Millions of Germans overdraft their accounts every year in January and some fall into a debt circle. The Numbrs Analysis feature with its many useful functions supports you in avoiding debt. By providing you with fact-driven insights, you can improve your spending habits and make informed financial decisions independently
Many bills are due in January, like the car tax and car insurance. You may be able to pay your bills by overdrawing your account but be aware of overdraft fees which average as high as 8,29 % in Germany. Here’s a simple guide on avoiding debt with the help of Numbrs:
Automatic Categorisation of your transactions
Numbrs automatically categorises your transactions. We decided on what categories to use after intense studies and only included the ones that are intrinsic to your wealth management. A good example is the category “Fees”. Fees can be anything from cash withdrawal fees, overdraft fees, the account management charge to credit card fees. By receiving these unbiased insights from Numbrs, you may learn that you are spending a lot on fees which may lead you to switch to a better bank account or credit card that charges less. There are many providers that offer fee-free bank accounts and credit cards today.
Some expenses are unavoidable like paying your rent and your phone bill. Others may be easier to reduce like cloth shopping and eating out. By only cutting back a little bit in some categories, will accumulate more in total savings and you’ll have a lot more on the side and don’t have to give up things you are really passionate about like going to the gym or traveling. With the straightforward expenses overview of the Analysis feature, detecting unnecessary costs and determining saving potential becomes easy.
Taking Control with Budgets
By looking at the data provided in the Analysis feature, a quick look at your past expenses gives you an estimate on your budget amounts, and you can make a decision on what budgets to create. For example, if you’ve spent around 150 € on groceries in the past, merely enter about the same amount as a budget for groceries. Do this for all regular and irregular expenses, and you’re on track to getting on top of your finances.
Track your finances with the Notifications feature
The Numbrs Notifications feature is designed to keep you informed about important events like the salary payments and notify you about your budgets and saving goals. Once you’ve set up budgets, the Notifications feature gives you a heads up when you’ve reached 80 % and when you’ve exhausted your budget. It also informs you when your balance is getting low and gives you a daily summary of your incomes and expenses. All of the notification types can be personalised to your individual preferences. With Notifications, Numbrs takes a lot of work and time off of your shoulders as you won’t have to check your budgets and balance continually.
Create Saving Goals to plan ahead
Improving your spending habits with budgets, having an excellent overview of all your bank accounts in one app, and informing you regularly about your financial state will make your life a lot easier. Now it’s time to think about your goals. A new car, a trip around the world, planning your future home — whatever it may be you want, Saving Goals are the perfect tool to reach your goals faster and without much effort. Start slowly with short to mid-term goals while you improve your spending habits and add more once you’ve optimised your expenses.
Numbrs never tells you what you should or shouldn’t do. We provide you with insights by showing you the facts, to empower you in making unbiased financial decisions. Just a little bit of time spent on managing your expenses will fundamentally change your overall financial state. With Numbrs it only takes you a couple of minutes to get on the right track. Thinking about wasting your hard earned money on overdraft fees might be a good motivation starter for — you wouldn’t give away money to any other institution, so why would you make an exception for banks? The positive impact can be felt within a single payment cycle, and you will have a much more relaxed financial life which also has a positive effect on your overall quality of life.