How to assign categories?

Hi, New to Monzo (but long term user of accounts packages, YNAB for the past several years).

I’m trying to work out how budget categories get assigned to transactions? The only proper transaction I have on my account at the moment is a payment to Spotify which, to my mind, is a “Bill” and should therefore be attributed to the Bills category. However… I’ve cannot work out how to do it?

Grateful for any advice.

Click on the payment on the feed. Click the coloured button and assign it to the correct category.

Is this what you mean?

Ah, just spotted it has been categorised as “Entertainment”, for which I have no budget set. In the absence of being able to change the category (work out how to change the category…), I decided to go with the flow and set my Entertainment budget to £15 (the value of the Spotify bill is £14.99). I assumed my budget would instantly show at 0.01p, reflecting the in-budget-period of £14.99 spend but, erm, it didn’t…

Now I have two questions… How to change / set a category? How do budget categories work? Actually, also a third… What’s the role of the “Excluding your committed spending, what’s the most you want to spend” budget value for?

(Thanks, Codf - just seen your answer to my initial question).

So for something like Spotify this would be a commited spend (i.e. it comes out every month). If you click on the feed item for this payment you can tick the repeating payment toggle and this will move it into the commited portion.

I budget using the Monzo app by ignoring commited spend, so:

the budgets I set + commited spends = total budget

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Ah, OK. I think I get it. Budgets are for disposable income. Different to YNAB but I’m going with the flow for the moment. Thank you - appreciate your time to explain.

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Ah, OK. I think I get it. Budgets are for disposable income. Different to YNAB but I’m going with the flow for the moment. Thank you - appreciate your time to explain.

Correct - I also found this hard to get my head around initially, as I’d always included committed spends as part of my budget (Still not sure why you can’t on Monzo TBH).

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Hello @themissingelf,

Having come from YNAB myself I ran into this very problem, I have a thread here Using Monzo for budgeting which you could take a look at to see how I am tackling this.

Transpired that for my YNAB works in conjunction with Monzo at the moment at least for me it doesn’t replace it.

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