia, Finland, Greece, Ireland, Latvia, Lithuania, Luxembourg, the Netherlands, Portugal, Slovakia, and Slovenia.
2 These statements are intended to provide general information and do not constitute investment advice or any other advice on financial services and financial instruments such as Stocks, ETFs and Ready-made funds. These statements also do not constitute an offer to conclude a contract for the purchase or sale of Stocks, ETFs and ready-made funds. Stocks, ETFs and Ready-made funds can be subject to high fluctuations in value. A decline in value or a complete loss of the money invested are possible at any time. The values depicted are fictional and for illustrative purposes. Stocks and ETFs are currently available for eligible customers in Germany, Austria, France, Spain, Ireland, Belgium Denmark, Estonia, Finland, Greece, Latvia, Lithuania, Norway, Poland, Portugal, Slovakia, Slovenia and the Netherlands. Using the N26 Broker service is always subject to eligibility.
Trading stocks and ETFs with N26 is fee-free. Product costs may apply, e.g. ETF management fees and third-party inducements.
3 The market for crypto assets constitutes a high risk. A complete loss of the money spent is possible at any time. N26 Crypto is powered by Bitpanda.
4 Eligible spending: Detailed T&Cs for customers who sign up before July 17 and after October 15 can be found here: https://n26.com/hb-ex
[H2]
[H3] Is N26 a bank?
N26 is the first 100% mobile bank to be granted and operate with a full German banking license from the German Federal Financial Supervisory Authority (BaFin). That means your money is fully protected — both in your bank account and Instant Savings account — up to €100,000 by the German Deposit Protection Scheme. We currently operate in 24 markets worldwide and have over 8 million customers.
[H3] Where is N26 available?
We offer our accounts in the following countries: Austria, Belgium, Denmark, Estonia, Finland, France (not available for residents in the French territories outside Europe), Germany, Greece, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Netherlands, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, and Switzerland. You can open your account if you live in one of these countries and meet our requirements. Our products and services vary by country.
[H3] Is N26 secure?
N26 has been granted a full German banking license from BaFin. By law, each customer’s funds are protected up to €100,000 by the German Deposit Protection Scheme. With 3D Secure, Mastercard Identity Check, and fingerprint and face recognition, the security of your online payments is always guaranteed.
[H3] How is N26 protecting my money and personal data?
As a bank, N26 is supervised by BaFin. Your funds are guaranteed up to €100,000 by the German Deposit Protection Scheme. In addition, the N26 app has many features to ensure the security of your bank account and data.
[H3] What documents do I need to open an N26 bank account?
In order to open a bank account with N26, you must have a government-issued ID. See the list of List of accepted ID documents here. Don’t worry, there’s no fussy paperwork or long wait times involved — just present your valid ID during a quick call and you’ll be up and running. Note that you’ll need a smartphone to use your account, and must live in an eligible country where N26 operates.
[H3] How much does it cost to open a bank account?
The standard N26 bank account is free, with no opening or maintenance fees. The N26 Smart bank account costs €4.90 per month, the N26 Go bank account costs €9.90 per month, and the N26 Metal account is available for €16.90 per month. To open an N26 account, no deposit or minimum income is required.
[H3] How long does it take to open a bank account with N26?
You can open your mobile N26 account online in minutes from your phone or the N26 website — no paperwork or waiting times. But best of all: once your N26 bank account is active, you can start using it right away. This means you can start spending with your virtual card as soon as your account is set up, and you don't have to wait for your physical card to arrive.
[H4] Noteworthy reads
Articles and stories to help you make the most of your money
[IMG: picture of a woman and a trading illustration.]
[H4] A beginner's guide: What is trading and how does it work?
Trading is more than a buzzword or an ‘80s throwback. This article covers what financial trading is and how it works, step by step.
[IMG: kid showing the coins placed in a glass jar.]
[H4] How to save money fast: 17 tips to grow your savings
Whether your financial goals are big or small, these life hacks will help you save money faster.
[IMG: Pie Chart.]
[H4] The 50/30/20 rule: how to budget your money more efficiently
The 50/30/20 budget is beautiful in its simplicity. It can help you divide your income into categories that make saving easy.
[IMG: picture of a woman and a trading illustration.]
[H4] A beginner's guide: What is trading and how does it work?
Trading is more than a buzzword or an ‘80s throwback. This article covers what financial trading is and how it works, step by step.
[IMG: kid showing the coins placed in a glass jar.]
[H4] How to save money fast: 17 tips to grow your savings
Whether your financial goals are big or small, these life hacks will help you save money faster.
[IMG: Pie Chart.]
[H4] The 50/30/20 rule: how to budget your money more efficiently
The 50/30/20 budget is beautiful in its simplicity. It can help you divide your income into categories that make saving easy.

BlogInvestA beginner's guide: What is trading and how does it work?Back to Invest
[H1] A beginner's guide: What is trading and how does it work?
Trading is more than a buzzword or an ‘80s throwback. This article covers what financial trading is and how it works, step by step. AUGUST 30, 20246 min readThe following statements do not constitute investment advice or any other advice on financial services, financial instruments, financial products or digital assets. They are intended to provide general information. The following statements do not constitute an offer to conclude a contract for the purchase or sale of financial instruments and financial products or an invitation to submit such an offer and to buy or sell any particular digital asset.Stocks and ETFs are subject to high fluctuations in value. A decline in value or a complete loss are possible at any time. The loss of access to data and passwords can also lead to a complete loss.Basics of trading: Trading involves buying and selling financial assets, such as stocks. The goal is to profit from changing prices, using strategies that range from short-term to long-term.Mechanics and strategy: Some major aspects of trading include market analysis, opening positions, risk management, and using technology to make efficient trades.Benefits and risks: There’s a lot of flexibility with trading, but the market can also be volatile — there’s potential for both profit and loss. You need to be disciplined, ready to learn, and thoughtful about how to manage your risk.Embarking into the world of trading can be daunting. There are fundamental financial concepts and mechanisms at play, and financial markets aren’t exactly known for being simple and easy to understand. But don’t be discouraged! This article is a roadmap to help newcomers grasp the basics of what trading is and how it works.Ready to get started? Let’s go!
[H2] What is trading?
Trading involves the buying and selling of financial assets, such as stocks, to earn profits based on the price fluctuations of these assets. There are different types of trading, and traders use various strategies, techniques, and tools to decide when to buy or sell different assets. The aim, however, is always to profit from the price difference.  Here’s a simple example: When the COVID-19 pandemic began and travelling suddenly wasn’t possible, airlines’ stock prices went down — to the tune of a 12% single-day drop in mid-March. This was an opportunity for traders to buy cheap airline assets on the speculation that airline stock prices would go back up after the pandemic ended. If that happened (and it did!), traders could make a profit.The trading time frame can range from long-term investments to short-term trades lasting minutes, hours, or days. It involves assessing market conditions and economic factors, technical analysis, and sometimes speculation. In short, it’s all about anticipating how prices will move, and then making trading decisions.Now that you know what trading is, let's look at how it works.
[H3] Investments made easy
With N26, you can buy stocks and ETFs without leaving your banking app. Get started from as little as €1.Discover Stocks and ETFs
[IMG: Performance chart of an investment, accompanied by money.]
[H2] How does trading work?
The fundamental principle that makes trading work is the connection between supply and demand. When there are more buyers than sellers, demand increases — and so do the prices. When sellers outnumber buyers, demand shrinks, causing prices to fall. This can happen for many reasons: market trends, geopolitical events such as war or economic sanctions, natural disasters like droughts, or technological developments. Additionally, a trader's profit relies on the market price eventually matching their speculation — for example, our trader assumed that airline stock prices would increase again. If the pandemic had continued and all airline companies had collapsed, this speculation would have been wrong, and the trader would have lost money.Trading involves a series of steps. Here's a simplified overview of how trading typically works:Education and strategy: Traders have to learn about markets, different assets, and trading strategies. The more they learn, the more prepared they’ll be to make decisions — but still, that doesn't guarantee a profit. Market analysis: Traders analyze market conditions, trends, news, and indicators to identify potential opportunities. This involves studying price charts, patterns, economic data, company performance, or global events impacting the market.Opening a position: Based on their analysis, traders decide when and what to buy or sell. They place orders through a broker or a trading platform. Today, that can be done on online platforms or banking apps. Monitoring and managing positions: Traders must monitor their positions, using stop-loss orders to limit potential losses and take-profit orders to secure profits. Constant monitoring helps traders react to market changes and adjust their strategies to reduce potential losses.Closing positions: Traders close their positions when they achieve their desired profit, reach a predetermined stop-loss level, or when market conditions indicate a need to exit. Review and analysis: After closing a trade, traders often review their performance, analyzing what worked well and what didn't. This helps refine their strategies for future trades.Risk management: Successful traders prioritize risk management. They diversify their portfolios, use appropriate position sizes, set stop-loss levels, and avoid risking too much capital on a single trade.Remember, trading involves risk, and not all trades will result in profits! It requires discipline, continuous learning, and adapting to changing market conditions. Nothing is certain in trading: Market volatility, economic events, and even unexpected news can — and will — influence trading outcomes.
[H3] Save up with Spaces
Use N26 Spaces sub-accounts to easily organize your money and save up for your goals.Discover sub-accounts
[IMG: Different N26 spaces to save money.]
[H2] What are the benefits of trading?
Despite its risks, trading offers many advantages. The potential for high returns is the main motivator for many people to get into the dynamic world of trading and financial markets. There are plenty of opportunities, including: Profit potential: With skillful analysis and the right strategy, traders can benefit from both upward and downward market trends, potentially increasing their initial investment.Liquidity: Markets generally offer high liquidity, since there's typically a buyer or seller available. This liquidity allows traders to enter and exit positions easily, reducing the risk of not being able to execute trades.Flexibility: The time commitment and strategies of trading are flexible. Traders can opt for short-term or long-term trading, choose different financial assets, and adapt strategies based on changing market conditions.Technology and tools: These days, traders rely on online trading platforms and resources that enable them to gather data, analyze, and execute trades efficiently.Continuous learning: Engaging in trading means committing to ongoing learning. Traders continuously develop their skills, understanding of markets, and strategies, which might help them make better trading decisions — and potentially higher profits.Independence: Trading allows individuals to take charge of their financial decisions. Traders have control over their portfolios, strategies, and the timing of their trades.While there are plenty of opportunities with trading, it also carries risks. Market volatility, unexpected events, and fluctuations can lead to losses. Plus, it can be a lot of work — successful trading often requires discipline, a thorough understanding of markets, careful risk management, and continuous learning so that you can adapt to changing market conditions.Take it easy and make sure to keep learning if you think trading is right for you.
[H3] Start banking online
Open your dream bank account in minutes — right from your smartphone. No paperwork needed!Get your N26 bank account
[IMG: Start banking online.]
[H2] Invest from anywhere with N26
With N26, making your money work for you has never been easier. Smart, intuitive tools let you invest your money your way — whether you want to start trading, automate your investments, buy stocks, or get into ETFs. And there’s no paperwork — just full transparency and security.
Plus, with N26 Spaces subaccounts, you can easily set aside funds for your investments. Ready for the stock market? Trade, invest, and manage your money with confidence.
[H2] FAQ
[H3] What are the different types of financial assets that can be traded?
Some of the different types of tradable financial assets are:
Stocks — shares of companies
Bonds — government and corporate debt
Commodities‌ — gold, oil, agricultural products
Currencies — forex
Derivatives — options, futures, swaps
Exchange-traded funds (ETFs)
Cryptocurrencies
[H3] How do trading fees and commissions impact your overall trading performance?
Trading fees and commissions can eat into profits on successful trades and increase losses on unsuccessful ones. There’s more impact on people who trade often or in smaller amounts.
[H3] What are the main differences between fundamental analysis and technical analysis in trading?
Fundamental analysis looks at a company's financial health, management, and industry position to determine its value. Technical analysis looks for patterns and trends in historical price and volume data, often using charts and statistical indicators.
[H3] How can beginners practice trading without risking real money?
Smart question! Before you put your money on the line, beginners can practice trading with things like:
Paper trading (simulated trading with virtual money)
Demo accounts offered by brokers
Stock market simulators and games
Backtesting strategies using historical data
[H3] What role do emotions play in trading decisions, and how can traders manage them effectively?
If you’re not careful, emotions can have a huge impact on trading decisions. Feelings like fear or excitement can push traders to either act too quickly or hesitate too long. Try these strategies to manage your emotions:
Develop and stick to a trading plan
Use stop-loss orders to limit potential losses
Practice mindfulness and stress-management techniques
Keep a trading journal to analyze decisions objectively
Take breaks when you’re feeling overwhelmed
[H2] Find similar stories
tradingtrading for beginnersBY N26Love your bankRelated PostWhat is dividend investing? Here’s what you need to know5 min readWhat is return on investment (ROI)? Plus, how to calculate it6 min readHow to read financial statements: A complete guide7 min readWhat are bonds? 6 min readWhat are mutual funds? Types, fees, and FAQs5 min read
[H4] Related Post
These might also interest you
[IMG: Market correction, explained: What it is and what triggers it.]
INVEST
[H4] Market correction, explained: What it is and what triggers it
A decline in prices isn’t necessarily a sign of a full-blown market crisis. Learn what a market correction is, what causes it, and how to spot the difference between a correction and a crash.6 min read
[IMG: What is earnings per share? How to calculate EPS.]
INVEST
[H4] What is earnings per share? How to calculate EPS
Get familiar with the basics of earnings per share (EPS) and what this profitability metric means for investors.5 min read
[IMG: How to navigate market volatility.]
INVEST
[H4] How to navigate market volatility
When uncertainty hits the markets, it’s hard not to let anxiety take over.6 min read
[IMG: Market correction, explained: What it is and what triggers it.]
INVEST
[H4] Market correction, explained: What it is and what triggers it
A decline in prices isn’t necessarily a sign of a full-blown market crisis. Learn what a market correction is, what causes it, and how to spot the difference between a correction and a crash.6 min read
[IMG: What is earnings per share? How to calculate EPS.]
INVEST
[H4] What is earnings per share? How to calculate EPS
Get familiar with the basics of earnings per share (EPS) and what this profitability metric means for investors.5 min read
[IMG: How to navigate market volatility.]
INVEST
[H4] How to navigate market volatility
When uncertainty hits the markets, it’s hard not to let anxiety take over.6 min readBack to Blog

BlogBudgetingHow to save money fast: 17 tips to grow your savingsBack to Budgeting
[H1] How to save money fast: 17 tips to grow your savings
Whether your financial goals are big or small, these life hacks will help you save money faster.AUGUST 12, 202213 min readThese 17 tips on how to save money fast can help you reach your savings targets without breaking a sweat. Saving and budgeting can seem stressful at first, but having a fixed goal can actually be a source of calm. It can help you visualize an exciting future in which you’ve bought your first house, started a family or even just splurged on something nice for yourself. So, if you’re wondering how to save money fast, here are our top suggestions on how to boost your bank balance quickly.
[H2] 1. Learn to budget and understand your finances
Our most important tip for saving money fast is pretty simple: Learn to budget. If you’re in control of your budget, you’re in control of your finances. But where to start?Before you can start saving money every month, you need to come to grips with your cash flow. This means understanding all of your incoming and outgoing revenue streams, including any debt repayments, monthly bills and savings contributions. Here’s how to create a budget so you can start saving fast:Keep track of all of your finances over a 30-day period. This includes all of your income and expenditures.Compare your monthly income to your monthly expenditures to assess how much you’re currently managing to save, or how much you’re overspending each month.Separate your expenditures into fixed and variable costs. Your fixed costs are expenses that are typically difficult to adjust, such as your rent and utility bills. Your variable costs include more readily-adjustable expenditures such as groceries, entertainment and subscription services.Identify any variable costs that you can start cutting back on to increase how much you can put towards your savings goals each month.Assess your progress regularly and make adjustments if necessary. If this seems a little overwhelming, there are plenty of budgeting apps available that can help make sticking to your budget easier.
[H3] N26 Instant Savings
Earn interest on all your savings and instantly withdraw anytime — with no conditionsOpen a savings account
[IMG: Savings Account.]
[H2] 2. Get out of debt
Before you start saving, you’ll likely want to pay off any outstanding balances on your existing debts. The longer you delay paying off a debt, the larger it becomes. That’s because interest — the price you pay for borrowing money — continues to add up over time. If you put off paying your debts, the interest that accrues can wipe out any money you manage to save up.To get out of debt quickly, consider using a budgeting method such as the 50/30/20 budget. Created by US senator Elizabeth Warren when she was a Harvard bankruptcy specialist, the 50/30/20 rule offers a simplified approach to getting out of debt. It works as follows:Use 50% of your income on your needs, i.e. your fixed costs such as rent and utility bills.Use 30% of your income on your wants, i.e. your variable costs such as dining out and subscription services.Save 20% of your income. So, if you make €2500 a month after tax, this would mean you can put aside €500 a month. In just a year, you’ll have paid off €6000 worth of debt.
[H2] 3. Create a designated savings account
To save money fast, you need to separate the money you spend on your daily needs from the money you intend to save. This means setting up a designated savings account. By doing so, you minimize the risk of you dipping into your savings funds to cover daily expenses. Instead, it encourages you to stick within your day-to-day budget while keeping your savings safe from temptation!
[H4] 15 tips to save money faster
[H2] 4. Automate your savings
If you have a fixed monthly income, consider automating your savings contributions each month. This means setting up an automated transfer from your daily spending account to your savings account each month. By automating your savings, you further reduce your chance of using these funds to cover your daily expenses.To make saving a little easier, consider creating your own Rules on N26 Spaces. Rules is an in-app feature that lets you automatically move money between your main account and your Spaces. It’s a great “hands-off” way to kickstart your savings.
[H2] 5. Automate your bills
While we’re on the topic, it might also be worth automating your bill repayments. Companies frequently charge you late fees if you don’t pay them on time, so paying them before the due date will help you avoid any additional charges.
[H2] 6. Put a spending limit on your card
A great tip for saving money fast? Set a limit to how much you can spend on your credit or debit cards. This stops you from overspending and encourages you to reassess your daily expenditures in advance. Many banks offer this service. At N26, you can set your daily spending limits and choose whether to allow yourself ATM withdrawals—all in a matter of seconds, right from your N26 app.
[H2] 7. Use the envelope budgeting system
Another great life hack to help you save money fast is to use Dave Ramsey’s envelope budgeting system. This means taking your monthly income out of the bank in physical cash (yes, all of it!) at the beginning of each month and allocating it into separate envelopes.Each of these envelopes should represent one of your budgeting goals. So, you’ll have envelopes for your fixed costs (e.g., rent, utility bills), and envelopes for your variable costs (e.g., clothes shopping, eating out, groceries). By paying for everything with a fixed amount of physical cash, you’ll ensure that you stay within a certain budget for each expense type.
[H3] Budgeting made simple
N26 Spaces sub-accounts make it easy to set money aside for your goals in just a few taps.Get sub-accounts in minutes
[IMG: Different N26 spaces to save money.]
[H2] 8. Cut back on rent
Cutting back on rent is one of the quickest ways to start saving a sizeable sum of money each month. If you currently live alone, one of the easiest ways to do this is to choose to live with a roommate. This immediately halves your rent, and if you choose to live with two additional roommates, you’ll pay roughly a third of what you’re currently paying.So, if you’re currently paying €1300 a month for a three-bedroom apartment and you get an additional roommate, you’d save €650 a month. If you decided to live with two people, you’d save around €870 a month. That’s nearly €10,500 a year!If you already live in a shared apartment, consider swapping to a smaller room. Rent rates are usually calculated in accordance with the size of the room being rented, so you could make some significant savings each month. What’s more, it may also encourage you to downsize, which could mean making a bit of extra cash by selling your unused items.
[H2] 9. Cut back on your utility bills
Another great tip to save money fast is to cut back on your utility bills. Your electric bill and gas bill contribute to a significant chunk of your monthly fixed costs, so if you can reduce them, you can find yourself pocketing a fair bit of extra cash. Here’s how to do it:Change your energy provider. By making sure you’re on the cheapest tariffs on the market, you could save yourself hundreds of euros each month.Swap your light bulbs for LED light bulbs. Not only is an LED bulb 75–85% more energy efficient than a standard lightbulb, but it also lasts 15–25 times longer.Invest in a smart thermostat. This will adjust your central heating intelligently, potentially saving you a great deal of money.Seal up any air leaks. Air gaps around your windows and doors can increase your electricity bill as your heaters will have to run longer to keep the room warm. Instead, seal these gaps with pressure-sensitive weather strips to keep any warm air from escaping.
[H2] 10. Take up a side hustle
If you want to seriously boost your monthly savings, it’s worth considering taking up a side hustle. This could mean anything from working a few evening shifts at a bar or restaurant after your office job, securing a few freelance gigs, becoming a virtual assistant or perhaps even pet sitting. If you can afford to do so, it can be particularly motivating to put all the money generated from your side hustles straight into your savings account. However, be wary of burning out. Your mental health is more important than trying to achieve any savings goal!
[H2] 11. Cancel any unused subscriptions
Subscriptions are a money-making dream for a lot of companies. This is because once a customer subscribes to their service, they’re more reluctant to cancel their subscription—even if they hardly ever use it. This, in large part, is due to the sunk-cost fallacy. When applied to a subscription service, the sunk-cost fallacy means that cancelling a rarely used subscription is hard, as you’ve already paid so much money for it. Therefore, canceling the subscription would mean accepting that all the money spent on it up until that point has been wasted. But, by delaying canceling the subscription, it still feels like there’s a chance the service might eventually be used. In general, though, few of us ever fully use our subscription services to their fullest. So, it’s more cost-effective to cancel any unused subscriptions now, rather than hold out for a time when you may hypothetically use it.
[H2] 12. Try to fix things yourself
A great way to make some significant savings is to try to fix anything that breaks yourself. Thanks to YouTube and the internet at large, you can now find out how to fix pretty much anything online. From leaky pipes to the zipper on your jeans, it’s always more cost-efficient to fix these things yourself rather than pay someone else to do it, or replace them entirely.
[H2] 13. Think before you splurge
Succumbing to instant gratification is one of the biggest opponents of saving money fast. Before you make a significant expenditure, give yourself at least three to four days to think it over. This prevents the impulsive part of your brain — the part that wants to get that quick serotonin hit from a splashy new purchase — from taking over. If you really want to test yourself, consider only making significant purchases after 30 days have passed. This is a sure-fire way to keep your impulse-buying in check. It also gives you enough time to suss out if there’s a better deal elsewhere.
[H2] 14. Buy your car at the end of a financial quarter
If you want to get a good deal on a car, the best time to buy is usually at the end of March, June, September and December. Why? Because most car dealers are given specific sales targets to reach so that they can claim their financial bonuses. While these targets are set weekly and monthly, the big bonuses are given out quarterly. This means that you’re more likely to be given a better deal on a car at the end of each financial quarter as the car dealer will be keen to hit their quarterly sales target.
[H2] 15. Cut down on your grocery spending
If you can cut back on your grocery spend each week, you’ll be amazed by how much you can save over the course of a few months. One of the best ways to do this is to plan all of your meals in advance. This means that you can calculate precisely how much you’re going to spend before you go shopping and reduce your chances of going over budget. An additional tip is to consider going meat-free once a week. As meat is generally more expensive than vegetables and vegetable-based products, it’s worth choosing at least one day a week where you go without it. This small weekly saving will add up over time. On top of that, make sure you look at the products being sold on the lower-level shelves. Supermarkets often put their most expensive produce at eye-level, encouraging you to spend more, while their cheaper products are closer to the ground, making them harder to spot.
[H2] 16. Designate a no-spend day once a month
To help make money-saving a habit, nominate one day each month where, aside from your fixed costs, you’ll spend absolutely nothing. This could mean making all of your meals from the ingredients you have at home, opting to socialize in the park or at home, and having a relaxing evening reading or watching the TV. Once you’ve gotten used to this, you could increase this to two days a month, and perhaps even one day a week to really increase your monthly savings amount.
[H2] 17. Sell your unused items
If you want to start saving money for your vacation fast, it’s worth doing an audit of all your unused possessions and selling them on an online marketplace such as eBay or Nextdoor. Not only does this help declutter your home, but it can also mean earning quite a good amount of extra money which you can put towards your holiday savings goal!
[H2] How to save money for goals and life events
As we mentioned earlier, it can be helpful to have a specific goal in mind when you’re setting up a plan to save money fast. Sometimes this goal can be as big as getting married or buying a house; other times, it can be smaller in scope. Wherever your savings journey may lead you, we’ve got a guide to help you along the way. Check out some of our resources on how to save for different life events, such as:Buying a car — To save money fast for a car, there are several options available to you. As you usually won’t need to save as much as you would for a down payment on a new house, saving for a car should prove to be a little easier.Buying a house — Saving up for a down payment on a new home can seem like an impossible target, but there are a few smart tips you can use to make some big savings in next to no time.Getting married —  Wondering what the average wedding costs? Take a look at our pricing breakdown and follow our simple tips for staying within your wedding budget.  Having a baby — If having children is part of your life plan, it’s important to understand the costs involved.Changing jobs — A career change can be a thrilling challenge, and it doesn’t need to come at the expense of your savings plan. Going on a sabbatical — If you’re thinking of taking a sabbatical from work, you’ll want to plan ahead and know how much you need to save. Planning ahead can make it all the more rewarding to focus on yourself.Moving to a new country — Moving to a new country can seem daunting, and the costs of moving play a big role. Check out our guide to making your next international move easier on your mind and wallet.
[H3] Budgeting made easy
Visualize your daily expenses and savings to help you make the most out of your money.Try the budgeting calculator
[IMG: Spaces tile in N26 App.]
[H2] Your money at N26
With our online bank account, not only can you set yourself daily spending limits, but you’ll also receive push notifications right after each transaction, so it’s easier to keep to your budgeting goals. Signing up for an N26 bank account requires

BlogBudgetingThe 50/30/20 rule: how to budget your money more efficientlyBack to Budgeting
[H1] The 50/30/20 rule: how to budget your money more efficiently
The 50/30/20 budget is beautiful in its simplicity. It can help you divide your income into categories that make saving easy.AUGUST 12, 20228 min readBudgeting doesn’t need to be complicated, nor should it take hours out of your day. In fact, the best ways to budget are often the simplest. Take, for example, the 50/30/20 rule. The 50/30/20 rule is a straightforward monthly budgeting method that tells you exactly how much to put towards your savings and your living costs each month.With a clear big-picture overview of your budget for the month, you can confidently avoid overspending and build up your savings over time—all without painstakingly recording every single transaction.So, if you’ve ever downloaded a budgeting app only to abandon it by the third day, you might want to give the 50/30/20 method a try. It’s one of the best budgeting tips we’ve found, and here’s how it works.
[H2] What is the 50/30/20 rule?
The 50/30/20 rule is an easy budgeting method that can help you to manage your money effectively, simply and sustainably. The basic rule of thumb is to divide your monthly after-tax income into three spending categories: 50% for needs, 30% for wants and 20% for savings or paying off debt.
[H3] N26 Instant Savings
Earn interest on all your savings and instantly withdraw anytime — with no conditionsOpen a savings account
[IMG: Savings Account.]
By regularly keeping your expenses balanced across these main spending areas, you can put your money to work more efficiently. And with only three major categories to track, you can save yourself the time and stress of digging into the details every time you spend.However, the 50/30/20 rule should only be used as a rule of thumb for budget planning. The exact percentages for each category depend on your personal financial situation, local cost of living, inflation, and many other factors.One question we hear a lot when it comes to budgeting is, “Why can’t I save more?” The 50/30/20 rule is a great way to solve that age-old riddle and build more structure into your spending habits. It can make it easier to reach your financial goals, whether you’re saving up for a rainy day or working to pay off debt.
[H2] Where did the 50/30/20 rule come from?
The 50/30/20 rule originates from the 2005 book, “All Your Worth: The Ultimate Lifetime Money Plan,” written by current US Senator Elizabeth Warren and her daughter, Amelia Warren Tyagi.Referencing over 20 years of research, Warren and Tyagi conclude that you don’t need a complicated budget to get your finances in check. All you need to do is balance your money across your needs, wants and savings goals by using the 50/30/20 rule.
[H4] Savings Tips | The 50-30-20 Rule
[H2] How to budget your money with the 50/30/20 rule
The 50/30/20 rule simplifies budgeting by dividing your after-tax income into just three spending categories: needs, wants and savings or debts. Knowing exactly how much to spend on each category will make it easier to stick to your budget, and help keep your spending in check. Here’s what a budget that adheres to the 50/30/20 rule looks like:
[H3] Spend 50% of your money on needs
Simply put, needs are expenses that you can’t avoid—payments for all the essentials that would be difficult to live without. 50% of your after-tax income should cover your most necessary costs. Needs may include:Monthly rentElectricity and gas billsTransportationInsurances (for healthcare, car, or pets)Minimum loan repaymentsBasic groceriesFor example, if your monthly after-tax income is €2000, €1000 should be allocated to your needs.This budget may differ from one person to another. If you find that your needs add up to much more than 50% of your take-home income, you may be able to make some changes to bring those expenses down a bit. This could be as simple as swapping to a different energy provider, or finding some new ways to save money while grocery shopping. It could also mean deeper life changes, such as looking for a less-expensive living situation.
[H3] Spend 30% of your money on wants
With 50% of your after-tax income taking care of your most basic needs, 30% of your after-tax income can be used to cover your wants. Wants are defined as non-essential expenses—things that you choose to spend your money on, although you could live without them if you had to. These may include:Dining outClothes shoppingHolidaysGym membershipEntertainment subscriptions (Netflix, HBO, Amazon Prime)Groceries (other than the essentials)Using the same example as above, if your monthly after-tax income is €2000, you can spend €600 for your wants. And if you discover that you’re spending too much on your wants, it’s worth thinking about which of those you could cut back on. As a side note, following the 50/30/20 rule doesn’t mean not being able to enjoy your life. It simply means being more conscious about your money by finding areas in your budget where you’re needlessly overspending. If you’re confused about whether something is a need or a want, simply ask yourself, “Could I live without this?” If the answer is yes, that’s probably a want.
[H3] Stash 20% of your money for savings
With 50% of your monthly income going towards your needs and 30% allocated to your wants, the remaining 20% can be put towards achieving your savings goals, or paying back any outstanding debts. Although minimum repayments are considered needs, any extra repayments reduce your existing debt and future interest, so they are classified as savings.Consistently putting aside 20% of your pay each month can help you build a better, more durable savings plan. This is true whether your ultimate goal is building an emergency fund, developing a long-term personal financial plan, or even preparing for a down payment on a house.And it’s impressive how quickly the savings can add up. If you bring home €2000 after tax each month, you could put €400 towards your savings goals. In just a year, you’ll have saved close to €5000!
[H3] Save up with Spaces
Use N26 Spaces sub-accounts to easily organize your money and save up for your goals.Discover sub-accounts
[IMG: Different N26 spaces to save money.]
[H2] How to apply the 50/30/20 rule: a step-by-step guide
So, how do you actually use the 50/30/20 rule? To put this simple budgeting rule into action, you’ll have to calculate the 50/30/20 ratio based on your income and categorize your spending. Here’s how:
[H3] 1. Calculate your after-tax income
The first step to using the 50/30/20 budgeting rule is to calculate your after-tax income. If you’re a freelancer, your after-tax income will be what you earn in a month, minus your business expenses and the amount you’ve set aside for taxes. If you’re an employee with a steady paycheck, this will be easier. Take a look at your payslip to see how much lands in your bank account each month. If your paycheck automatically deducts payments such as health insurance or pension funds, add them back in.
[H3] 2. Categorize your spending for the past month
To get a true picture of where your money goes each month, you’ll need to see how and where you’ve spent your income over the past month. Grab a copy of your bank statement for the past 30 days, or simply use the Insights feature in your N26 app. It automatically sorts all your transactions into categories such as Salary, Food & Groceries, Leisure & Entertainment, and more.Now, split all your expenses into the three categories: needs, wants and savings. Remember, a need is an essential expense that you can’t live without, such as rent. A want is an additional luxury that you could live without, such as dining out. And savings are additional debt repayments, retirement contributions to your pension fund, or money that you’re saving for a rainy day.
[H3] 3. Evaluate and adjust your spending to match the 50/30/20 rule
Now that you can see how much of your money goes towards your needs, wants and savings each month, you can start to adjust your budget to match the 50/30/20 rule. The best way to do this is to assess how much you spend on your wants every month.According to the 50/30/20 rule, a want is not extravagant—it’s a basic nicety that allows you to enjoy life. As cutting back on your needs can be a complex and challenging task, it’s best to work out which of your wants you can cut back on to stay within 30% of your take-home income. The more you reduce spending on your wants, the more likely it is that you’ll be able to hit your 20% savings target.
[H2] 50/30/20 rule spreadsheet
While our 50/30/20 rule calculator can provide a general overview of your ideal 50/30/20 rule budget, a 50/30/20 rule spreadsheet is a good option if you’d like to create a more in-depth budget.Spreadsheet software such as Microsoft Excel, Google Sheets and Apple Numbers all offer premade templates to help make spreadsheet budgeting easy. You can find plenty of free online 50/30/20 rule spreadsheets that are compatible with whichever program you’re using.
[H3] Budgeting made easy
Visualize your daily expenses and savings to help you make the most out of your money.Try the budgeting calculator
[IMG: Spaces tile in N26 App.]
[H2] Make the 50/30/20 rule automatic with N26
Budgeting methods can help you feel more reassured and in control of your financial picture. But it also helps to have financial tools that can help you along the way. At N26, we want to help you reach your budgeting goals without breaking a sweat. Access your money from anywhere with your 100% mobile savings account, and get instant push notifications for an up-to-date picture of your finances. What’s more, your free Spaces sub-accounts can help you track multiple savings goals, while N26 Insights will automatically categorize your spending for you to help you keep on track.
[H3] Relevant Links
Buying a carHow much does a wedding cost?Buying a houseMoving in with your partnerHaving a babyGetting a dogGoing on a sabbaticalMoving to a new countryChanging jobsStarting your own businessHow to save for retirementHow to save money for a tripHome renovation
[H2] Find similar stories
how to budgetbudgeting tipshow to savedaily savingsBY N26Love your bankRelated Post9 budgeting apps to help your money go further9 min readHow to save money for a trip in 10 simple steps11 min readWhat is a term deposit and how does it work?9 min readHow to choose the right type of savings account10 min readHow do savings accounts earn interest?6 min read
[H4] Related Post
These might also interest you
[IMG: Budgeting tools to get your finances on track.]
BUDGETING
[H4] Budgeting tools to get your finances on track
Budgeting tools demystify the budgeting process. Read on to find out how.7 min read
[IMG: What to include in your family budget.]
BUDGETING
[H4] What to include in your family budget
Budgeting for the family can feel like a chore, but with a few simple adjustments, it can also be empowering! Read on to discover how to create a family budget the easy way.5 min read
[IMG: Moving in together: tips to manage monthly expenses.]
BUDGETING
[H4] Moving in together: tips to manage monthly expenses
Moving in with your partner means budgeting together. Read our guide on how to budget for your new home and live in harmony.5 min read
[IMG: Budgeting tools to get your finances on track.]
BUDGETING
[H4] Budgeting tools to get your finances on track
Budgeting tools demystify the budgeting process. Read on to find out how.7 min read
[IMG: What to include in your family budget.]
BUDGETING
[H4] What to include in your family budget
Budgeting for the family can feel like a chore, but with a few simple adjustments, it can also be empowering! Read on to discover how to create a family budget the easy way.5 min read
[IMG: Moving in together: tips to manage monthly expenses.]
BUDGETING
[H4] Moving in together: tips to manage monthly expenses
Moving in with your partner means budgeting together. Read our guide on how to budget for your new home and live in harmony.5 min readBack to Blog