Your Savings is calculated by subtracting your Funds from your Cash Reserve.
Your savings is negative in one of two ways.
- You have more money in your Funds than is available in your Cash Reserve.
Your Cash Reserve is how much we calculate is available cash for spending. If you have more money allocated in your funds than you actually have in your Cash Reserve, your savings will be negative.
In other words, your plan for future spending is greater than the amount of money you have. For example, if you have earmarked $3,000 for that vacation but we forecast you will only have $2800 then you will have a -$200 negative savings.
You can make your savings positive by reducing the balances in your Funds.
- Your Cash Reserve is negative
If you have no Cash Reserve, you can have no savings. The Cash Reserve is the amount of free cash you have. Savings is what is left over after you spend all the money in your Funds out of your Cash Reserve.