‘I’m retraining for my dream job thanks to a smart money app’

It was during lockdown that Peter Alexander, 35, began to think about reorganising his finances. 

While he’d saved some cash in bank accounts, he wasn’t satisfied with the low rates of interest on offer. And despite being interested in investing, he hadn’t got around to starting.

That’s when he turned to a smart money app that makes money management easier than ever before.

Plum helps people save and invest using the power of automation – with more than 2.2 million users onboarded so far. 

It works by linking to your bank account and calculating how much you can afford to save before setting it aside at regular intervals. Plum then puts this money to work in a way of your choosing, from saving it into an Interest Pocket or Cash ISA to investing it in one of its many funds.

Tax treatment depends on your individual circumstances and may be subject to change in the future. If you choose to invest, keep in mind, the value of your investments can go down as well as up, and your capital is at risk.

Peter, from Nottingham, now has an impressive £15,000 saved with the app – with some of it funding the training he needs for his new career as a tree surgeon. 

‘The first lockdown five years ago gave me a new focus on organising my money,’ he says. ‘I was looking to put some savings away and that’s how I first became aware of Plum.  

‘I had some low-rate savings in bank accounts, but I don’t believe I had ever tried investing.’

Once you’ve set up Plum and enabled automatic deposits, its Splitter tool lets you select how you want to divide them up between your various savings and investment pots. 

The app also offers (depending on your subscription) a series of clever ‘auto saver’ rules that are designed to help you save more on a regular basis by targeting money that may otherwise be ‘left over’ at the end of the month.

Note that if you use automation, you will still need to review your funds periodically.

In Peter’s case, he splits his automatic deposits between a Plum Interest pocket and his pension, while the rest is divided evenly between his stock market investments. He also saves separately into a Cash ISA.

‘The algorithm seems to be effective at working out when you have more or less coming into your account, which is helpful given I’m self-employed,’ he says. 

‘Then when it comes to auto savers, I’ve enabled Round Ups, which rounds up my spending to the nearest pound and puts it straight into my savings. So far, I’ve saved £600 from that alone.’ 

Peter invests in several Plum funds including Global Tech, Balanced Bundle, Core UK All Share Fund, Core US S&P, Growth Stack, Balanced ESG, Core ESG and Growth Europe. He has also invested ‘a little bit’ into tech company Nvidia.

(The above is not a recommendation to buy or sell funds. You should not invest unless you understand your exposure to risk and are satisfied that investing is suitable for you.)

‘Plum makes it really easy to choose investments and monitor their performance,’ he says. 

‘I’m not massively savvy at investing but I’ve found it straightforward.’

When you are trying to boost your savings, setting clear targets can really help with motivation. 

Fortunately, with Plum, you can create different pockets for each savings goal – while taking advantage of its auto saver features to reach these faster.

But you are always in control, with the ability to withdraw your money or change how much you save – or how you divide your deposits – at any time. 

Peter was previously working as a teaching assistant and actor before switching careers to become a tree surgeon. He’s now putting some of his savings towards a chainsaw qualification.

‘Some of my money on Plum is going towards that,’ he says.

‘My friend is setting up his own business so I should have regular work with someone I get on with well.

‘It’s something that inspires me as I like being outside and it keeps me fit and active.

‘I’m also saving for a holiday to Thailand – but I’ve got other things to pay for first!’ 

Peter has become something of a disciple for Plum after it helped him get his own finances in order.

‘If I’m ever speaking to people about money, I’ll recommend the app to them and send a link,’ he says.

‘It’s saved me loads of money and seems to perform really well. I like the simplicity of the interface and the algorithms.

‘Plum has taken a lot of the stress away from managing my money.’ 

Download Plum NOW (it is available on both App Store and Google Play). 

Plum is the trading name of Plum Fintech Limited and Saveable Limited. Plum Fintech Limited is registered and regulated by the Financial Conduct Authority (FRN 836158). Saveable Limited is authorised and regulated by the FCA (FRN: 739214).