What is a cashflow projection?
A projection is not a forecast of what will happen, it is a model of what happens if nothing changes. That makes it useful for spotting a tight month early enough to act, and misleading if you treat it as a promise.
What matters here
- Income and expenses placed on dates
- A running balance over time
- Recurring items included once, not guessed
- Clear assumptions you can change
- A view of the tightest point, not just the total
Why timing beats totals
Two months with the same income and spending can feel completely different depending on when rent and invoices land. A projection puts amounts on dates, which is the only way to see that the fifteenth is fine and the twenty eighth is not.
What to include
Recurring bills, known one off costs, expected income and a buffer for the irregular things. Leaving out the annual insurance renewal is the classic way to make a projection look better than reality.
Reading it honestly
The useful output is the lowest point in the balance, not the end total. If the low point is negative, the plan needs changing even if the year ends positive.
Frequently asked questions
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Disclaimer
This page is general information, not professional, legal, financial or medical advice. It describes common ways of working and how Prysm Note approaches them. Software changes over time, so details may differ from what you see in the product. Any product, company or brand names that appear are the property of their respective owners and are used only for identification. We do not claim any endorsement or affiliation. Where we compare approaches, we aim to describe each one honestly, including where a different approach may suit you better. Try the tools that matter to you and judge for yourself.