Why do I need to add my accounts?
We ask you to add all your accounts as a first step to using the Build My Wealth app. Here are the reasons why:
Because this helps you figure out how much money you’re starting with
One of the reasons why we built Build My Wealth was to help people easily track their financial progress over time. To do that, one of the things that the app needs to know is your starting point.
By adding all your accounts, the app can compute your starting point — a.k.a. your current net worth. This is calculated as follows:
Total Assets - Total Consumer Debt = Net WorthIf you’re unsure what those are, you may learn more about them here.
Once you start updating the account balances, the app will be able to track your financial progress on a monthly basis. It will be able to show you whether your net worth is growing, how financially healthy you are, and how you’re doing with your debt payments.
Because you need at least one account to add a goal
We believe that a financial goal should have a dedicated account.
For example, if you start a savings goal for an upcoming trip, it helps that you separate this money from your other savings. This way, you don’t end up mixing your travel fund with your emergency fund or your retirement fund. You don’t accidentally spend money that is reserved for other purposes. In this case, we advise that you keep these funds in separate bank accounts or cash envelopes.
So, whenever you start a goal, the app will ask you to connect it to an asset or a liability. This is the app’s way of asking, “Where are you planning to keep this money?” or “Which debt are you planning to pay off?”
Because the app will not be able to generate charts and reports if you don’t add your accounts
This is simple. If you don’t add your accounts or don’t regularly update their balances, you will not be able to enjoy the charts and reports inside the Build My Wealth app. And that’s your choice. But I must say, they are pretty awesome charts and reports. You gotta check them out. 😉
