I’ve had Monzo for a few years, but now I have all these zingy pots and virtual cards going on (Monzo Plus), I’m losing track a little!!
Do pots count as “committed spending”? I’m trying to work out what I should and shouldn’t be including in my budget targets.
Many thanks!
Transfers, or payments to Pots, are excluded from your spending in Trends.
So you’d accommodate your actual bill costs IE rent £600, Netflix £10, so the £610 to Pots won’t need factoring in, but the overall spend of £610 would.
Hope that makes sense.
Thank you for your reply. I use Monzo for my spending money only and using the pots to build up money to pay for yearly costs such as my annual train ticket. So just to check I’ve got my head round what you have said.
If I send in £600 to the monzo account and £150 of it goes into a pot to save up for travel costs. I should say that my budgeting target is £450.
Is that correct?
Yes, that’s what I’d do, personally.
But, it also depends on how you’d then later account for the purchase of your train ticket, which may be to allocate it to a category that is excluded, otherwise the month that you buy your train ticket you’ll need to vastly increase your budget (to include the ticket cost) to avoid making it look like you were over budget.
Oooh that’s a point. I guess excluding it would be the way to go. Seems like with any yearly expensive cost, it’s all going to go wonky for that month!
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