Feature request- Make money by being on a budget!

Feedback & Ideas
1

Hi,
Without knowing anything about how Monzo makes profit, I once been tipped off that most physical Banks make a profit by using their customers savings in the stock markets and other investments methods.

Personally, I don’t mind letting the bank make profit by using my funds as long as its secured, legal and guaranteed that my money will be always available to me when needed.

Maybe if the Banks will offer some decent revenue back to the customer for its (the Bank) investments, More users will be willing to save money.

Given the fact that Monzo have over 1,000,000+ installs (probably not much less are active users) there is a BIG potential to make a profit both for Monzo and its customers which in return will increase the user base. Like a snowball but in a good sense :slight_smile:

I recently read a chapter in a brilliant book about how to best split your monthly income for best financial behaviour.
You can find the book here:

In this chapter the book recommend splitting ones income in this way:
HOW MUCH SHOULD ONE SAVE?
Savings Account……………………… 20%
Living - Clothes, Food and Shelter… 50%
Education……………………………… 10%
Recreation……………………………. 10%
Life Insurance………………………… 10%
100%

The average yearly income in the UK is £29,400 where 20% is almost £6000 per user!
Multiple by number of users and I think there is a good business here :slight_smile:

So by suggesting the user to save and well-behave financially all parts can benefit.

My suggestion is to add a Categorised budget like in the suggestion above where the user can easily see in advance how much he can spend on each category. Simple as that.

By having this view as a user I can see where I need to improve in order to achieve the suggested budget!

So customers will feel that Monzo care for their money which will increase the user base which increase the profit! Nice ha??

P.S.
I highly recommend reading the book :slight_smile:

2

Monzo have 4,000,000+ customers not 1m and I seem to recall that they don’t invest your money :slight_smile:

2 Likes
3

tl;dr - give us a way to customise the budget items aka give us custom categories?

4

I’m incredibly surprised this first post wasn’t blocked by the system as spam.

We lend out a proportion of money stored in Monzo current accounts (up to 25% of total deposits) in the form of unsecured personal overdrafts and loans.

Money stored in interest-earning Savings Pots is held in an account at another bank, depending on which Savings Pot you opened.

We use some money as collateral for payment schemes. The rest sits in cash and balances at central banks.

5

4m?? That’s amazing!

6

Yeah, personally I want to know if I keep up with the suggested budget. I don’t mind if Monzo benefit from it as well.
Today I keep track by manual calculation.
I thought about it for long time, maybe I just need to code it myself :slight_smile:

7

I’m sorry if you didn’t understand what I mean, maybe I should have used a better example to communicate it better.
No reason to escalate it :slight_smile:

8

No worries I understood what you meant. What I meant is that the forum software normally picks up and autoflags when a new customer joins and posts remote content like your Amazon link, and the content reads a bit like a sales pitch to flog a book. I’m aware it’s not your book and no referral on it too.

My response was what monzo is currently doing with the money held if you wanted to know.

If you check the main monzo.com website it says how many customers too so 4,068,757 as of now.

In a perfect world people would save 20% but that’s never going to be realistic for the majority.

Also if you start with £29,400 that’s £23,500 after tax and NI as £16,900 of it would be taxable.

So it’s more like £4700 if you take 20% of it.

I would say the average salary of the monzo customer is probably closer to £20k rather than £30k based on demographics.

So £1200-3600 savings per year is more realistic than £6000.

Basically £100-300 per month is :+1:

If you can save £500 per month then do it, but it’s not realistic for most.

I think a lot of people are happy if they have £50.

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