Spending from savings goal multiple fixed times a year

myllanac
myllanac Member
edited September 30 in Savings Goals
I have three annual life insurance premiums paid at different times of the year. September is a three-paycheck month (and also when one bill is due), so I want to set up a savings goal with the amount I'll need for the other two payments.

Should these payments also be a Bill in the Spending Plan? And in the proper month I just click Withdraw from Goal for that month's premium amount (to offset the bill in the Spending Plan)?

Best Answer

  • DannyB
    DannyB Superuser ✭✭✭✭
    Answer ✓
    Hi @myllanac

    No, you don't need to include the actual payments as a bill in your spending plan.  In essence by including the contribution to the savings goal in your Spending Plan you are already paying this bill virtually so that when you actually pay the premium you have already accounted for it and can ignore the actual payment in your spending plan.

    I'm still figuring this all out also.  You might want to check out this discussion about the Spending Plan and add your thoughts about rollover abilities.


    Danny 
    Simplifi user since 01/22
     Budget: a mathematical confirmation of your suspicions.” ~A.A. Latimer

Answers

  • Coach Natalie
    Coach Natalie Administrator, Moderator admin
    Hello @myllanac,

    Thanks for posting your inquiry to the Community!

    To clarify, are you looking to break the yearly premiums down to a monthly amount in the Spending Plan by using a Savings Goal? If so, I'd suggest taking a look at our #TipTuesday on using Savings Goals to break down annual expenses to a monthly amount in the Spending Plan.

    https://community.simplifimoney.com/discussion/3446/tiptuesday-using-savings-goals-to-break-down-annual-bi-annual-expenses-in-the-spending-plan#latest

    Please let us know if you have any further questions!

    -Coach Natalie
  • myllanac
    myllanac Member
    @Coach Natalie No, not monthly. I want to set the one-time premiums (3 separate ones) aside once (in September), ready for when they need to be paid, since September is when I have a third biweekly paycheck for this kind of thing.

    @DannyB Thank you, I'll remove them from Bills if I already have the money "saved" in checking (where they'll be paid from). In the month when the bill is due in real life, is when I'd "release" the amount from the Savings Goal?
  • DannyB
    DannyB Superuser ✭✭✭✭
    That's right, you will do a "Withdraw to spend for goal" when the bill is paid and remember to mark the payment when is downloaded into Simplifi as "Ignore from spending plan."
    Danny 
    Simplifi user since 01/22
     Budget: a mathematical confirmation of your suspicions.” ~A.A. Latimer
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