Catherine, 31, is a student studying for a psychology master's while working as a part-time staff nurse. Based in Falkirk, Scotland, she rents with her partner and a parent who lives with them part-time.
Her monthly earnings fluctuate between £200 to around £3,000 depending on how much she’s studying versus working. She estimates her yearly income to be between £15,000 to £20,000 a year.
Before getting Monzo four years ago, Catherine’s attempts at saving would fail. Either her money was too easily accessible and she would dip into her account, or the way her savings were presented left her feeling uninspired and unmotivated.
These days, she relies on Monzo’s Trends tab to classify her spending, and categorises her saving into Pots, each with a specific purpose. Both of which have made Catherine feel more powerful, motivated and in control of her money than ever before.
I used to spend impulsively and my attempts to save always failed
My relationship with money before Monzo was awful. I have ADHD and was quite impulsive. Emotional spending was a big thing, and previous attempts at saving never lasted very long.
I’d put money into my savings account, but I could instantly withdraw it. I wasn’t able to set a savings target so I never knew how far away I was from reaching my goals. I even tried the old-fashioned route of having a piggy bank and keeping it somewhere you don't really go. But it would just be a matter of time.
My relationship with money was like, "if I've got it, then it's gone".
Now it’s satisfying to see my savings accumulating
Saving with Monzo is completely different. Being able to separate the different things I’m saving for into Pots has helped me reduce how often I withdraw my savings.
It’s also made it easier to identify where my money’s going and to actually enjoy saving. It’s satisfying to see how Monzo presents my money visually, and to watch my savings gradually accumulating.
Identifying common themes in my spending helps me understand my relationship with money a lot better
The Trends tab helps me understand the peaks and troughs of my expenditure. The way it projects how much money I’d have for the rest of the month, depending on how much I've spent so far, is really useful.
The spending breakdown also helps me understand what my financial priorities are. I go over my transactions and break them down into categories: is it general, self care, expenses, shopping or something else? I can then establish which categories I should make changes to and which ones are mandatory.
Being able to break my spending down into themes helps me understand my relationship with money a lot better. Before, I thought, ‘I'm terrible with money, I have it, and then it's gone’. Now I know that's not how it is and that's not how it has to be. Identifying common themes in my spending has helped me work towards having a better relationship with money overall.
I was spending too much – but not on things that would actually make me feel good
When I realised how much I was spending on eating out, I was like, ‘Okay, I need to reduce that a bit’. I’ve done this by creating a dedicated Pot that has kept me within a set budget of £60 a month on eating out.
I also noticed there was too much money going into shopping, but not enough into personal care. I was scrolling Facebook and buying things from the targeted ads I was seeing. It was just tat. Things like novelty t-shirts for £30 plus postage. Actually, what I need is to put those funds towards therapy.
Now, Monzo helps me identify when I’m emotionally spending, so I know when to rein that back and instead put the money towards something more beneficial to my emotional wellbeing.
I’m using Monzo to help me hit three different savings goals
I'm trying to save about three months’ worth of wages because that's meant to be something you should have. I’ve got a Pot for that and it’s building up over time. Normally I put in about £50 a month but sometimes £10 or £20 if I’ve earned less in a given month.
I’ve also got a Pot for putting money aside to eventually do a PhD and I usually put about £100 into it each month, or £40-50 depending on my earnings. And I’ve got a Pot so I can go travelling eventually. I put anything from £20 to £70 in there depending on what my income is that month.
I’ve also got one for eating out and another for utilities and groceries, as I’m responsible for paying for these in the household. Our utility bills are usually between like £200 to £300 a month and I try not to spend more than £100-£150 on groceries every two weeks.
It’s helpful not having immediate access to the money in my Savings Pots
I take advantage of Easy Access Savings Pots, because they're locked and it usually takes one or two days to withdraw something. You can set a goal for your savings, which gamifies it in a way. When I started putting money aside, I had a goal of getting to £2k and it tells you the percentage of how far away you are from your goal. I hit my goal and it made me want to continue seeing all my percentages go up.
Seeing the interest develop on the amount that's in there is motivating as well. I’ve also enabled round ups so spare change goes straight into my savings. Monzo has made saving a lot more satisfying and enjoyable.
Previously, when I tried to save with other banks, it felt very much like a chore. I felt like, ‘I need to do this thing, but I don't want to do this thing. This thing is really annoying.’ But doing it with Monzo has completely shifted my perspective on it.
You can use a Savings Pots if you have a Monzo current account. Ts&Cs apply.
Monzo has helped me feel a lot more powerful when it comes to money
It makes me feel a lot more involved with money, as opposed to it just being a thing that happens around me. I feel I have more power and control over my money and what happens to it. I know I have the capacity to make changes in my financial life. Monzo started a positive cycle for me that has continued to grow over time.
I’ve cut down my fun money spending to cope with rising bills
Everything has suddenly got a lot more expensive very quickly and money isn’t lasting as long as it did before. Energy bills and the cost of food has skyrocketed.
I’ve reduced the amount I’m spending on entertainment and fun, and am paying more attention to the groceries I’m buying. I’ve switched where I shop from Morrisons to Lidl, Aldi or sometimes Tesco. If I go to Morrisons or Sainsbury's, I stick to the reduced section because the full price stuff is out of reach now.
Don’t use a pen and paper to manage your money if that doesn’t work for you
To anyone wanting more visibility and control over their money, I’d say use banks and the services like Monzo to break it down, stay on top of your money and improve your financial literacy. Don't waste energy writing everything out at the beginning of each month if that doesn’t work for you. It definitely doesn’t work for my brain.
Be clear on your priorities each month and note down the themes of where your spending is going in an average month. Assessing where you can make changes by reflecting on your spending output through Monzo is a really simple way of doing it. You can then re-delegate those funds and look into the savings services that are on offer as well. For me, savings Pots are what started the ball rolling with changing my attitude towards money.