If you tried to stop having fun and saved every last penny instead, how long would that last? For most of us, not very long.
If saving feels like an unbearable chore, then sooner or later, you’ll be tempted to break the habit. On the other hand, saving money while keeping some aside to enjoy yourself could help make the habit last a lot longer.
Striking a balance between spending and saving means you can enjoy your life now – and in the future.
So if you’re looking to curb unnecessary spending – without giving up absolutely everything you enjoy – read on.
Think about what brings you joy, and build it into your budget
To help you find the right balance between saving and spending, sit down and work out a budget.
When you create your budget, take a look back at what you’ve spent money on recently and think – did you actually enjoy that thing? Was it worth the money? If the answer is yes, then great! But it’s also possible to end up spending money out of habit or boredom. Working out what’s actually worth spending money on can help you cut back on the things you don’t particularly enjoy, which is cash you could put towards savings.
Make every pound count
Once you know what to spend your money on, you can start creating Pots with Monzo. Pots are a neat way of giving your money a purpose – you use them to set money aside from your main bank balance for a specific goal. You can create Pots for things like rent and bills, but you can also have them for meals out or going to a gig – whatever it is you really enjoy.
If you want to take it a step further, you can create a zero-sum budget. This means giving every pound you have a purpose – in other words, creating a Pot for every category you’re spending money on. Once that Pot runs out for the month, you know not to spend any more money on it. This is a great way to protect yourself from accidentally overspending.
Start saving on payday
One of the best ways to save money is to do it as soon as you get paid. However, putting money aside just for the sake of it isn’t that exciting. Focusing on what you’re saving up for, on the other hand, can help you feel more motivated. It might be a deposit on your first home or a trip you’re looking forward to.
Once you have your goal in mind, you can create a Pot with Monzo. Give your Pot a name and photo to remind you of what you’re working towards. You can even hide or lock it in case you're tempted to put your hand in the cookie jar.
To help you grow your savings, you could also open a Savings Pot. This is like a regular Pot, with the added bonus that you could earn interest on your money. See the different accounts on offer and the latest savings rates. You need to have a Monzo personal current account, be 18+ and Ts&Cs apply.
When you get your salary paid into your Monzo account, you can use the Salary Sorter to organise all your money into Pots and build your Savings Pot the moment payday arrives.
Speed up your saving with round-ups
Once you’ve set up a Pot with Monzo, you can also turn on roundups. They’re a great way of putting your (virtual) spare change to good use. Essentially, every time you spend, we’ll round up your purchase to the nearest pound and add the extra money to the Pot of your choice. So if you buy a coffee that’s £2.79, we’ll round it up to £3 and put the extra 21p in your savings.
Saving these small amounts regularly is an excellent way to reach your goals faster. So every time you spend, you’re actually saving a bit of money for future you too. And with Monzo Plus, you can use advanced roundups, helping you save 2x, 5x or even 10x the amount each time. (Monzo Plus is £5 a month. There’s a 3 month minimum, you have to be 18+ and other Ts&Cs apply).
Talk about saving with your friends
If you feel like you’re having to spend, spend, spend to keep up with the group, you’re probably not the only one. Your pals might be trying to curb their spending or save some money too. Consider talking to your friends and see if anyone’s in the same boat.
Saving doesn’t have to be a solo activity. When you talk about your saving goals with friends, you can hold each other accountable, support each other to reach your goals and celebrate your progress.
Start saving with Monzo today and see how you can do it while still enjoying yourself.