The end of the year and the beginning of a new one always bring promises: I will start saving, I will start investing, I will stop emotional shopping. But why wait until 1 January?
Financial peace of mind starts with the first step, and the best time for that step was yesterday. The second-best time is today.
At the bank, every day, we see how small decisions grow into big successes. This is also confirmed by Annika Goroško, Head of Retail Banking at LHV, who says that financial habits are like muscles that only grow when trained consistently.
How to turn micro into macro?
The most common myth about saving is that you have to earn a lot to even get started. In reality, it’s the little habits that make a big difference – the ones that don’t require effort or a special reminder.
LHV’s micro-saving service rounds up each debit card payment to the next whole number and automatically transfers the difference to your Savings Account. And if you want to give your savings a boost, you can multiply that amount. This way, you won’t even notice the amounts you contribute, but the difference in your Savings Account will be visible.
You can use micro-saving, micro-investing and micro-donating at the same time. With micro-investing, you automatically transfer up to 1 euro to your Growth Account with each payment. An average micro-investor grows the portfolio in this way by 1.1 euros per day, i.e., nearly 400 euros per year, and simply by making everyday purchases.
So, it’s in your hands to turn micros into macros. It takes one minute to start, but ... much less than you think to see the results.
Act now to maximise the 3rd Pillar, deadline – 29 December
The end of the year means one thing: there’s still time to get your 3rd pension pillar up and running. Next year, the state will refund you the income tax on the amount you have invested in the 3rd pillar. You can get back up to 15% of your gross income, or up to 6,000 euros per year.
You can make payments at a pace that suits you: one by one or once a month. If necessary, you can pause payments. You can also make withdrawals at a time that suits you, considering the tax rules in force.
The Pension Centre recommends making a transfer to the 3rd pension pillar by no later than 29 December. This way, it will still count as an investment for this year.
Let’s talk about digital hygiene and literacy
Financial literacy means not only growing money but also protecting it. Unfortunately, fraudsters are becoming smarter, and the best protection against them is strong prevention. Annika Goroško, Head of Retail Banking at LHV, underlines: “Security starts from limits. The smaller the potential damage, the stronger your position will be.”
Practical steps you can take now:
Set lower limits for bankcards and payments. For a larger purchase, you can temporarily increase the limit in an instant on the mobile app.
Check what limits you need in the first place. If you never use cash, it is worth setting this limit at 0 euros.
Keep your daily account and savings separate, as a card account with a smaller account balance is more difficult for a fraudster to attack. For active online shoppers, we recommend opening a separate account with a card for online purchases.
For online shopping, prefer using a credit card, since it is not directly connected to your daily current account.
The end of the year is the time when everyone is thinking about what to do again and better in the new year. But you don’t really have to wait. What matters in a smart decision isn’t when you start, but that you start.
The most important financial decision is to get started. Even the smallest step today is better than the biggest promise tomorrow.
Start today.
