Budget vs. Forecast (explained through a road trip)
Imagine you’re going on a road trip. Your favourite sunny place, just a few hours away.
You and your family just can’t wait. It has been a while since you went on a proper holiday.
But then you realise you can’t all just leave like this. You need to plan ahead.
You need an initial BUDGET Before you say good bye.
This is your guide to make sure you have enough resources to reach your dream place.
It’s no different from what businesses do.
But what should your budget have? 3 main points.
Places you want to visit, money you need for gas/hotels.., money you have available.
Once your budget is done, you’re all ready to leave!
Now, during your trip, there are still some things you have to do :
Look at current weather reports and traffic updates (current financial data).
Adjust your plan based on this (adjust your expenses and income expectations)
This is your FORECAST.
If there's a storm on your route, you need to take a different road.
That’s what forecasts are here for.
So you can stay on track and reach your goal even if conditions change.
Check and adjust regularly throughout your trip and you should be just fine.
To recap :
Budget: Your road trip plan before you start and leave.
Forecast: Weather and traffic checks so you can adjust your route during your trip.
Can you see now why you need both ?
This is how you:
manage your finances
ensure that your plans are realistic and adaptable to changing conditions
Now your most wanted time is here : sun, sand, barbecue, are all yours.
You can finally relax and enjoy the place of your dreams..
Let’s get you there.
Download this free Financial Dashboard so you can
Track your financial performance year on year to see how you’re doing
Spot variations so you can head off oddities before they become problems.
