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Last updated on December 2nd, 2022 at 04:23 pm
It took me a long time to learn how to use funds in the EveryDollar budgeting app, despite using it for a couple of years. I know I’m not the only one who struggles since how to use funds is part of the FAQs on the app.
Now that I know how funds work, it’s clear that they’re an organization tool for your savings account.
In this post, I’ll explain how to use funds in EveryDollar and how funds can organize your savings account.
How funds work in EveryDollar.
Say you want to create a fund for Christmas.
Add an item to your “Savings” group, then click on “Make This a Fund.”
Once it’s been made into a fund, you can enter the amount that’s already been allotted for Christmas. Add savings goals and goal dates to help you reach the desired fund amount on time.
If you plan on contributing to the fund this month, enter the amount under the “Planned” column.
Here’s where it gets tricky: once you enter an amount into the “Planned” column, you don’t need to do anything else. That amount will automatically be added to your fund. You’ll see the amount added when you click on the details of the fund.
If you don’t plan on contributing to a particular fund, zero out the “Planned” column.
When you spend from that fund, enter what you spent into the “Spent” column.
As soon as you’ve reached your goal amount and you’re able to spend your fund, delete it.
How to use funds in EveryDollar to organize your savings account.
Once I understood how funds work, I realized this was a great way to organize my savings account.
If you’re like us, you might have a savings account being used for multiple goals. For example, you could be saving for Christmas, a vacation, and a new couch all in the same savings account.
Using funds in EveryDollar can help you allocate the money in your savings account to the different goals.
For example, let’s say you have $2000 in a savings account. To keep your spouse and yourself on the same track, you split up the money into funds in EveryDollar so you know how much of that $2000 goes to Christmas, a vacation, and a new couch.
Here’s how to do that:
01. Create a new group.
02. Add an item for each goal you’re saving toward. (For our example, an item for “Christmas,” another for “Vacation,” and another for “Couch.”)
03. Make each of those items into a Fund and allocate part of the $2000 to each. (For example, $200 for Christmas, $1000 for Vacation, and $800 for Couch.)
EveryDollar uses funds as a visual way to keep track of your savings goals. It makes it easier to stay on track with what you’re saving for and keeps everyone on the same page, as Dave Ramsey talks about in his book The Total Money Makeover.
