Forecasting is the science of predicting future outcomes. Creating a financial forecasting plan will prepare you for present and future expenses and ensure that you don´t overspend. By preparing and planning your finances in advance, you prevent yourself from plunging further into debt.

The difference between Budgeting and Forecasting services that we offer is simple. We create the Budget Plan for a specific time period based on the full picture of your finances. The budget plan does not change frequently when budgeting for fixed income and fixed costs. For instance, full time salaried employees receive the same amount in their paychecks (excluding pre-tax items), and the monthly household bills are generally the same charges (excluding credit cards balances).

When it comes to Forecasting, you should account for variable changes such as planning for vacation, birthdays, anniversaries, weddings. Other items may include prescriptions, subscriptions, memberships, and annual expenses. Annual expenses may include auto insurance, car repair/maintenance, vehicle tax, insurance, property taxes, house repair, maintenance fees, accounting fees, etc. Some of these items are charged monthly, however, certain items you may decide to cancel the services to meet your budget needs. Hence, this is considered variable as you can decide to cancel anytime, but you cannot cancel your electricity service (well, you shouldn´t).

Do you frequently experience more or less money in your checking account? Do you panic when your checking balance gets low and wonder where the money disappeared to? Do you keep a detailed running balance?