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Ricky Zalman, 32, is an actor based in Surrey who also works in recruitment in a drama school. He rents a flat alone and earns around £36k a year.
Ricky’s relationship with his money now is unrecognisable compared to what it was like four years ago.
He once was so scared to check his banking app that payments for basic necessities like food would often be declined. He overspent on socialising and gifts until he found himself with £7-8k worth of loan and credit card debt.
With Monzo’s help, he paid back his debt and started saving money for the first time. He now uses Monzo Premium to budget, save and keep track of every penny that comes in and out of his account. Saving little and often is his preferred approach to growing his money long-term.
Monzo Premium is £15 a month, 6 month minimum, must be 18-69 years old, Ts&Cs apply.
I used to have a very toxic relationship with my finances – I wouldn’t even check my banking app because the thought of looking made me feel sick
I never felt like I had control over my money, my income or my spending. I used to hate checking my online banking apps so much it used to make me feel sick.
I had two credit cards and a loan I was paying off, but I never knew how much money I had in my account at any one time. The only way I’d know that I'd run out of money or gone into my overdraft, was when I’d try to make a payment or withdraw money and I was told I had insufficient funds. I didn't even know how much I owed in total.
It was embarrassing. Sometimes I wasn’t even doing a big shop, I was buying something small or trying to withdraw £5 or £10. I didn't really know how dire my financial situation was until I was getting those messages quite frequently.
I overspent on socialising and gifts until I was in £7-8k worth of debt
Being young and earning money for the first time was quite exciting. I was socialising a lot and working in a particularly social environment, so I was always going to the pub after work and seeing people at weekends. I would spend lavishly on birthdays and Christmases because I felt like I had a bit of money and I didn't know how to budget. I was overspending and living well above my means.
The turning point was realising I often didn't have any money when I needed basic things during the month, like food and shopping. I'd spent it all, whether that was on socialising, on gifts for people or whatever else. I realised I had no other money to my name because I’d either spent it or it went towards repaying my debts.
Monzo sounded like a great way of allocating money to particular things, which I’d never done before
My friend was an early adopter of Monzo and he explained he was using it to help him budget and save money. Allocating money to particular things, like if you were going grocery shopping, sounded like it would help me be more in control of my finances.
Having greater visibility and control over my money helped me curb my overspending
For the first time, whenever I used my debit card I’d get a notification to say how much I'd spent. Without even having to open the Monzo app, I already had an idea of how much I was spending. I felt like I was in control of every penny that was going out of my account. Even if I wasn't physically using my card, if I had a standing order or direct debit, I still had an idea of what was leaving my account, where it was going and how much it was.
I liked how different Monzo was from other banks. I’ve been with other banks where the terminology was quite difficult to understand. It’s almost quite fun to navigate my way around and experiment with different features like Pots and Salary Sorter. I felt like I had more control because it’s more user-friendly than other banks.
Pots helped me clear my debts
I had a Pot where I’d transfer the payment every month for my credit card until I cleared it.
Being debt free and knowing my money wasn't going towards repayments was a great feeling. I had more money that I could either put towards one of my other saving goals or treat as disposable income to spend on things like groceries.
I’d never had savings before Monzo and for me, saving little and often has made the biggest impact
I’ve been able to start saving by being more responsible with my money, not living beyond my means and using Monzo’s budgeting features.
I find it easier to save small amounts. It's the little and often that makes the biggest impact. By putting away smaller amounts, I don't feel like I'm missing it from my main account. Being able to hide Pots has also been fantastic because it's out of sight, out of mind.
I've used IFTTT to do the 1p Challenge a few times. By the end of the year, you end up with nearly £700, which I’ve used to help kickstart my finances after Christmas, for example.
It was quite hard psychologically trying to save for the first time.
Eventually, I was able to move a couple of hundred aside each month. But it was quite hard to get into the mindset of wanting to save and then actually doing it.
I’ve got four Pots and I hide them all, so my main account is all that’s visible when I open Monzo
I’ve got one Pot to save for one of my best friend's weddings next year. I also put £30 aside every month for Christmas, which I spend on presents and helps me budget. I’ve created a new Pot for next year's iPhone – instead of paying monthly I thought I’d try to pay for it outright. I also have a round ups Pot.
With Monzo Premium I’m able to link virtual cards to my Pots. I have to buy Christmas presents from my Christmas Pot, for example. This means I know all the Christmas presents are coming out of one particular Pot. I can then look back at that Pot and see all the transactions, know every present I bought, where I bought it and for whom. I can also make sure I’m spending within the budget I set myself.
Monzo Premium is £15 a month, 6 month minimum, must be 18-69 years old, Ts&Cs apply
I use Monzo Flex to spread out the cost of bigger items, like a new MacBook
I used the three-instalment option to pay for my laptop, so it was interest free. I like that when I use Flex, all my money is in one place. I can log in, see what I've bought and when, and how much I'm yet to repay.
I also like that if you want to pay early, Monzo doesn’t charge you.
Monzo Flex is credit for eligible 18+ year olds. It's always interest-free if you pay in 3 instalments. Or pay in 6 and 12 at 24% APR representative (variable). Ts&Cs apply.
Consider the cost of credit before a purchase. Missed payments can negatively impact your credit score and you may lose the interest-free rate on existing plans.
Representative example: 24% APR representative (variable). £1,200 credit limit. 24% yearly interest (variable).
Like everybody, I've seen a hike in my gas and electricity bills, so I’m being more mindful of my spending elsewhere
Where I was previously putting aside X amount for transport or shopping or groceries, for example, I've reduced that.
Monzo has been really helpful for budgeting. It’s helped me have more control and be in-the-know about how much I've got, so I can cover my gas and electricity bills.
My advice to anyone who’s scared to check their account and doesn't feel in control of their money?
The first thing I did was talk to a friend about my situation and my fears and worries about money. Don’t suffer in silence – talk to someone, whether that’s a friend, family or one of the many organisations and charities out there. There’s no judgement and actually, more people than you can imagine feel the same way about their own finances.
Once you’ve done that, explore ways you can prepare a budget. That's the biggest thing. Having more control over what you spend and where, will give you an insight into where your money is actually going. From there, you can decide what you can or can't afford to spend each month.