Budgets Are a Waste of Time

(With apologies to our nonprofit friends…)

Let’s start with an apology to our nonprofit customers whose world revolves around budgets. We get it — grant compliance demands a budget. You have to show exactly how funds will be spent. Budgets in your world are a necessary evil.

But for everyone else? Let’s be honest: budgets are a waste of time.

In the for-profit world, a budget is like a New Year’s resolution: full of good intentions and forgotten by February. They’re static. You set them, you tuck them away, and you hope they magically keep you “on track.” But a budget doesn’t help you create results; it just tells you how to spend what you already have. With budgets, you aim low to feel safe. You plan for what you think you can do. Then you call it “realistic.”

That’s not how growth happens.

Why Forecasts are More Valuable than Budgets Every Time

A forecast is different. It’s alive. It moves! It changes as you do.

Forecasts are forward-looking. They don’t ask, “What did we spend?” They ask, “What are we going to make happen next?” A forecast…

• tells you how to make a profit.
• gets updated every month as real numbers roll in.
• helps you see trends early and adjust before the year runs off the rails.
• forces you to make decisions — not excuses.

With a forecast, you’re not reacting to last quarter’s mess. You’re designing next quarter’s success.

How to Stop Thinking Like a Budgeter and Start Thinking Like a Forecaster

Step 1: Start with the end in mind. Decide how much profit you want next year — yes, decide. Profit is a choice, not an accident.

Step 2: Work backward. What level of revenue do you need to hit that goal? What will it cost to get there?

Step 3: Update your forecast monthly. When sales shift or expenses change, adjust the forecast and re-aim. The goal is progress, not perfection.

Step 4: Aim high. Budgets play defense. Forecasts play offense. If you want to grow, you have to stop “budgeting” for survival and start forecasting for success.

Here’s the Bottom Line

A budget tells you how to spend your money.
A forecast tells you how to make more of it.

If you’re serious about hitting your 2026 revenue and profit goals, stop budgeting for what’s safe — and start forecasting what’s possible. Reach out to learn more about how we can help create a living forecast that keeps you on track (and off the hamster wheel).