This is a guest post written by Denise Haverkamp.

During the first COVID lockdown, I started to panic about losing my job amidst the growing economic crisis. Suddenly, it struck me: I had no concept of financial planning. Even worse, I had no idea how to fix my financial unpreparedness. But, as they say, pressure makes diamonds, and that critical moment created the idea for my startup: “finance, baby!” Today, we’re an educational platform specializing in helping women structure their finances and prepare for the future. 

Here are the first steps to start your financial planning journey:

1. Set Up an Emergency Fund: I recommend creating an emergency fund for unexpected situations. This safety net is hugely reassuring in case of an emergency.

2. Create a Budget: Set up clear budgets and enjoy the feeling of achieving your financial goals.

3. Start Investing: Begin with small investments — contributions as little as €25 can make a difference over time. Investing can reduce anxiety about your financial future and help you achieve your goals.

My personal financial management tips:

• Conduct an Honest Financial Overview: First, I had to admit where I stood financially. I took time to analyze my finances thoroughly — it’s a sobering but valuable experience to get you started with financial planning.

• Set Savings Goals: I set aside a designated amount each month for emergencies and investing. Over time, I developed a sense of security through this regular saving routine. Thanks to these concrete savings goals, my financial confidence improved because I had a measurable system to rely on. 

• Switch Bank Accounts: Finding a new bank improved my finances and made me feel more comfortable with my money. I used a simple, automated transfer service that handled everything for me.

The benefits of financial management

Finances correlate to our overall well-being. Money means security — both for our basic needs and fulfilling our dreams. Once I realized that active financial management can benefit my mental health, it boosted my motivation to meet my goals and achieve new milestones. 

My secret: save and invest responsibly

Over time, I developed a functional finance routine that I could maintain. I started with a small savings account and, after a few years, built a nice cushion to fall back on. Plus, as my savings grew, so did interest rates. By creating small, meaningful adjustments to my daily routine and finding a reliable financial plan, I’m confident that I can reach a new standard of living.