Painless Financial Training Group Inc.
Amateurs use these words interchangeably, but each of these terms means something different. A budget is intended to motivate, a forecast is the most likely set of predictions and a projection is based on any set of numbers. Think about the weather – we call that a forecast – not a budget, because no one can motivate the weather. If you have a budget you can turn it into a forecast by replacing each months budget with the actual numbers as the months go by. Keep the budget, but change it each month to a forecast by entering the actual results.
