If you answered less than 3 on the test questions, it indicates that your current financial situation or attitude towards money is still developing. The good news is that right now is the perfect time to start fresh and build a strong financial foundation. Below you will find practical steps and recommendations tailored to the situation in Latvia to help you improve your financial well-being step by step.
1. Understand Your Current Situation
Write down your income and expenses. Simple, but powerful. Use a planner, an Excel table, or free apps (e.g., "Money Tracker", "Spending Tracker", "Bilance") to start tracking your spending. This way, you will see where your money goes and can make informed decisions.
2. Create a Safety Cushion or Savings
Remember, not just "saving," but saving with a goal. For example, a trip, a down payment on a home, an emergency fund, or a course to learn new skills. A clear goal will give you motivation to continue.
In the place where you save, write down your “Goal” – what you plan to save for: at least 500–1000 euros as a small reserve. If that seems impossible right now, start with 10 euros per month. Open a separate savings account (e.g., Luminor savings account, Swedbank targeted savings) and set up an automatic monthly transfer.
3. Develop Your Knowledge
Many free resources about financial literacy are available:
4. Invest in Knowledge and Foundations
Start with the 3rd pension pillar or small investments using platforms like "Indexo" or "Mintos," where you can start with 10-20 euros. What matters is not how much, but HOW EARLY you start.
*If you start investing 20 euros per month at age 25 and continue until age 65 (40 years) with an average 6% annual return, you will accumulate around 40,000 euros.
*If you start the same at age 35, the accumulation will be only about 20,000 euros — half as much, even if you invest the same amount!
Conclusion: even a small amount invested earlier can yield significantly greater results than a larger amount invested later.
5. Train Your Financial Confidence
If you currently think “money isn’t meant for me” or “I will never save up,” these are just habitual thoughts. Change them gradually by replacing them with: “I am learning to manage money better,” “I am starting to build my financial foundation.”
Practical Task:
Remember: you don’t have to be a “perfect” financial guru to start improving your situation. The important thing is to start. Small steps lead to big results.
P.S. When you fill out the questionnaire and answer the questions, don’t forget to enter your data and return to the homepage to receive personalized advice and next steps!