Actual balance versus plan

Plan variance is the difference between your actual total balance and the value expected by the financial plan.

Read the variance

• Positive variance means the actual balance is above plan.
• Negative variance means the actual balance is below plan.

Neither sign explains the cause. A positive result, for example, could come from unexpected income or a required payment that was postponed.

What to check when the difference is significant

1. Compare the saved account balances with their actual values.
2. Update any accounts that have not been checked recently.
3. Make sure income and expenses use the correct type.
4. Check transaction amounts, currencies, dates, and frequencies.
5. Find events that were cancelled, moved, or changed.
6. Add new commitments that are missing from the plan.

What to do after checking

If balances were stale, update them. If future circumstances changed, edit the relevant transactions. Do not erase every variance simply to make the numbers match: it is a useful signal that reality has moved away from the original scenario.

After making changes, open the budget forecast and make sure the following months reflect the new conditions.