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Projected Balance

The Projected Balance feature in Arthalekha shows your expected future account balances based on recurring transactions. It helps you plan ahead and avoid financial surprises.

What is Projected Balance?​

Projected balance combines:

  • Your current actual balance
  • Scheduled recurring incomes (money coming in)
  • Scheduled recurring expenses (money going out)
  • Scheduled recurring transfers (money moving between accounts)

This shows you what your balance is expected to be in the future.

Why Use Projected Balance?​

Financial Planning​

See ahead to plan for:

  • Large upcoming expenses
  • Whether you'll have enough for a purchase
  • When you'll reach savings goals

Avoid Overdrafts​

Know in advance if:

  • An account might go negative
  • You need to transfer funds
  • You should delay a purchase

Cash Flow Management​

Understand:

  • When income arrives vs when bills are due
  • Gaps in cash flow
  • Optimal timing for large expenses

Accessing Projected Balance​

Account-Level Projections​

From any account's detail page:

  1. Navigate to the account
  2. Click on "Projected Balance" or similar
  3. View day-by-day projections for that account

Dashboard Projections​

The projected dashboard shows:

  • Month-by-month projections
  • Multiple months ahead (12+)
  • Aggregate view across accounts

Family Mode Projections​

Switch to Family Mode to see combined projections from all family members:

  • View all recurring transactions from the entire household
  • See consolidated projected balances
  • Perfect for understanding household-wide cash flow
  • Access via the mode toggle in the navigation bar

Understanding the Projection View​

Daily Projections​

For each day in the future, see:

ColumnDescription
DateThe projected date
Expected IncomeRecurring incomes due that day
Expected ExpensesRecurring expenses due that day
Transfers InRecurring transfers into the account
Transfers OutRecurring transfers out of the account
Projected BalanceExpected balance at end of day

Monthly Summary​

The monthly projected view shows:

  • Beginning balance for each month
  • Total expected income
  • Total expected expenses
  • Net change
  • Ending balance

How Projections are Calculated​

Starting Point​

Projections start from:

  • Today's actual balance
  • All recorded transactions up to today

Future Transactions​

The system adds:

  • Each recurring income on its scheduled date
  • Each recurring expense on its scheduled date
  • Each recurring transfer on its scheduled date

Day-by-Day Calculation​

Day 1 Balance = Today's Balance + Day 1 Income - Day 1 Expenses ± Day 1 Transfers
Day 2 Balance = Day 1 Balance + Day 2 Income - Day 2 Expenses ± Day 2 Transfers
...and so on

Example Projection​

Starting scenario:

Today's Balance: ₹1,00,000

Recurring transactions:

1st of month: +₹75,000 (Salary)
5th of month: -₹20,000 (Rent)
10th of month: -₹15,000 (Car EMI)
15th of month: -₹10,000 (Transfer to savings)

Projection for next month:

1st:  ₹1,00,000 + ₹75,000 = ₹1,75,000
5th:  ₹1,75,000 - ₹20,000 = ₹1,55,000
10th: ₹1,55,000 - ₹15,000 = ₹1,40,000
15th: ₹1,40,000 - ₹10,000 = ₹1,30,000
End:  ₹1,30,000 (no more transactions)

Projection Accuracy​

What's Included​

Projections include:

  • All recurring incomes with future dates
  • All recurring expenses with future dates
  • All recurring transfers with future dates

What's NOT Included​

Projections do NOT include:

  • One-time transactions you haven't recorded yet
  • Variable expenses (groceries, entertainment)
  • Unexpected income or expenses

Improving Accuracy​

To make projections more accurate:

  1. Set up ALL recurring transactions
  2. Keep amounts up to date
  3. Add recurring items for regular but variable expenses (estimate amounts)
  4. Review and adjust regularly

Using Projections Effectively​

Scenario Planning​

Ask "what if" questions:

  • What if I increase my SIP by ₹5,000?
  • What if I add a new subscription?
  • Can I afford this purchase next month?

Goal Tracking​

Track progress toward goals:

  • "When will I have ₹5,00,000 saved?"
  • "Will I hit my target by December?"

Early Warning​

Get advance notice of:

  • Months with negative projected balance
  • Times when multiple large expenses align
  • Periods when cash flow is tight

Interpreting Projections​

Healthy Projection​

A healthy projection shows:

  • Consistently positive balances
  • Balance growing or stable over time
  • No unexpected drops

Warning Signs​

Watch out for:

  • Projected balance going negative
  • Steady decline over months
  • Large drops around specific dates

Taking Action​

When projections show problems:

  1. Identify the cause (which expenses?)
  2. Consider adjustments (delay purchases, reduce spending)
  3. Plan for additional income if needed
  4. Set up transfers to cover shortfalls

Projection Time Horizon​

Short-term (1-3 months)​

Most accurate because:

  • Fewer unknowns
  • Recurring items are reliable
  • Less time for changes

Medium-term (3-6 months)​

Reasonably accurate but:

  • Some expenses may change
  • New recurring items might appear
  • Life changes happen

Long-term (6-12+ months)​

Use as a guide, understanding:

  • Many things can change
  • Amounts may need adjustment
  • Good for goal setting, not precision planning

Best Practices​

Complete Recurring Setup​

For accurate projections:

  • Add ALL recurring income sources
  • Add ALL subscriptions and memberships
  • Add ALL loans, EMIs, regular bills
  • Add ALL scheduled savings/investments

Regular Updates​

Review recurring transactions when:

  • You get a salary increase
  • Subscription prices change
  • You start or stop services
  • Loan tenure changes

Use Projections for Decisions​

Before major financial decisions:

  • Check the projected balance impact
  • See if you can afford it
  • Plan the best timing