A Basic Question About Basic Simplification
I don't know if I'm just speaking for myself, but when I think about what I most need a financial management app for, I'm thinking “Can I afford this?”
That is, if I use my current expenditures to look into the future, will my balance be over or under zero if I add a subscription to Paramount+, or HBOMax, or The Washington Post?
The Cash Flow report doesn't include planned spending or savings goals, so it's not helpful in answering the question of what I can afford over the long term.
The Spending Plan offers no way to plan for “unplanned spending” (which it seems could attempt to do by averaging the monthly total for unplanned spending over the last 6-12 months, which would be at least as accurate as the Planned Spending). Plus, the Spending Plan only tells you what you have left over at the end of a calendar month, which is far different than what you might have left over at the end of 5 weeks. So the Spending Plan doesn't really tell me what I can afford over the foreseeable future either.
Am I overcomplicating this subject, or has anyone figured out how to answer these basic questions with Simplifi?
Don't get me wrong. I love the software. But there does appear to be some gaping holes. I'm hoping those holes are in my brain and that others' input can help me rectify..
Anthony Bopp
Simplifi User Since July 2022Money talks. But all my paycheck ever says is goodbye
Best Answers
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@ajbopp In terms of the -current- month, it tracks actual unplanned spending so you know how much is left (at the bottom) for any other unplanned spending. Also, for future months (as you move forward), you can estimate unplanned spending based on previous months' spending to get an idea if your spending plan works for those months.
I am not @Coach Natalie but I like how the spending plan works, and thought I would attempt to give input.
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Rob Wilkens0 -
Hello @ajbopp,
I'm not finding any existing Idea posts requesting an “unplanned” section of the Spending Plan. For the current month, any unplanned spending is covered in Other Spending. For future months, you can use Projected Other Spending to budget for that future month based on past spending.
Perhaps you can create an Idea post requesting something similar to Projected Other Spending, but for the current month. 🙂
-Coach Natalie
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Thanks! For some reason I had never noticed the “Projected Other Spending” function before. It does exactly what I want!
Anthony Bopp
Simplifi User Since July 2022Money talks. But all my paycheck ever says is goodbye1
Answers
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In theory, I agree with you. In practice, "planned spending" in the spending plan doesn't have a date the planned spending is ‘on’, so that complicates the matter as per ‘when in the month to deduct those expenses.' If you know the date, having something like a future dated transaction if not some kind of recurring transaction for the amount would make the existing system work for you.
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Rob Wilkens0 -
My Planned Spending items are things like “snow removal," which varies depending on when and how much it snows and how often I need to have the Boy Scout come over. You're right there isn't a date that I can attach this to, and it may not even be an accurate amount. But estimating that by the end of the month I will have spent my “planned spending” would help me enormously in terms of getting an idea of “can I afford this"
Anthony Bopp
Simplifi User Since July 2022Money talks. But all my paycheck ever says is goodbye0 -
Thought of another issue, planned spending also is not linked to a particular account. But otherwise, the ‘end of month’ idea makes sense, and deducting amount already spent from planned amount that month might make sense…
Sadly, I have no say in this, but i like the idea.
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Rob Wilkens1 -
Hello @ajbopp,
Thanks for sharing your feedback with the Community!
What about having something like a “what if” tool and the ability to see Spending Plan trends? We also have an existing request for a Spending Plan Report.
It seems that both of these requests may be along the lines of what you're looking for. If so, please be sure to add your vote and feedback!
-Coach Natalie
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Hi @ajbopp I agree with your assessment of the way Simplifi projects cash flow. Until there is a way to include planned spending categories into how cash flow is calculated and projected into the future.
Spending Plans now go out 12 months so hopefully the response to the first link @Coach Natalie will follow, "We are currently working on adding a 12-month view to the Spending Plan, with the ability to forecast, see trends, and access a "what if" tool.". Would these tools give you what you are looking for?
“…has anyone figured out how to answer these basic questions with Simplifi?” I haven't tried to answer these questions using Simplifi, but I can see where the ability to do so would be valuable. Of course, my wife and I are at a pretty stable place. What I mean by that is that our annual and month to month spending hasn't changed in any significant way for the past 10 years (taking into account inflation whether at a low rate or this past years higher rate (We bought our first house when mortgage rates were double digit and the cost of gasoline went up by 100 - 200% literally overnight, so this past year was rough but we've been through worse)). Anyway, I have a static spreadsheet set up with our annual anticipated income and current expenses annualized. I use this spreadsheet to understand what we have, what we spend and what we have left. I use Simplifi to track my transactions, monitor our actual spending and implement the spreadsheet budget.
Danny
Simplifi user since 01/22
”Budget: a mathematical confirmation of your suspicions.” ~A.A. Latimer1 -
I don't think either of these suggestions address the core issue. A Spending Plan Report will only work well if the Spending Plan data already makes sense. There are key data points missing from the SP that would make a report based on the SP more misleading than ever, as it would give you projections that would always be less than reality.
Anthony Bopp
Simplifi User Since July 2022Money talks. But all my paycheck ever says is goodbye0 -
Hello @ajbopp,
Would you mind clarifying what specific data points are missing from the Spending Plan that would make a Spending Plan Report unusable so I can see if I can find an Idea post for you? We also have a request for the ability to enter the Spending Plan into a 12-month table that our Product Team is working on. This ability may allow for better planning and budgeting in general.
It looks like you've already seen the requests for the ability to include Planned Spending items and Savings Goals contributions in the Projected Cash Flow, however, I will share them here for other users who may be reading this. 🙂
You are also welcome to create an Idea post if you have an idea for how Simplifi can enhance its Spending Plan to help achieve what you're looking for. If you'd like to browse existing Spending Plan requests, you can find all of our Idea posts here.
-Coach Natalie
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“Would you mind clarifying what specific data points are missing from the Spending Plan that would make a Spending Plan Report unusable so I can see if I can find an Idea post for you?"
In my personal case, I can pretty much guarantee that I will never have a month go by with $0 in unplanned spending. So a report that makes no allowance for it is always going to be unrealistically optimistic.
Now that I think about it, I could try to manually determine monthly average for unplanned spending, then create a “Planned Spending” item for “Unplanned Spending,” if that makes sense. I would need to figure out how to adjust that spending item so that my unplanned expenditures are not double counted. It would be time consuming and inelegant, but doable I think.
Anthony Bopp
Simplifi User Since July 2022Money talks. But all my paycheck ever says is goodbye0 -
I'm trying to picture what you are getting at in this dicussion. Here is what I think I'm hearing you say you are looking for:
- A way to find out if you have enough money available to add new expensese to your existing budget ("…will my balance be over or under zero if I add a subscription to Paramount+…").
- A more accurate cash flow forcast that takes into account all Spending Plan spending and not just recurreing expenses in the bills & subscriptions.
- A way to estimate your “unplanned” spending so you can better plan for “unplanned” spending.
- Something about the difference between what is left at the end of a calendar month as compared to what is left at the end of 5 weeks.
- You wonder if your are overcomplicating things.
And here are some of my thoughts and ideas about what I think you're asking:
- As far as being able to see if I can add that Paramount+ subscription to my spending plan using Simplifi, I can go to Reports>Net Income and set a date Range, say the past 12 months then click on Filters > Accounts and select all accounts used to capture income and expenses in my Spending Plan. For me those are 2 checking accounts and 4 credit card accounts. Then click apply and you w and see your income and spending with a dotted line showing you net income for the date range selected. If that dotted line remains above $0 for most if not all of the months selected, I woule feel comfortable adding Paramount+. Another way to do this would be to keep track at my “Left at end of month” over a period of time (back to my spread sheet 😁) and if I consistantly have money left at the end of each month then, again, I am confident I can add that subscription going forward.
- I experimented with ways to bring my planned spending into the Cash flow forcast currently avialable in Simplifi, but it was pretty much a bust and not worth the effort. Here is a feature request to add Planned Spending to cash flow.
- To plan for unplanned spending perhaps create a “Miscelanious” or “Unplanned Spending” category in your Planned Spending and fund monthly with some of that “Available” money. Then when something shows up in Other Spending, categorize it “Miscelanious” or “Umplanned Spending." BUT, Simplifi is built for this - to show you what you have available each month AFTER all anticipated income, bills, subscriptions, savings contributions and planned spending are accounted for. You can look at "Available and determine if you have anything available for those unplanned expenditures.
- Any time period you choose for budgeting/planning purposes is basiclly abitrary. Using the calendar month is a natural and convenient way to structure income and spending since so much of our lives are shapped by the calendar. Right now Simplifi as no means to keep track of “Left at end of month” other then to tell you that you are either in the black or in the red. I track my “Left at end of month," once again with a spreadsheet.
- Perhaps… but then again… the above! 😲😏🤣
Danny
Simplifi user since 01/22
”Budget: a mathematical confirmation of your suspicions.” ~A.A. Latimer1 -
Thanks @DannyB ! I'm not sure I understand what I was trying to get at in this thread either at this poinnt 😁 But as near as I can tell the excellent answers by @RobWilk and @Coach Natalie lead my down the right path. I simply had not discovered the options available when you click Other Spending in a future month.
I think part of the confusion is that in my mind I associate Other Spending with Unplanned Spending, and I tend to use the terms interchangeably. That's probably confusing to anyone who doesn't live in my head (and woe unto you if you do!)
Anthony Bopp
Simplifi User Since July 2022Money talks. But all my paycheck ever says is goodbye3
