Rudder's Savings Planner makes saving as easy as 1,2,3
A new tool from Rudder, a personal finance tool that looks to the future instead of pie charts of the past, has created the Savings Planner to create a personalized savings plan in less than five minutes.
What's even better, you don't even need to create a login or sign up for Rudder to get your savings plan, though there are benefits to doing so. The new savings tool will have you planning for a future of rewards and financial security in just three steps.
To get started you tell Rudder how much you can save a month, what you currently have in savings and what your emergency fund or rainy day savings currently are. Next you identify what goals you want to save for, assign them a target date for completion and presto you have a savings plan.
The third step is looking at your current savings amount and goals to see if you can meet your deadlines and then make adjustments. If you chose to enter your current interest rate you can also compare how much extra cash you would save by switching to a higher yield savings account with a quick glance to the deals section of the Savings Planner.
The Savings Planner automatically gives your emergency fund, and three to four months of living expenses -- a priority since most Americans don't have enough saved to handle the sudden loss of a job or major life event without resorting to credit cards. After your rainy day fund is full\y funded it will disappear from your plan and you'll be on your way to meeting more savings goals.
This brings me to the biggest issue I had with the savings tool -- you can only save toward one goal at a time. This limitation is a decision that the Rudder team didn't take lightly; but in the end they found significant evidence that savers did better when they focused on one goal and were rewarded with a waterfall effect and gives users milestones along the way.
In a phone interview, Nikunj Somaiya and Nikhil Roy, Rudder's founders, told WalletPop that in the future they may add the ability to save toward multiple goals to meet the demands of users, like myself, who want to save toward something large like a home down payment as well as a new computer. But for the time being they stuck with a simple interface that would help get more people in the habit of saving.
"Although other PFM tools have done a phenomenal job of building a great interface and automating the historical analysis of financial data," says Nikunj, "we believe they fall short on giving users simple, yet critical advice on what they need to do going forward. We believe the combination of our What's Left cash flow feature and savings planner help fill that void."
The good news for users who sign up and use the Savings Planner as a dynamic tool is that you can easily make changes in goals to accommodate events that happen in your life so that you don't fall off the savings wagon and, if you slip, you can see how to get back on track. That and the ability to connect the Savings Planner directly to the Rudder What's Left tool, and the rest of site, to help you know exactly what you have left after all of your financial obligations are met.
There are other ways to create a savings plan, but Rudder's Savings Planner is by far the easiest and quickest way to start saving. If you don't already have a savings plan, even just for an emergency fund, you should go test it out today.