Forecasting your finances means that we try to predict what's going to happen with your money in the future. We look at how much money you'll be getting (like your paychecks) and how much you'll be spending (like bills or shopping) and then we try to figure out how much money you'll have left over at the end of the month. This way, you can plan ahead and make sure you have enough money for everything you want to do!
Forecasting is the smarter method to manage your money because it puts you in the driving seat. By looking forward and projecting your future income and expenses, you can see how your decisions today will impact your financial situation in the future. It's how the 1% wealthiest manage their money, and it's a game-changer because you can also apply this approach.
By switching to forecasting, you'll be able to think more forward-looking and become more aware of your financial future. This shift in mindset will help you take control of your finances and make smarter decisions.
Overall, forecasting will help you feel more confident, in control, and less stressed about your finances.
Nova uses AI technology to forecast your upcoming transactions, bills, and income based on your past transactions. This is the baseline forecast.
However, forecasting is a collaborative effort between you and Nova. You'll be responsible for inputting any one-time forecasts, such as future investments or planned expenses, into the app.
When combined, these inputs give a complete picture of your financial future. You can see if your plans align with your financial goals and adjust accordingly to avoid ending up in the red zone.
Budgeting and forecasting are two different approaches to managing finances. While budgeting helps you track your past expenses, forecasting helps you predict your future expenses and plan accordingly.
Budgeting may seem easy, but it's not easy to make the right budget, especially when you have to plan for future expenses and goals. It also has limitations, as it doesn't take into account your balance, and it's not designed to help you understand the cash flow implications of credit cards or BNPL. Moreover, budgeting can be hard to track. Most people only check if they are below or above their budget, without considering if they are predicted to stay within budget based on their spending pace.
On the other hand, forecasting has a learning curve and requires understanding some basic financial concepts that we explain in the Nova Academy.
Once you understand the concepts, it becomes easier to understand your finances, and feel confident that you're making the right decisions with your money.
Nova is not like budgeting apps because we're building the first generation of financial forecasting made for individuals. We believe that forecasting is the best way to help people take control of their finances and plan for the future.
While many free personal finance apps are available, it's important to remember that if you're not paying for the product, you're the product. These free apps often need to make money by using your data to advertise you products or sell your data to other companies.
At Nova, we don't sell users' data, nor do we use it to make you spend more. Our focus is solely on providing you with the tools you need to gain full visibility and confidence in your financial future.