New to Simplifi. Thoughts and Questions about Savings Goals
At our Credit Union, we have an extra 20 accounts that we use as "savings buckets", Christmas, Auto Maintenance, etc.
When we have an expense that correlates with one of those savings buckets, we simply transfer the same amount from our savings bucket account into checking and the charge is offset. For example, let's say I have 2,000 in my Auto Maintenance account and I have a 500 repair bill. We'll pay the bill with our credit card, transfer 500 from the Auto Maintenance account and pay 500 towards our credit card bill.
I'm wondering if I should stop using these 20 accounts as savings buckets and instead use Simplifi's Savings Goals feature.
Since I'm new, I'll off my fresh perspective regarding how I would want/expect this to work with Simplifi
Let's say I have $5000 in my savings account and $2000 is allocated to Auto Maintenance using a Savings Goal.
I pay my $500 repair bill with my credit card as normal.
My charge shows up in Simplifi from my credit card company and I mark the category as Auto Maintenance.
When it's time to pay my credit card bill, I transfer $500 from savings to checking and categorize the transfer as Auto Maintenance. Then I pay my credit card bill.
If I mark the charge, and the transfer as Auto Maintenance, my expectation is that Simplifi should see that those are linked, and automatically lower the amount of the money in my Auto Maintenance savings goal by $500. And the incoming charge from the credit card company shouldn't be counted against my monthly spending.
At the very least, I would expect Simplifi to see that the categories and the amounts are the same and ask me in the transaction if they are the same and track things the way I discussed above. If I have my Savings Goal named the same thing as one of my categories, my expectation is that they would be linked somehow.
Switching to opinion mode…
I think it's a bit strange that I could collect money from different accounts to count towards a savings goal. What percentage of users would actually do this? I would expect that most people who are saving for upcoming expenses and want to use multiple buckets, wouldn't split money towards a savings goal from multiple accounts. That seems… complicated. I would expect that most users would simply designate an account where they save everything and split the money in that account into savings buckets. But I suppose that for large expenses, such as down payments and such, that would make sense. But then you could simply have Savings Goal 1 as "Down Payment (a)" and Savings Goal 2 as "Down Payment (b)" or something like that, one for each savings account.
From what I've read, the workflow for Savings Goals is a bit challenging for end users. I'd probably suggest asking users in a questionnaire how they would want Savings Goals to function and then code towards that workflow.
Based on what I'm seeing so far, since Simplifi is so good at matching transfer transactions, it's probably better for me to use my multiple Credit Union accounts as savings buckets rather than using Savings Goals, and simply marking an incoming bill from my credit card as not counted against my spending plan.