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Learn to Forecast, Become Your Own Weatherman

Updated: Dec 15, 2022

The TCB Way

Forecasting is the second step of TCB's approach to financial planning. It is done after you have identified your keys players and have taken record. There are a few simple steps.

Step #1 - Account For All Anticipated Income For the Month

This is different for everyone. If you are receiving government assistance, you must include SNAP, Cash aid, disability, and things of that nature. Unemployment should be accounted for as well. If you have change around the house, gift cards etc., you must account for those as well; whether you intend to use them or not.

You would also include anticipated dividends or earned capital from interest payments for the month.

Step#2 - Find the Total Anticipated Income For the Month

After you have identified them, you will add all of your incoming amounts together. This will let you know and see, what income you have available to you for the month.

Step#3 - Find the Total Anticipated Expenses For the Month

Here, you will do repeat what you've done in Step #2 for your expenses.

Step #4 - Determine Your Forecast

Now, you will subtract your expenses from the income ( total anticipated income - total anticipated expenses). The difference between the two is your forecast.

Why Should You Forecast?

To keep it simple, you need forecast because it will tell you what you month is looking like and will look like ahead of time. If you get a negative number, that means that you are living above your means. This could lead to significant stress and compromises on your financial journey. It'll prompt you to modify your approach to the month, and the moves you'll take. On the other hand, if it's above, you might find, yourself having more funds to contribute to savings, wealth, and other financial goals.

Need Further Help?

If you would like more assistance with forecasting your month(s), please don't hesitate to reach out to us today! We are here to help. Thank you for reviewing this article.


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