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Luke, 26, is a tech support engineer based near Leeds, and he lives with his partner in a rented flat. Luke is currently saving towards a deposit on his first home and has made small changes to the way he manages his finances to help him save money without having to think about it.
By automating his saving through round ups and IFTTT, Luke has become more consistent with putting money away and feels more responsible as a result. Passive saving means he can watch his savings grow gradually each week, making him less inclined to withdraw his money as he edges closer to his goal.
I used to have quite a rigid approach to saving
Before I joined Monzo in 2018, I had a Direct Debit that put £200 in a Help to Buy ISA. Then at the end of the month if I had money left over I’d put in whatever was left. I didn’t have as much control over money because once I got paid, the money would just gradually dwindle down over the month.
Now when I get paid, I set myself a weekly spending budget in Monzo. I’m also saving constantly. Every other day or more, Monzo is adding money to my Pots. It’s lots of little days that add up overall.
I’m currently saving for a house deposit, which is a pretty hefty goal
At the moment I’m saving about £450 a month. I have a Help to Buy ISA and a Direct Debit leaves my account before I even touch my wage. I combine this with using round ups and IFTTT to help me save with Monzo.
I saved £200 in a year using round ups
Using Monzo to round up each transaction to the nearest pound really adds up over the year. You can easily save an extra £200, which I find helps for things like Christmas. I let all the round ups go into a Pot called Skin Suit, named after the lycra I wear as a road cyclist.
Then at Christmas I dip into it and just reset it every year. I like that once you set up round ups, you can forget about it. You don’t really miss the small amounts, 50p or whatever, so it works really well. It took me about a year to save £200.
I saved £300 by riding my bike using IFTTT in a year
I’ve also got an IFTTT set up to automate more of my savings. Each time I go for a bike ride, it puts 50p from my main account into my Skin Suit Pot. I use a Garmin device and the Strava app. Whenever I go out for a bike ride, the Garmin automatically syncs with Strava and tells IFTTT to move 50p into the Pot. I saved about £300 in a year from the bike ride challenge.
There’s just over £200 in my Skin Suit Pot at the moment. I also have a Pot called Twitch. I do live streams on Twitch and any money I get from it goes in that pot. At the moment I've got £71, which isn’t much but it’s a start.
I have a Side Hustle Pot as well, for money I get from things like selling artwork, online graphic design and buying and selling things from charity shops. There’s just over £60 in there right now.
I love the ease of automatic saving and the fact I don’t have to think about it
Because the way I save through Monzo is so passive, I see it as free money, even though it's coming out of my account. I don't really have to do anything, other than do some exercise, which I’d be doing anyway. It's just an extra incentive. It'll add up considerably if I cycle enough. There are health benefits as well.
I like to see my money growing gradually and when it's in there, I try not to withdraw it unless I absolutely have to. That's something I'm very good at. I'm a lot more responsible because of Monzo. After the work I've put in to save up, I don't want to lose it, especially given my goal to get on the housing ladder.
I’m often inspired by how others use Monzo
More people talking about money is always a good thing. I’m a member of the Monzo Saving Squad and I like looking at what other people do with Monzo. I originally learned about IFTTT in that group. I saw someone doing it and then I adapted it to how I'd like to use it.
I’ve become more conscious of what I’m buying at the supermarket
Lots of little things are going up in price constantly at the moment because of the cost of living crisis. I'm purchasing things more smartly than I was before. Before, I’d just willy nilly buy anything, even simple things like butter.
We used to buy Lurpak and all the expensive brands but I’ve swapped that for Clover and other cheaper brands. Little things like that do add up.
The advice I’d give to others with a savings goal? Set targets and don’t be swayed by peer pressure
Setting small targets helps to keep you on track. For example, ‘This year I want to save £4k’.
I’m also good at not giving in to peer pressure. A lot of people say I’m stingy with my money, but it’s important for me to hit my target so I don’t spend more than I need to. I'm happy with my spending. I still go out and do things, but I watch what I spend.
Some people might spend hundreds of pounds at the pub, whereas I’ll go with the mindset of ‘This is how much I've got.’