How far does your money stretch?

10-minute budget

You can do a simple calculation of your budget in your head or with your phone, for example. Save it in a place where you can easily find it later. 

Just follow the steps below:

1. Think about how much money you have coming in each month. Add up your salary and all other income. If you are drawing down a student loan, divide the loan amount you have drawn down by the number of months you will be studying and add this amount to your monthly income.
2. Estimate how much money you spend on your essential outgoings each month, such as home, rent, phone, internet, transport, insurance and other fixed expenses.
3. Deduct your expenses from your income. The amount left over should cover food and all other purchases during the month. That’s your spending money.
   
   If your expenses exceed your income, you must rethink your spending. If you can’t cut back on anything, think about whether you could find other sources of income.
4. Try to take control of your spending and plan larger purchases in advance. 

When you know exactly how much spending money you have for each month, you don’t have to worry about making ends meet. If you end up spending a little more than planned during a night out with your friends, you can tighten the purse strings some other day. 

If you want to use a tool to plan your budget, we recommend the Guarantee Foundation’s Penno app, for instanceOpens new window.

Think before you spend

You don’t have to constantly worry about money when you...

1. Eat proper meals. Cook yourself instead of buying ready prepared meals.  You can find easy recipes online. Hearty stews and soups are cheap to make and last you several days. If you’re a student, you should also take advantage of your discount on student lunches.
2. Pay attention when buying groceries. A yogurt that might seem the cheapest may turn out to be more expensive than you thought. This is why it’s good to look at the prices per kilogram, litre or unit rather than the price of the product. Take advantage of offers and deals but make sure you only buy what you need. Wasted food is always expensive.
3. Stay clear of high-end brands. On-trend jeans and luxury bags are nice but you know what you can and can’t afford. Is an expensive impulse purchase worth sacrificing your grocery budget for several days or weeks?
4. Think carefully about your spending. You can find clothes and bags in second-hand shops, borrow them from a friend or even sew some yourself. Take your broken shoes to a repair shop instead of throwing them away. 
5. Cancel all unnecessary payments, such as old subscriptions and gym memberships you no longer need. 

Daily banking made easy

1. Try our banking apps. The easiest way to do your banking is to use our mobile bank. All you need is a smartphone with our mobile banking app and code app, and you can bank anywhere, any time. For example, you can quickly check your account balance on the go – even in the queue at a shop.
   If you want to send money to your friends using just their name or phone number, check out our Siirto app. 
2. Choose the right card for you. Most people have a debit card or a combination card that has both the debit and credit feature. If you pay with a debit card, the transaction is charged to your account soon after you’ve paid. With a credit card you get more time to settle your balance, which gives you flexibility with your finances. Read more in our quick guide “Am I eligible for a Mastercard?”
   
   If your balance has a tendency to stray into the red, it might be smart to opt for a Nordea Electron card. When you use your card, your account balance is checked with every transaction, which means that you should never dip into the red on your account. You can also set daily limits for cash withdrawals and payments so that you don’t accidentally overspend. You can change these limits conveniently in Netbank.
3. Make mobile payments. When you download Apple Pay for iPhone or Google Pay for Android, you can make easy contactless payments in shops by holding your phone close to the payment terminal. 
4. Save money automatically. There are quick and easy ways to build a nest egg without even realising you’re doing it. Monthly saving is a good way of putting money aside automatically over a long period of time. Our digital investment adviser Nordea can help you get started with as little as 10 euros a month. 
5. Chat with us to ask for advice. Our experts are always happy to help you with your finances. Please contact us if you have questions or need support with your financial situation. If you feel like you’re losing control over your finances, don’t resort to payday loans but find out how you can sort out your difficulties instead. Contact us via chat, book an online meeting in mobile bank or Netbank or call us at 0200 70 000.

Are you a student? Read more about the benefits we offer students.

What to do when you run out of money?

Anyone can experience financial hardship if they lose their job, for example. A sudden drop in your income may feel devastating – but just because you’re out of money doesn’t mean you’re out of options. 

You can financially survive big changes in life when you ask for help, calculate your expenses carefully and make new payment arrangements. The most important thing to remember is that you’re not alone. There are people you can talk to, such as your family members or friends.

Contact your bank as soon as possible

If your income drops unexpectedly, please contact your bank and creditors as soon as possible and tell them about your situation. You may be presented with the option of taking a payment holiday or making changes to your repayment schedule, for example.

There’s no need to be ashamed of a cut in your income, as life can throw anyone a curveball. Our advisers are trained to help you deal with changes in your financial situation.

Work out where you can cut back

When you have less money coming in, you need to get a clear idea of what you can afford. Make a list of all your expenses and think about what you can cut back on. It’s inevitable to give up some things until you get your finances back on track.

Protect yourself with insurance

The best way to cope with a change in your financial situation is to prepare for it in advance. If you have a housing loan with us, you can apply for a loan cover or personal life cover for unemployment or temporary disability, for instance.