What I’ve wanted all my 30 years of personal banking is the ability to have separate bank accounts for every category in my budget, so that money becomes ring-fenced, leaving only discretionary spending in the main account (“General” in Monzo speak).
This way budgeting isn’t just numbers on a page but a robust set of categories built directly into your mode of spending and depositing, requiring the shifting of actual money between categories if adjustments need to be made.
With Monzo this is actually possible. I think it would be great if we could optionally ring-fence money as it’s deposited into our Monzo accounts, leaving us with three sets of balances:
- Overall money in our Monzo account
- Amount in each ring-fenced budget
- Discretionary spending (“General”)
And it would be this last one that would be main one that we see when we open the app and spend money.
When spending money the budgeting feature would work the same way as it does now, except it would take money out of the relevant budgets as appropriate. If there’s not enough in a budget it would either put the budget in arrears and let the user manually correct it at a time of their choosing, or automatically pull money from the General/main budget.