We have seen the importance of separate personal and business money. That gave you clarity on where your business money lives. Now it’s time to answer the next big question:
👉 Do I have enough money coming in to cover what’s going out, and what’s ahead?
That’s what a budget and forecast does. And you don’t need to be an accountant or build a 15-tab spreadsheet. A simple one-page view is all it takes to bring peace of mind.
Why Every Solopreneur Needs a Forecast
- Avoid surprises: Know if next month’s bills are covered.
- Make decisions: Can you afford a new tool? Take a holiday? Hire help?
- See growth: Compare what you planned vs. what actually happened.
- Reduce stress: When you know your numbers, you stop guessing.
Without a forecast, your finances run you. With one, you run your finances.
Step 1 — List Your Income Sources
Start with expected money coming in. Keep it simple:
- Ongoing clients or contracts (retainers, recurring invoices).
- One-off projects you’ve already booked.
- Other income (affiliate, side gigs, etc.).
💡 Tip: Don’t count “potential” deals. Only what’s confirmed.
Example:
- Client A Retainer → $1,200/month
- Client B Project → $800 in March
- Workshop Sales → $300 in April
Step 2 — List Your Expenses
Next, note everything you pay to keep the business running:
- Fixed expenses (rent, internet, subscriptions, insurance).
- Variable expenses (ads, travel, contractors).
- Taxes (set aside a %).
💡 Tip: If you’re not sure, check your last 2–3 months of bank/credit card statements.
Example:
- Software (Notion, Canva, Adobe) → $120/month
- Rent/Coworking → $400/month
- Taxes → ~20% of income
- Misc Tools → $50
Step 3 — Put It Into a Monthly View
Now spread those numbers across the next 3–6 months. You don’t need to be exact, estimates are fine.
Example (3 months):
| Month | Income | Expenses | Balance |
| March | $2,000 | $1,200 | +$800 |
| April | $1,500 | $1,300 | +$200 |
| May | $2,000 | $1,200 | +$800 |
See how April is already tight? That’s the power of forecasting: you spot gaps early.
Step 4 — Compare Forecast vs. Realized
A forecast is just a plan, reality will be different. The key is to track both.
- Forecast = what you expect.
- Realized = what actually got paid.
At the end of each month:
- Replace forecast numbers with real income and expenses.
- Note the difference (e.g., “+15% better than expected” or “-$200 short”).
This teaches you to budget smarter next time.
Step 5 — Review & Adjust Monthly
Forecasting isn’t a one-time task. Make it a habit:
- Add new clients/projects as soon as they’re confirmed.
- Adjust expenses if something changes (new subscription, rent increase).
- Always look 2–3 months ahead.
Tools & Templates
- Paper or Spreadsheet: Totally fine to start. One tab for Income, one for Expenses.
- Bank apps: Some show recurring charges, but rarely give the full picture.
- Stravor: Automatically pulls from invoices and bills, shows Forecast vs. Realized with visual charts. Overrides let you adjust manually for a clearer plan.
Your Action Plan (Do This Today)
- Write down your 3 main income sources and 3 main expenses.
- Spread them over the next 3 months.
- Calculate the balance (Income – Expenses).
- Highlight the “tightest” month.
- Commit to updating it once a month with actuals.
Final Thoughts
A budget and forecast is not about predicting the future perfectly — it’s about reducing surprises and making better decisions with the money you already have.
With this one-page method, you’ll know whether you can breathe easy or need to push harder for new work. And with Stravor, you don’t even have to maintain the spreadsheet, it’s visual, automated, and always ready.