Splitting our money into different pots is a great way to save for different things. Let's have a look at 5 super Monzo savings pot ideas that you can put into play today.
Life is full of paying bills, putting money aside for payments and figuring out the best price for what we need to pay for. When we have our money in one pot, it's hard to see the wood for the trees. What is that pot of money actually being sav for? Where is that next insurance payment coming from? What money will you be using for the road tax for your vehicle? Wouldn't it be fantastic if you could split what is in your bank account into separate pots. So you can see it all easier? So you can see what is saved for those payments coming up and different arts of life? Well, there is a solution! The bank Monzo let you do just that, so you can get a clearer picture of what your finances look like and where you'll be using them.
Christmas
The first of our 5 super Monzo savings pot ideas is Christmas. Christmas is celebrated by a huge proportion of the population and we enjoy food, gifts and decorations. Making memories with our nearest and dearest is part of family life. The festivities do usually come with some costs to pay though. However, as we know when Christmas is coming every year, we can plan ahead for it. Crunching the numbers and know how much we have spent on average over the previous years will give you an indication of how much money you need for the Christmas season. Then you can save throughout the year, ahead of when you need the money in November and December. Save into your Christmas pot so you don't need to find hundreds of pounds out of the blue a couple of weeks before Christmas Day.
Car & Home Insurance
If you pay your car and home insurance premiums annually, you'll likely pay less than you would do if you pay 12 monthly payments. It can be much more affordable, with some annual payments working out as much as 2 months cheaper compared to choosing monthly payments. If you can save a twelfth of your annual payment every month, you'll have enough to pay it off in full next time it is due. An example of how our Monzo savings pot ideas can actually save you money! If you have more than one car or insurance policy, you might be able to save ever further by combining your insurance policies into one with one provider. It wont always work but with extra discounts and loyalty you might pay even less this way.
Subscriptions
Do you know how much you pay out every month for subscriptions? This could be TV streaming subscriptions or even the gym! Whilst you could save more money by cancelling the ones you don't need, the ones that you want to keep need paying for. This is why subscriptions is on our list of 5 super Monzo savings pot ideas. Set up a separate pot and ensure you fund it with the amount that you spend on subscriptions every month. Netflix might be £9.99 a month, your gym membership £35 a month, Spotify another £9.99. You can see how it adds up and turns into quite a chunk of money. As with insurance, you might pay less if you pay your subscription annually. In which case you should start saving monthly ahead of that next cheaper annual opportunity.
Road Tax & Vehicle Maintenance
A lot like Christmas, our road tax need paying every year for our vehicles. Our cars also need servicing, an MOT and maintaining every year. With that in mind, setting up a Monzo pot for road tax and vehicle maintenance is a great idea. No one usually has £500 spare to throw at a car repair if someone has broken. We can create a ball park figure of how much we need in this pot each year, by adding up how much our road tax, service and MOT usually costs. Then you need to have a contingency in place for unexpected repairs.
Remember, cars needs maintenance and you'll need new tyres every few years as standard. You don't want to be stuck without your car or find yourself having to turn to a credit card to get your vehicle back on the road. Stay ahead of yourself and start putting your money into a specific fund.
Healthcare Payments
We all want the best care for our families. That might be paying into a healthcare plan or having a policy which entitles us to treatment. This will, of course, need paying for. Using the fifth of our Monzo savings pot ideas will help you split off the money you need for healthcare, ensuring you have enough put aside for your payments. Healthcare comes in many different forms. From specific treatment for childhood illness, to seeing a physio once a week for backpain or recovery from injury. It even includes eye checks and dental appointments. Prescription prepayment certificates can save you money over the course of a year. However they will cost you over £100 in one go to pay out for. All of these things should be taken into account when you are setting up a pot to save into for your healthcare.
As you can see, these 5 Monzo savings pot ideas show you some examples of what you can set up separate pots for. There are other things you could name your pots too, including birthdays, childcare, meals out, clothing allowance and charitable donations. This can help you with our finances, providing a picture of your account which actually shows you how you're going to pay for things. No one wants to struggle and be met with bills that they cannot pay. Nor have to turn to expensive credit which will cost them a lot more in the long run. Getting a handle on your account is important. You will know what money is set aside for different parts of life is a huge step forward in being financially stable.
