Another "Just-for-fun" post: Budgeting, Bank Balances & Simplifi

DannyB

This is another "if you have time and want to check it out" posts.

Over the years I have used various tools to help organize, plan and manage my personal family finances. All of these tools were either primarily focused on budgeting or had substantial budgeting features along side other accounting features. But one thing I never expected from any of these tools was that they would accurately report my actual bank balances over the course of time.

This is a source thing. Simplifi, or any other fin app, is at best a SECONDARY source and as such cannot be depended on for what only a PRIMARY source can provide. Secondary sources can be and often are useful, but one must always keep in mind the secondary nature of secondary sources.

If I want the most accurate, up-to-the-minute, information on my bank balances, I have to go to the bank itself even if I have a high confidence in the numbers being reported by a secondary source.

This doesn't mean a secondary source like Simplifi can't be dependable, it just means that a secondary source can only be dependable to a certain level taking into account all the variables involved.

Here is my attitude/relationship towards a tool like Simplifi:

Since my Spending Plan amounts are based on my actual expected income and expenses in a given month (including contributions to savings for non monthly recurring expenses and other long term goals) I have high confidence that I will not overdraw my cash account(s) in a given month. Another helpful tool beyond the Spending Plan included in Simplifi are Watchlists. Having watchlists set up along with notifications, helps me pay attention to what is actually happening through the month(s) further enhancing my level of confidence that I won't overdraw my bank accounts.

Still, Simplifi is simply a tool to help me put on paper, digital though it may be, how I intend to manage my financial resources in the current month… and that is it. Simplifi cannot, in the end, help me actually manage my spending. It can only be a planning tool - it cannot actually execute or manage my plan. Only I can do that. Simplifi can help me keep track of multiple accounts and vendors in one place, but it cannot be depended on to be 100% accurate. Only I can check and maintain the accuracy of my original sources.

Nevertheless, once again, if I have planned appropriately and I execute my plan well, I can have high confidence that I will not over draw my cash account(s).