Savings Goals

Feb
15th
2008

Filed Under Saving
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quicken_logo.jpgQuicken has a neat feature that helps (me) out with saving for bills that come due periodically or when I want to save for something specific (like a new camera lens). A ‘Savings Goal’ is a virtual account (internal to your Quicken program) that visualizes how much you’ve saved towards a specific item. Your cash is actually kept in any real account you’d like…the virtual Savings Goal account is simply linked to your checking, savings, etc account, and withdrawals/deposits are made to/from it like any other account.You can access the Savings Goal screen from the Planning menu in Quicken.

For example, I set up a Savings Goal for my yearly property taxes. I have a home equity loan (not a conventional mortgage), so I’m responsible for paying my property taxes each year instead of it being put into escrow by a mortgage company. To make sure I’m saving enough for it throughout the year, I make a monthly deposit to my ‘SG-Property Tax’ account. Then, when my taxes come due, I “withdraw” the money from my ‘SG-Property Tax’ account, write a check, and I’m done. I don’t have to worry about coming up a with a large amount of cash each year.

Quicken is even smart enough to tell you when you’re falling behind on your goals (if you like your computer yelling at you).

The only negative aspect of these virtual accounts is that you have to know which real account your money is in. When you reconcile the real account, the balance will be short by the amount you have in your Savings Goal account. While this doesn’t affect anything in the real world, it can be somewhat confusing and disconcerting when you look at your real account balance. I typically only use one real savings account to link to my Savings Goals, and I name the Savings Goal accounts so that they will be listed in the sidebar immediately after my real savings account. That makes it easier for me to see the whole picture.

Savings Goals are a neat, helpful tool if you have problems with money and “saving-self-control”. Set them up, automate the deposits, and you’ve got one less thing to worry about. They are also helpful for those big, fun purchases…it helps to know how far you have to go, and keeps your wallet in your pocket until you have the cash in-hand.

DK


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Feb
15th
2008

Filed Under Misc
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quicken_logo.jpgI’m a big fan of the Quicken financial management software made by Intuit. I’ve been using the software since 1993 to manage my personal finances, budgeting, track my investments, etc. I honestly can’t imagine anyone not using a similar software program to manage their money. After all, “you can’t manage what you don’t measure.”

Anyway, I consider myself a “power user” and am pretty familiar with most of the functions built into the software, so I thought I’d share some tips and tricks I’ve learned along the way….more posts to follow.

DK


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