Every year I create a forecast for what I think the next year will hold when it comes to expenses. It isn't the end of my budgeting journey for the year though, rather the beginning. Creating a forecast allows me to determine if my template (the amount I put into my budget in each category every month standardly) is going to work for my anticipated income as well as decide what goals are feasible for the year. Whether I can do the landscaping project I want to do in this calendar year or have to wait until next year for instance- if I do it this year then I will have to give up other things that are important to me, or at least cut back spending on them. It lets me focus my priorities and set attainable (as well as stretch) goals for my year.
There is a template below if you would like to create your own yearly forecast. It is fairly simple in design so feel free to let me know of any tweaks you would like to see for future versions.
Until next time,