Exploring my financial habits

Your role in the economy

1. You should set clear financial goals for yourself to prepare for the future. Ideally, put aside money for unexpected expenses (an amount of around three months’ net pay is recommended). Try to reach the goals you have set for yourself. → https://finanznavi.gv.at/my-topics/saving-and-investing/ the-difference-between-saving-and-investing

2. Look for alternative offers before buying anything. Especially in the service sector, you can often renegotiate the conditions. You should also regularly look through existing contracts and check the conditions. It may make sense to switch providers. → https://finanznavi.gv.at/my-topics/managing-money/spending-and-consumption

3. A 24-hour rule can help you avoid financial impulse purchases. For larger purchases (e.g. costing more than EUR 50), it makes sense to think it over for 24 hours before making a purchase decision. → http://finanznavi.gv.at/my-topics/managing-money/spending-and-consumption

4. As consumers we also have a say in which goods and services are offered, and under what conditions they are produced. Keep this in mind as you critically question your purchase decisions. → https://finanznavi.gv.at/my-topics/our-economy/your-role-in-the-economy

1. Which payment method you use is up to you. However, keep the advantages and disadvantages of the individual methods in mind. Many payment service providers offer the option of buying things immediately but paying for them later (e.g. by credit card, or under a “buy now, pay later” arrangement). The important thing here is to always keep an overview. → https://finanznavi.gv.at/my-topics/money-and-payments/your-payment-options

2. When making financial decisions, take into account current interest rates and think about how they might change. Interest on savings deposits and yields on investments on the capital market should, if possible, be higher than inflation (keep in mind the real interest rate). When you take out a loan, it is important to compare offers and make sure that you can repay it. → https://finanznavi.gv.at/my-topics/money-and-payments/money-as-a-means-of-exchange

3. Exchange rates can be subject to strong fluctuations. Assessing the cost of loans in foreign currencies is even more difficult than for your own currency. You should keep this risk in mind. → https://finanznavi.gv.at/my-topics/money-and-payments/money-and-currencies

1. With a (digital) budget plan you can get a good overview of your income and expenses. You can either simply write everything down on a piece of paper or use your e-banking app. → https://ffinanznavi.gv.at/my-topics/managing-money/tracking-your-finances

2. Managing to have money left at the end of the month is not always possible. But you should still try to keep an eye on your expenses. In the long term, it would be a good idea to put aside a small monthly contribution to your financial provisions for the future if possible. → https://finanznavi.gv.at/my-topics/planning-ahead-saving-for-retirement

3. Ideally, you should only buy things when you have enough money saved up to afford them. However, this is not always possible, and if you make use of a payment option that allows you to pay later, it is important to keep an eye on your repayment obligations. → https://finanznavi.gv.at/my-topics/debt-and-credit/consequences-of-debt-and-ways-out

1. Always try to have a financial cushion for unexpected expenses that you can fall back on at any time. Ideally, you should put aside the amount of three to six months’ net pay to be able to pay for unexpected repairs or medical expenses etc.

2. In addition to your statutory pension, you should start thinking about your retirement provision early on and regularly put something aside for it. The same applies to larger purchases you want to finance with a loan. → https://finanznavi.gv.at/my-topics/debt-and-credit/loans-and-loan-costs

3. You should also find out more about investment opportunities other than savings accounts. An investment on the capital market is also possible with small amounts. It is important that you only invest in products and schemes that you understand. Keep the risks in mind. → https://ffinanznavi.gv.at/my-topics/saving-and-investing/the-difference-between-saving-and-investing

4. Make a conscious decision who you are lending money to with your investment. By doing so, you directly contribute to the way business is done. Environmental protection and sustainability are important factors to consider alongside risk and possible returns. → https://finanznavi.gv.at/my-topics/saving-and-investing/setting-and-achieving-savings-goals

1. Keep track of payments and invoices that need to be paid. If you can’t pay your bills on time, you risk becoming overindebted. Please consider getting advice and help from a debt counseling center. → https://finanznavi.gv.at/my-topics/debt-and-credit/debt-and-overindebtedness

2. For larger purchases that you would like to finance with a loan, inform yourself thoroughly about the costs, terms and conditions. Above all, keep an eye on the interest rates (variable versus fixed interest rates) and look at several offers. → https://finanznavi.gv.at/my-topics/debt-and-credit/loans-and-loan-costs

3. When financing a purchase with a loan, make sure that you can use the purchased product longer than you have to make repayments for it (for example, you should not need to finance a car for 20 years). Otherwise, there is a great risk that the repayment installments will overwhelm you at some point.

1. Think about the financial risks you face in your life. A risk matrix can help you. Based on such a matrix, you can decide which risks you want to reduce, avoid altogether or consciously take, and you can also make yourself aware of the consequences. → https://finanznavi.gv.at/my-topics/dealing-with-risk

2. Use the risk matrix to decide which financial risks you want to cover with insurance. Find out more about possible insurance policies from experts and make sure to get several offers. → https://finanznavi.gv.at/my-topics/protecting-against-risk-through-insurance

3. Investing on the capital market is one option to make financial provisions for the future. Don’t invest all your money into one single product and try to spread your risk by investing in different financial products (portfolio strategies). → https://finanznavi.gv.at/my-topics/risk-diversification-for-investments

1. Financial decisions have a big impact on the lifestyle you can afford right now and in the future. Talk to those around you about money matters and inform yourself thoroughly before making any decisions. Invest only in products that you understand. → https://finanznavi.gv.at/my-topics/saving-and-investing/fundamentals-of-investing

2. Keep in mind that the individuals or companies advising you may be pursuing interests of their own. If an offer sounds too good to be true, it usually is. Be careful with suggestions on social media from influencers, for example. There are reliable and unreliable ones. → https://finanznavi.gv.at/my-topics/consumer-protection/professional-financial-advice

3. It is especially important to use secure passwords when shopping online and using online banking services. Don’t just click on any links in e-mails and text messages. If you feel something is off, contact your bank directly. Your bank will never ask you for your personal details via e-mail, telephone or text message. → https://finanznavi.gv.at/my-topics/consumer-protection/protection-against-financial-fraud