Link transactions to savings goal?

Steve86
Steve86 Member ✭✭
edited April 8 in Savings Goals
I am starting to look at the  “savings goals” feature. I want to set some more money aside to pay off some loans while I am actively making payments on.

Example: I created a few saving goals:
1. Pay off student loan early
2. Pay off car early
3. Pay off home renovations early

I created the saving goal with the outstanding amount as the final amount. Now, while I set money aside each month for the pay-off I am going to continually be making monthly payments against each loan. 

Is there a way I can link existing monthly payments to these savings goals or what is the best way to accomplish this? I want to make sure I using this feature as intended, while meeting the goal in the most efficient way possible since while I am saving money each month, while I am also making payments against the loan.

I am fully aware that the principle amount will be slightly less than the financed amount due to interest.
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Best Answer

  • Coach Natalie
    Coach Natalie Administrator, Moderator admin
    Answer ✓
    Hello @Steve86,

    Thanks for posting your inquiry to the Community!

    Hopefully some other Users come along with great advice on how they've handled this type of scenario in Simplifi, however, linking the actual transaction to the Savings Goal is not currently available in Simplifi. We do have an existing Idea post requesting this ability though, so I would definitely suggest adding your vote and feedback. 

    https://community.simplifimoney.com/discussion/1357/link-from-transaction-to-take-from-savings-goal#latest

    With that being said, I'd say that your best bet currently is to withdraw from the Goal using the option to "spend" from it, as this will still keep your Goal contributions in line with how much you've set aside, while also allowing you to see what portion of that saved money has actually been spent towards the pay off of your loan. More details on using this option can be found here

    I hope this helps, but please be sure to let us know if you have any additional questions! :smile:

    -Coach Natalie

Answers

  • Steve86
    Steve86 Member ✭✭
    Thank you! I’ll check the feature request. 

    I do hate to compare products but Mint has a feature we’re i can tie saving goals to loans. I understand that loans are not really in Simplifi but this would be a very good feature. 
  • DannyB
    DannyB Superuser ✭✭✭✭
    I beleive I have a pretty good handle on setting up a savings goal and how to add and remove money to/from a goal.  What Steve is asking is similar to my question so I'm going to post here for now.  If no response here and I don't find an answer in another post I'll create a new post with my question.

    So, my question is this.  I have a savings goal for "surprise" expenses that I know will come up but don't know what they will be until they happen and so I don't include these expenses in my Spending Plan.  My current example:  A piece of pool equipment went on the fritz a couple of days ago.  I'm not in a panic since I have money in my savings goal for just such a "surprise."  I've ordered the replacement and will remove the money from the savings goal to cover the cost.  However, how do I categorize this expense without blowing my budget for the month and thus messing up my x number of months not overspending my budget badge. :smile:

    I can think of two options but not sure what's best of if there is another solution.  I want to figure out the best way to handle these "surprise" expenses.

    Option 1: Is this an instance where I would go into the transaction detail and click to Ignore from Spending Plan?  And if so, how would I categorize it if not where I typically would in "Housing: Maintenance and Repairs".  I don't what to ignore from Reports since for my tax situation, this expense is tax related and I want it to show up in my year end report.

    Option 2: Since this is a housing expense that would fit in my Housing: Maintenance and Repairs category, I could go into my planned spending and increase the amount I plan to spend by the amount I am taking out of my "Surprises" savings goal and then categorize it as Housing: Maintenance and Repairs.  There is already some padding in this category over what I typically send monthly, but this expense is greater than that padding.

    Any thoughts or how to's will be helpful.  Thanks.
    Danny 
    Simplifi user since 01/22
     Budget: a mathematical confirmation of your suspicions.” ~A.A. Latimer
  • Coach Natalie
    Coach Natalie Administrator, Moderator admin
    edited March 9
    Hello @DannyB,

    That's a great question!

    To clarify, do you have your Savings Goals contributions deducted from your Spending Plan each month? If so, since the money that you're spending from the Goal has already been accounted for in the Spending Plan, I would suggest ignoring the transaction(s) that take place from the Spending Plan so that they're not being counted against you a second time. After all, you saved that money up for a reason! :wink:

    Also, when ignoring the transaction(s) from the Spending Plan, you can still categorize them accordingly and elect to have them included in Reports so that you're still able to see where the money went, but not have it counted against your budget.

    However, if you don't/didn't have your Savings Goals contributions included in your Spending Plan, then you may consider now including the transaction(s) in the Spending Plan instead. As long as the expenses are covered in the Spending Plan at some point, either by way of Goal contributions, or by including the transactions when you spend from a Goal, you should be good to go.

    I hope this helps, but please let us know if you have any further questions! :smile:

    -Coach Natalie
  • DannyB
    DannyB Superuser ✭✭✭✭
    Hi @Coach Natalie.

    I'm one of those people who learns visually and/or needs a step by step walk through.

    When I first set up my spending plan I included my irregular expenses as a fraction of the total bill when it would come due.  But since I didn't pay these expenses monthly and didn't see a way to roll over these monthly fractional amounts I deleted them and set up savings goals for each irregular expense and added a recurring bill in the month a particular expense is due.

    Since I know the total I need to save each month to meet these expenses, I make transfers from our checking accounts to our savings accounts a couple of times each month equaling that amount.  When these transfers are recorded and the money shows up in my savings accounts in Simplifi I divvy it up among my savings goals keeping our savings registers in Simplifi at zero.

    So, to answer your question about Savings Goals contributions being deducted from my Spending Plan each month, I'm not sure.  How would one go about setting this up?  Perhaps you can point me to a tutorial that would walk me through the process.
    Danny 
    Simplifi user since 01/22
     Budget: a mathematical confirmation of your suspicions.” ~A.A. Latimer
  • Coach Natalie
    Coach Natalie Administrator, Moderator admin
    edited March 10
    Absolutely @DannyB!

    The easiest way to determine if your Savings Goals contributions are being deducted from your Spending Plan is to navigate to the Bills & Income section of the Spending Plan and expand the Savings Goals portion. Any Savings Goals that are grayed out are not being included, whereas the non-grayed out ones are.


    To have your Savings Goals contributions deducted from your Spending Plan, you can either elect to do so when originally creating the Goal, or you can also edit an existing Goal to make this change:



    Our Support Article here also has more details on using Savings Goals in Simplifi. Let us know if you have any questions! 

    -Coach Natalie
  • DannyB
    DannyB Superuser ✭✭✭✭
    Well, duh!  OK, thanks @Coach Natalie :smiley:

    Now I remember seeing that option when I was setting up my savings goals but set them all as "No, ignore it".

    I'll play around with this option to see how it impacts or changes my spending plan.
    Danny 
    Simplifi user since 01/22
     Budget: a mathematical confirmation of your suspicions.” ~A.A. Latimer
This discussion has been closed.