Goals and cash flow

TommyMac

I recently watched the Goals video, very nice, thank you.  I set up a simple goal to see how it works, and I have a question. I see that under my checking account it has my balance, my amount set aside for goals, and my available balance post goals.  Is the amount set aside for goals reflected in the cash flow graph? i.e. If my balance is $1000 to make the math easy, and I have $200 set aside, my available balance is $800. 

Is the "today balance" on the Projected Cash Flow chart $800 and going forward offset by scheduled transactions to reflect what I actually have to spend less money set aside for goals? or is the cash flow graph my actual cash on hand less my scheduled spending and the goals savings not reflected in the chart?

Thanks!

DannyB

Since the funds designated for a saving goal isn’t actually spent and making a contribution is completely up to you, it won’t impact the predicted cash flow.  The cash flow graph only takes into account whatever is set up as a recurring expense under bills and subscriptions.  As for a saving goal no money actually leaves your accounts and so remains part of your available funds.  

The way I get Simplifi to take into account money I contribute to savings goals in the cash flow chart is through recurring transfers from checking to savings.  Since these are recurring and actually take place in the real world, Simplifi can track them on the future cash flow chart.  

You will have to rely on your account balance in the accounts tab to tell you what you have available to spend minus money you have designated for your savings goals.

Coach Natalie

@TommyMac, you may also consider adding your vote and feedback to an existing Idea post requesting the ability to include Savings Goals contributions in the Projected Cash Flow.

https://community.simplifimoney.com/discussion/1380/savings-goal-contributions-should-reflect-on-projected-cash-flow-graph#latest

-Coach Natalie

Flopbot

@TommyMac, great question!

@DannyB, great reply as usual!

Since I too am trying to learn Savings Goals, I just want to make sure that I understand Tommy's question.  Tommy are you asking that if you had these amounts...



Does the projected Cash Flow graph show $1,000 or $800?



If that was your question, then based on the screenshot above, it shows $1,000.  So, no, the Projected Cash Flow chart does not take into account any money that is currently being "held" in Savings Goals.  I can see how that would be a problem if you weren't being careful!

So far, with what I know about Savings Goals, I have a few "unwritten rules" that I follow.

1. Only use Savings Goals for Savings Accounts...not Checking Accounts.
2. Deposits/Withdrawals from any one (1) Savings Goal should only come from one (1) real world Savings Account.  Stated another way, don't mix money from separate real word Savings Accounts into one Savings Goal.  To help me keep track of this, I add the last four digits of the account # to the name of my Savings Goals (ex. "~ Zoo Membership *SG* 4293").
3. If you have a Savings Account with Savings Goals attached to it, NEVER, EVER, EVER, EVER schedule a real-word transfer out of that account for more than the "Available Amount" (ex. $800 in the top screenshot).  If you do, you are essentially stealing from a variety of unspecified Savings Goals and it breaks Simplifi and makes the Savings Goal feature stop working properly in the Spending Plan.

While these aren't official Simplifi dictates or anything, they certainly have reduced my frustration.  Honestly though, I'm still working on #3.

Good luck learning Simplifi.

TommyMac

@Flopbot, @DannyB Thanks Chris and Danny, I see what you're doing and it makes sense.  I suppose that's why I've never used the goals in Quicken either (Quicken user since the DOS days. lol). It's a great idea and tool if you know what's happening. Quicken does give you the ability to toggle the register to reflect the amount set aside for goals however by showing them as register transactions, it just messes up balancing as they are never actually cleared.   I guess for me it's feels pointless to have a goals tool to set aside funds, but really no way to insure those funds are actually there when you need them other than workarounds. I may be missing something still.  For now I'll continue to use Qapital (Qapital - Discover true money happiness), where I transfer 15% of my check there every week and spread it across a series of goals.  @Coach Natalie, I will add my vote to the link you sent, thank you. 

DannyB

@Flopbot

Great set of Saving Goals "unwritten rules" (that, btw, are now written  !

And of course, what are rules without exceptions!

Rule # 1 Exception:  I have started designating contributions to my "Birthdays & Christmas Gifts" contributions in one of our checking accounts since that is where that SG money gets spent from and since it is spent "randomly" through the year. There are only 3 months in the year we don't have at least 1 birthday and we do Christmas shopping through the year when we come across something.  It is easier to withdraw to spend on goal if I simply leave this money in a checking account rather than have to make multiple transfers in and out of a savings account.

Rule #2 NOT an exception, rather a caution or Be Aware:  Be aware to double check that you are making a contribution from the INTENDED account.  When you go to make a contribution to a savings goal keep in mind that you HAVE to designate which account you are contributing from.  I have too quickly clicked through the contribution screen without double checking the account I want to use thus funding savings goals from the wrong account and have ended up with "mix[ed] money from separate real word Savings [and checking] Accounts into one Savings Goal."  Correcting this can be a bit of a hassle so BE AWARE.  I will be adapting Chris' method of connecting the last four digits of the account holding a savings goal funds, this is a GREAT idea.

Rule #3 NO EXCEPTIONS

TommyMac

@DannyB Agree with your “rules”, I also have the same birthday issue. My nieces and nephews are grown now but there was a time when my son, daughter, niece, nephew, anniversary and a close friends child’s birthday all landed during the same two week period, which was literally two weeks after school started (think back to school supplies and clothes), and homecoming for two of my daughters (dresses, etc). Good forbid I didn’t budget and track like a Hawk for those two weeks. Lol

[corrected user tag]

DannyB

@TommyMac

Indeed!. I transfer a set amount of our income into our savings accounts and use Simplifi's Saving Goals feature to do what it sounds like you are doing with your Qapital account.

Having a Goals tool to keep track of the money one is saving for specific reasons is very helpful.  BUT, if you don't actually save the money in the real world, well hey.  There is an ongoing conversation in the community about having the ability to roll over money form month to month that has the same flavor as discussing the saving goals tool.  The tool is great, but in the end I have to actually manage how I earn, save and spend my financial resources.  A tool simply assists in this process but it can't replace my personal choices.

I'm glad you have a tool that is a good fit for you.