Similar to a 3-9 forecast, a 2-10 rolling forecast is a financial planning model where actual results are combined with a plan. This model, however, takes data from the last 2 months as a starting point and combines them with a forecast for the upcoming 10 months.
Yes, 3+9 means 3 months actuals 9 month budget/forecast. Typically, budget is built and leaned upon heavily the first portion of the year. Forecast comes into play once trends are realized. Basically, the forecast is an adjusted budget with new information.
To put it in perspective, nine figures represent anything from $100,000,000 all the way up to $999,999,999. This figure surpasses the GDP of several small nations. For instance, Samoa reported a GDP of approximately 830 million USD in 2022.
By updating the forecast every month or quarter, businesses ensure they are always aligned with their strategic goals. The 9-month projection allows for longer-term planning while the 3 months of actual data keep the focus on immediate execution.
Often known as “3+9,” “6+6,” and “9+3,” the first number represents months of actual results completed while the second number represents the months remaining until the accounting year-end.
The most common in my practice is a 6+6 budget that shows six months of actuals and six months of forecasts. As the year progresses, forecasts should become more accurate.
Six figures can be anywhere between $100,000 – $999,000. Depending on where you live, six figures is considered rich by many people's standards. A top 1% income earner in America makes about $470,000 a year nowadays. Further, it takes at least $3 million to be a real millionaire now thanks to inflation.
10,000 = 5 figures, 1,000,000 = 7 figures. So, for an example: 2,000 = 4 figures. 2,675 = 4 figures. 80,000 = 5 figures, 82,350 = 5 figures etc.
Here's an example: If you make $3,000 each month after taxes, $1,500 should go toward necessities, $900 for wants and $600 for savings and debt paydown. Find out how this budgeting approach applies to your money. Monthly after-tax income. Do you know your “want” categories?
The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings.
The three biggest budget items for the average U.S. household are food, transportation, and housing. Focusing your efforts to reduce spending in these three major budget categories can make the biggest dent in your budget, grow your gap, and free up additional money for you to us to tackle debt or start investing.
For example, a “3+9” RF, uses 3 months' actual data and 9 months' forecasted data. Any rolling forecast planning process requires revisions to accommodate the latest strategy decisions from a top-down approach. The rolling forecast is prepared regularly throughout the year to reflect changes in the industry or economy.
In a Rolling Forecast companies typically plan for 12, 18 months or a rolling 4,8 Quarters. The Forecast goes beyond the current year. Forecast the entirety of the Current Year plus a portion of the following year. Less focus on the “YearTotal” and more on the Rolling Forecast Range.
A 12-Month Rolling Forecast is a dynamic financial projection that extends beyond the conventional annual budgeting cycle. Unlike fixed annual budgets, this forecasting method involves updating and reforecasting every month, allowing for real-time adjustments based on evolving circumstances.
Introduction to seven figures
Such income levels are rare, with only about 0.3% of Americans earning a million dollars or more per year.
It may surprise you to know that making 6 figures is hardly the norm in the US—even on the lower end of the range. According to the US Census, about 16% of American households make between $100,000 and $149,999, 9% of households make between $150,000 and $199,999, and another 12% earn $200,000 or more.
CEOs, stakeholders, traders, software developers, celebrities, social media influencers, professional athletes, real estate agents, financial planners, brand owners, and inside sales representatives. These are some of the most common jobs that can help you earn an 8-figure income.
Some workers begin earning six figures in their twenties and thirties. Economists nickname them HENRYs, for “high earners, not rich yet.” But for most people, their “peak earning years” are from age 35 to 54. The majority of people who make six figures will do so in their 30s.
What Is the 50/30/20 Rule? The 50-30-20 rule involves splitting your after-tax income into three categories of spending: 50% goes to needs, 30% goes to wants, and 20% goes to savings. U.S. Sen. Elizabeth Warren popularized the 50-20-30 budget rule in her book, "All Your Worth: The Ultimate Lifetime Money Plan."
Quick Take: The 75/15/10 Budgeting Rule
The 75/15/10 rule is a simple way to budget and allocate your paycheck. This is when you divert 75% of your income to needs such as everyday expenses, 15% to long-term investing and 10% for short-term savings. It's all about creating a balanced and practical plan for your money.
At each month end it's good to track your performance against the forecast to see if you're on track. A '3+9' forecast shows 3 months of actuals and 9 months of forecast. A '6+6' shows 6 months of actuals and 6 months of forecast.