Confusion setting up Goals - Bad math?
Hi there, I'm trying out Simplifi coming from YNAB. I have a number of savings goals (sinking funds) already in YNAB that I fund monthly, so I figured this would be an easy conversion to recreate them in Simplifi… but the math isn't adding up. I'll take an easy example. Say I would like to have $1200 ready for a vacation in July 2024. Because it's January, I already have saved $600 ($100 per month starting last August).
So when I try to recreate this in Simplifi as a savings goal, you would think if I put in the $1200 goal amount with $600 already saved and a date of July 2024, it would tell me I'm on track and calculate an even $100/month, right? Nope, it says I need $85.72 per month.
How is Simplifi getting these calculations? Now think about a goal that doesn't have easy math, it really screws those up!
Comments
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@Dave5150 Q-Simplifi does not assume you've made a January payment in your "Saved So Far" field, so it's counting that you'll make 7 payments instead of 6 (Jan, Feb, Mar, Apr, May, June, Jul).
I believe that if you create the SG as having saved $500, then add a $100 contribution for January, it will come out right
It's also worth remembering that if you need that $1200 at the first of July, it won't be there. Simplifi counts July as a contribution month, so if you need it at the beginning of the month, it's best to set the target date to June 30 (unless, of course, you can count on making the July contribution on the first of the month).
Anthony Bopp
Simplifi User Since July 2022Money talks. But all my paycheck ever says is goodbye3 -
Ahh ok, thank you! That's just the detail I needed to keep from pulling my hair out!
Side question on this. What's the best way to deal with repeating annual goals (like Christmas presents)? Should I just change the goal date from Dec 2024 to Dec 2025 once I get to that month? Or should I create a whole new "Christmas 2025" goal and plan on deleting the old goal?
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The other thing to remember, if no one mentioned, is that Quicken Simplifi counts the "goal month" as in you'll reach your goal if you make a contribution that month — it's not you'll have that money when the month gets there.
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Rob Wilkens0 -
Thank you all for the advice here. My brain can wrap around this much easier!
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One question about the auto contribute setting. I was assuming that it would do that on the 1st of each month. As in, if I have a goal due in July, once July 1st rolls around, it would be fully filled on that day. Is this not correct?
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it doesn't really auto contribute. That is, it won't automatically transfer money from one account to a savings goal. It will reflect your intention to make that contribution in the spending plan.
As for repeating annual goals, you will have to recreate them each year.
There are a lot of requests in the forums to make savings goals less fiddly, more automated, and more intuitive.
Anthony Bopp
Simplifi User Since July 2022Money talks. But all my paycheck ever says is goodbye1 -
Ahh ok, that’s a shame. I can understand why someone may not want available money automatically allocated each month (just in case there’s a month they don’t want that etc), but for me it would definitely be a great option.
Just so I understand the “reflect the intention” part, if I set a goal and say I intend to contribute $100/mo, on the first of each month it shows for example $1000 available to spend after bills, goals, etc. Since that’s reflecting my intention to fund $100, once I do it, it still should show $1000 available right?
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No, in that case your spending plan would show $900 available for the month. The Spending Plan assumes you are going to allocate money toward the things you have defined, be they bills, subscriptions, or savings goals.
EDIT: wait, I misread your question. Yes, in the case you describe, it will show $1000 available.
Anthony Bopp
Simplifi User Since July 2022Money talks. But all my paycheck ever says is goodbye1 -
Now I’m really confused. If it doesn’t account for the planned contribution to a goal each month, what does this actually do?
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Ohhhh I think I see actually. It would have already brought the spending plan to $900 since I have $1000 but planned to fund $100?
I’m sorry I’m so dense on this lol0 -
No you're not dense, I am. I edited my response.
Anthony Bopp
Simplifi User Since July 2022Money talks. But all my paycheck ever says is goodbye0 -
Ok good thanks! I’ve been on YNAB for so long I’m used to knowing where every last penny is. Simplifi is an adjustment, and I like it so far, but I definitely need to know for sure what it’s doing under the hood to feel comfortable.
Thanks again for your insight here AJ, you’ve been super helpful!0
