I think you’ve just summarised very eloquently the issues I have with Monzo’s budgeting tools that I’ve been struggling to convey in a meaningful way for quite some time!
I’d be perfectly fine with an either/or scenario when it’s done right as you outline.
It’s precisely why the first feature I asked for since the introduction of virtual cards was the ability to link them to pots. As it meant I could then use them in that way for budgeting!
If Monzo can get the algorithms right, then segregated envelope budgeting would work a dream, and they’d go instantly from my least favourite account for envelope budgeting, to arguably the best, and they already have the tools and basics in place to double down on that and get it done.
With this approach, I hope they address the feed so that it’s not full of pot withdrawals followed by the transaction. That ties into my 10th wish though.
There are pros and cons to both methods though, and I think with this one, the main con is that you’re going to get unexpected transactions decline because they can’t pull from segregated money in a pinch, which isn’t an issue with the summary approach.
Personally, I’d like to see them nail both approaches and implement them both as part of a coherent package that compliment and work well together, so you can mix and match for different needs.
My big gripe that I think needs addressing either way is that Monzo’s tools are currently blind to future payments if they’re beyond the scope of your current budget period. I think it’s absolutely crucial that whatever approach they take, you can always clearly see when the next subscription and amount is due, and tailor the algorithms accordingly so that they effect what you have that’s safe to spend, rather just resetting at payday. Bill Pots currently do a slightly better job than summary at this.
I really want to see a connected card ideally a virtual one that I can just use from a pot to pay for groceries (or whatever other uses you want) via Google Pay etc. Or physical card if there’s an actual reason it can’t be virtual.
I want more granular control over my card freeze options, such as Starling. Whenever I freeze my Monzo card, I then have to set it up as the primary in Google Pay, whereas Starling I don’t have to
I completely agree with this - “Jack of all trades, master of none” comes to mind.
The one flaw I find with Monzo’s combined approach - is that there’s no mechanism in any of the tools, to allow you properly plan your long term financial needs appropriately. Maybe in certain limited areas, yes it works, but not for everything. And for a bank that wants you to go #FullMonzo, that’s not ideal.
There’s two big reason why I think that’s a problem too: 1) Monzo are trying to maintain that they are “more than a spending card” - but their budgeting doesn’t really support anything but short term spending (or, rather, doesn’t really treat “savings” as part of a budget). And 2) I suspect that Monzo’s average consumer generally skews to younger users - at least vs other banks.
What I personally think can happen, is that users will begin to “age out” of the feature set that Monzo has, as Monzo’s features aren’t growing to match the financial maturity it’s users develop over time.
That bit aside, that’s why I’d really love for properly integrating an envelope mechanism, and nested categories, and more comprehensive ways to think about Goals, budgeting with actual income not potentially arbitrary numbers, and being able to adjust the budget on the fly.
In short; The budgeting tools are in Silos - and silos are for milk, not budgets.
(edit: why use few word when many word do?)
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Anarchist
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I’d love to be able to select a pot as a “payment source” for external transfers.
Painful at the minute to have to withdraw from a pot and then do a payment, if this could be done in one swoop automatically it would be a massive step up in ui happiness for me