How do I ensure extra income is saved or invested?

The Flows section allows you to allocate extra income to be saved or invested. For each year, excess income is computed automatically based on your income, expenses, debt payments, taxes due, and other inputs. You can set your Flows to reflect your top goals.

Within a plan, you can add Flows for existing accounts that are already in Current Finances, or a variety of new accounts that you need to add to your plan. Each type of account comes with its own set of inputs and configuration options.

Example walkthrough

Here’s a sample setup:

1. Top priority: contribute 3% of your salary to your 401(k)
2. Second priority: contribute $2,500 to your Roth IRA
3. Final priority: Maximize Contribution to your Taxable Investments

Add a 401(k) flow

If you already created a plan, scroll down below the graph and click Flows, then click + to add a flow.

Choose your Employer Retirement Account e.g. 401(k) > click Goal > choose your source of income to fund this goal (typically a salary) > set Your Contribution to 3% > set your Employer Contribution to the applicable percent > set the Yearly Contribution Limit to US Limit to avoid exceeding the maximum retirement contribution. Click Add.

Add a Roth IRA flow

Click + > choose your Roth IRA account > set the contribution to Specific Amount > set the Frequency to Yearly > set the contribution amount to $2,500 > set the Yearly Contribution Limit to US Limit. Click Add.

Add a Taxable Investments flow

Click + > choose your Taxable Investments account > set the contribution to Maximize Contribution > set the time range start and end. Click Add. This acts as a catch-all for anything left over after the higher-priority flows.

Save or spend anything left over

Your final option determines what happens to any remaining income after all flows are addressed:

• Save anything left over – add any extra income to your cash holdings.
• Spend anything left over – spend any extra income after handling the flows above. Appears in Expenses as “Discretionary Spending.”

If you’re planning to invest all of your extra income, choose Save anything left over.