Forecasts are something that we associate more with the chance of rain or, hopefully, the federal budget. Forecasting for our personal budget is a great additional tool that can really help make our budget work. Whether for an individual or a family of seven, forecasting is a helpful monthly activity for a household budget to remain on track and a useful tool for financial management.
The purpose of your family budget is to ensure that your expense amounts and your income amount match and your spending align with your family priorities. As we all know, when expenses exceed income, financial trouble eventually ensues. Forecasting helps the budgeting process because expenses and income sources are rarely the same for all months of the year and a forecast that anticipates these variations is critical to ensure your budget remains valid throughout the year.
Here are Five Critical Steps in the Family Budget Forecasting Process:
Forecasting helps the budgeting process because expenses and income are rarely the same for all months of the year and a forecast that anticipates these variations is critical to ensure your budget remains valid throughout the year. Use forecasting as an essential step in your family budget process to ensure expenses and income sources match throughout the year. Finally, use this process to ensure that you are forecasting your emergency savings as well as your retirement plan.
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About the blogger:
Chad Storlie is the author of two books: Combat Leader to Corporate Leader and Battlefield to Business Success. Both books teach how to translate and apply military skills to business. An adjunct Lecturer of Marketing at Creighton University and Bellevue University in Omaha, NE. Chad is a retired US Army Special Forces officer with 20+ years of Active and Reserve service in infantry, Special Forces, and joint headquarters units. He served in Iraq, Bosnia, Korea, and throughout the United States. He was awarded the Bronze Star, the Combat Infantryman’s Badge, the Meritorious Service Medal, the Special Forces Tab, and the Ranger Tab. In addition to teaching, he is a mid-level marketing executive and has worked in marketing and sales roles for various companies, including General Electric, Comcast, and Manugistics. He has been published in The Harvard Business Review blog, Business Week Online, Forbes, Christian Science Monitor, USA Today, and over 40 other publications. He has a BA from Northwestern University and an MBA from Georgetown University.
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