Avoid These Mistakes In Monarch Money! (And An Explanation On Transfers)
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- Опубліковано 18 чер 2024
- The most common mistakes and questions I get as a financial coach about Monarch Money.
00:00 Intro
00:30 Categories
01:20 Understanding Transfers
02:36 Categorizing Transfers
05:40 Transfers to Investment Accounts
06:26 Hiding Transactions
07:50 Reimbursements
08:51 Goals
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Super helpful, thank you!!!
Fantastic advice. Especially on keeping the "return" merchandise entries categorized as the original purchase. Thank you
Glad it was helpful!
Thank you again for your content! One question that came to mind: how do you handle dividends or interest on retirement accounts? Monarch likes to say they're income, but if you're not retired they might not be
I would mark those as transfers so they dont show up in budget or cash flow if you don't use those dividends/interest in your monthly budget. Retirement fundsl investment tramsactions usually dont matter when budgeting. You would only mark the withdrawals as income, not dividends.
However, for savings accounts interest (non-retirememt savings) I just mark as Interest income because that interest does build toward my short term goals like emergency funds or travel.
I like to categorize my post-tax investments in my budget as an expense, because it affects my net income cash flow. I understand that long-term it's a transfer - it's still my money, but how do I plan for it monthly if I'm not accounting for it in the budget? Thank you for your videos!
You would budget for it by using the Goals section. Create a Goal for savings and call it Post-tax investments and you'd budget a set dollar amount each month!
What is the best way to handle direct deposits to my savings account? I have my paycheck allocated to a portion going directly to my savings account and the remaining balance going to my checking account, both accounts linked to Monarch. I have my savings account at a different bank because my bank doesn't offer high yield savings. Monarch automatically categorizes the savings deposits as income, but I was changing that to transfer. Then I made a goal for an emergency fund and budgeted those savings deposits toward the goal, which I think is the right way to handle it, but I am not sure. I have seen that some people are hiding the savings account from their budget and cash flow, but I don't think I want to do that. I know I don't want to change my paycheck allocation, just not sure how to handle these deposits to my savings account. Thanks!
Hey there! Any deposits from an external source (aka direct deposit from employer) should be categorized as income, regardless of what account it is deposited. Transfers are only for money moving between accounts (e.g. moving your paycheck from your checking to savings after it settles in your account)
Thanks for this Taylor! I am new to Monarch and have been wondering how to denote savings/investments. I currently have a line item/category for investing and various savings goals. This makes my savings rate zero. But I do this because with the approach outlined in the video, it will lump savings and investing into my savings rate. I would rather know I put, say, 15% of income toward non-retirement investments and 10% to savings goals.
With your approach, is there a way to have better insight into my savings split? I would like to do you method so my cash flow statement doesn't show a 0% savings rate but also don't want my savings to include my non-retirement investing. Any advice?
There isn't really a way to separate the two. The savings rate is only calculated by how much money you didn't spend that month divided by income received that month.
Thank you for the content. One question is there a way to track your medical debt in Monarch? We are paying monthly bills to the hospital, I would like to monitor them via Monarch. Is there a way to add them manually?
You can have a manually entered loan/debt for your medical bills, you would just need to manually enter in the receiving payments under that manual account in Monarch when you make them so that you can track the balance and progress
Hello! I recently closed a bank account that is not linked to monarch and received a check for what was in the account, In this scenario, would I categorize the check received from the closed account as a transfer or an income, or something else entirely?
You probably don't want to look at your year end report and see that treated as income. That will throw of your cash flow report. I would treat it as a transfer if I were you!
How do I set up a meeting with you to go over financial planning.
Hey there! I have a sign up form you can submit with information about my 1-1 services on my website Www.evolvingmoneycoaching.com.