After you connect your accounts via Plaid, you’ll have access to a host of other features within the BodesWell application. These features include improving the accuracy of your projections, creating savings goals, tracking the progress of your budgets and much more. Interestingly, all of these features stem from the same foundational element, transaction history. Using your transaction history, BodesWell sorts through both your typical and atypical transactions to best understand your true earning and spending patterns.
So, let’s deep dive into transactions and how they’re a critical component of your experience with BodesWell.
BodesWell has a sophisticated outlier system embedded within it that is designed to flag abnormal transactions, notify you of them, and request your review. BodesWell defines abnormal transactions as any transaction over $100 that is three standard deviations or more from your average transaction amount within that spending category. For example, if you typically spend an average transaction amount of $5 at Starbucks, but one day you spend $125 at Starbucks buying coffee for the entire office, that transaction would be labeled as in need of review within BodesWell.
When you enter the review screen, a list of the flagged transactions will appear and you’ll be able to make edits to the transactions as needed. You can then decide if you want to keep BodesWell’s automated decisions by approving each transaction, or you can make any changes (such as changing the frequency or the category) by editing the transaction fields and saving them once you are satisfied. All check-related transactions will be flagged for review since they fluctuate greatly in frequency, amount, and spending category.
Reviewing and updating outlier transactions helps BodesWell learn more about your current and past transactions and allows us to better project your future income and expenses. To learn more about how BodesWell projects future income and expenses, please read our Monte Carlo and Projecting the Future Value of Your Assets articles.