6 ways to build confidence managing money

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The information in this blog is correct as of 21/02/2023. For the most up to date information check the Monzo app.

Feeling confident managing money might not come naturally. If you didn’t learn how to manage your money at home or school, you may find yourself switching off during conversations about money or avoiding financial news.

And if you’re in a relationship with a partner who’s good with money, you might be able to get by while they sort out the bills. Meanwhile, you’re left still feeling insecure or anxious about your finances.

But having your finances in order can greatly impact your confidence and is a crucial part of a well-rounded life. Here are six tips to boost your confidence when managing your money.

1. Find out where your money’s actually going

Knowledge is power when it comes to money. Not knowing how much you’re spending and saving each month can be stressful. Without being able to visualise your spending, it can be challenging to track your progress and stay motivated to stick to a budget.

The Trends tab can help to demystify your finances by giving you visibility over your spending. Here’s how to get started:

  • Go to Trends in the bottom navigation bar of Monzo

  • Balance shows a total of the money coming in and out of your account. Seeing what you’ve earned, spent and saved can help you pace yourself throughout the month. It also tells you how much you’ve got left to spend after bills and upcoming payments, so you don’t find yourself short.

  • Spending shows a breakdown of your transactions separated by category or merchant. Tap each category or merchant to see the individual transactions.

Monzo balance and spending screen

2. Set achievable financial goals and commit to them

Setting realistic goals and reaching them is a surefire way to boost your confidence in anything, including managing your money. Realistic is the crucial word here if you want to increase your self belief.

What’s realistic for you will depend on a whole host of things – like how much money you make, your essential costs and the lifestyle you want to live. This might be saving £1 a day until you’ve got enough for that sought-after pair of jeans, or spending no more than £100 each month on eating out.

Here’s how to set realistic spending targets in Monzo:

  • Go to Trends in the bottom navigation bar of Monzo

  • Tap Target at the top of Trends

  • Choose the accounts, spending categories and monthly start date you’d like to track

  • Set a monthly spending target 

  • Use the interactive graph to track your spending 

  • Scroll down to see a breakdown of your spending by category

Monzo Target screen

3. Talk to others about money

Once you realise that other people have similar insecurities, struggles and questions about money, you’ll feel emboldened to talk openly about it and educate yourself without shame.

Be sensitive and understanding when broaching the topic for the first time and don’t be afraid to ask “stupid” questions. Others will be grateful for it.

For a wider discussion, join the Monzo Saving Squad and get support from thousands of other savers. It might motivate or put you at ease hearing about other people’s experiences.

Monzo Saving Squad

4. Use notifications to take the mystery out of your spending

Like Trends, turning on instant spending notifications can make you more aware of your spending. When most of us were spending with cash, it was easier to see your money going down. Notifications can give you the same awareness, making you feel more in control.

You can choose which notifications you get from us in your settings:

  • Tap on your display photo in the top left corner of the Home tab

  • Tap the Settings cog in the top right-hand corner

  • Tap Notifications

  • Enable notifications for Transactions and payments (to stop getting notifications each time you make a payment, toggle off this field)

5. Get your savings in order with Pots

Being able to see your money separated into different Pots which each have a purpose, rather than seeing it as one big number, can be extremely freeing and reassuring.

Pots can give you the confidence that you’ve got your basics covered, rent, bills, monthly savings (like your emergency fund), before you start spending on nice-to-haves. Then you’re less likely to feel guilty when you do dip into your fun money Pot and treat yourself to a manicure or a few beers at the weekend.

To create Pots to start dividing up your spending:

  • Tap on your display photo in the top left corner of the Home tab

  • Scroll down to the Your Account section

  • Tap Create a Pot and choose between a Standard or a Savings Pot

  • Name the Pot and add a fun custom image that will motivate you regularly contribute to it

  • Put some money in now, or wait until later

With the new Instant Access Savings Pot, there’s no minimum deposit and you can access your money straight away. Meaning you can grow your savings without having to wait around for your money when you need it. 

How to create a Pot

6. Sort your salary as soon as you’re paid

Whenever you receive a payment over £100 via BACs or FPS, you can use Salary Sorter to separate it between spending money, savings and bills. Giving you confidence that you won’t accidentally spend your rent money or leave yourself without enough money for bills.

To do this, you’ll need Pots already set up. Simply tap the payment once it arrives in your account and select Salary Sorter.

Salary Sorter

If you received a £2,100 payment, for example, you could put £900 straight into your rent Pot, £600 towards bills, direct debits and subscriptions, £200 into your savings, £200 towards a holiday and keep the remaining £200 in your current account as spending money.

You can even tell Monzo to remember these preferences when you’re paid from the same sender again. You can always edit the amounts at a later date.

Money confidence is like a muscle – it takes time to build, but once you’ve got a solid foundation using tools like the ones mentioned above, it’s relatively easy to maintain. Perseverance and a long-term mindset are key.