Projected Cash Flow

📖Core Concepts

Understand the key concepts behind cash flow projections and how Projected Cash Flow works

Last updated: 1/21/2025
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Core Concepts

Understanding these key concepts will help you get the most out of Projected Cash Flow.

Cash Flow Projection

A cash flow projection shows your expected account balances over time based on:

  • Current account balances
  • Recurring income and expenses
  • Planned one-time transactions

Why Projections Matter

  • Avoid overdrafts by seeing when accounts might run low
  • Plan purchases by understanding when you'll have funds available
  • Optimize transfers between accounts to maximize interest
  • Track progress toward financial goals

Recurring Transactions

Recurring transactions are the foundation of accurate projections.

What We Consider Recurring

  • Fixed recurring: Same amount, regular schedule (rent, subscriptions)
  • Variable recurring: Different amounts, regular pattern (utilities, credit cards)
  • Seasonal recurring: Annual or quarterly payments (insurance, taxes)

Detection Algorithm

We automatically detect recurring patterns by analyzing:

  • Transaction descriptions
  • Amounts (with tolerance for variations)
  • Timing patterns
  • Merchant information

One-Time Transactions

These are non-recurring transactions you want to include in projections.

Use Cases

  • Planned purchases: New laptop, vacation, home improvement
  • Expected income: Bonus, tax refund, gift
  • Transfers: Moving money between accounts
  • Irregular bills: Medical expenses, repairs

Impact on Projections

One-time transactions immediately affect your projected balance from their date forward.

Account Types

We support various account types from Lunch Money:

Cash Accounts

  • Checking accounts
  • Savings accounts
  • Money market accounts

Credit Accounts

  • Credit cards (shown as negative balances)
  • Lines of credit

Investment Accounts

  • Brokerage accounts
  • Retirement accounts (401k, IRA)

Projection Timeline

Default View

  • 90 days into the future
  • Daily balance calculations
  • Aggregated by week/month for longer views

Customization

  • Adjust date range up to 1 year
  • Focus on specific periods
  • Compare different scenarios

Balance Calculations

Daily Balance Formula

Tomorrow's Balance = Today's Balance 
                   + Scheduled Income
                   - Scheduled Expenses
                   + One-time Additions
                   - One-time Deductions

Multi-Account View

  • See individual account projections
  • View total cash position across all accounts
  • Identify which accounts need attention

Recurring Transaction Management

Ignoring Transactions

Sometimes a recurring transaction has a one-time variation:

  • Different amount due to promotion
  • Skipped payment
  • Early/late payment

You can "ignore" these instances without affecting the recurring pattern.

Editing Patterns

  • Adjust expected amounts
  • Change frequency
  • Set end dates for subscriptions

Data Synchronization

Real-Time Updates

  • Balances update when you refresh from Lunch Money
  • New transactions are analyzed for patterns
  • Projections automatically recalculate

Manual Refresh

  • Use the refresh button to pull latest data
  • Recommended daily for accuracy
  • Required after making changes in Lunch Money

Security & Privacy

What We Store

  • Encrypted Lunch Money API key
  • Your projection preferences
  • Custom one-time transactions

What We Don't Store

  • Your actual transaction data (fetched on-demand)
  • Bank credentials
  • Personal financial details

Best Practices

  1. Regular Updates: Refresh data daily for accurate projections
  2. Review Recurring: Check detected patterns monthly
  3. Plan Ahead: Add one-time transactions as soon as you know about them
  4. Monitor Trends: Use longer time ranges to spot patterns

Next Steps

Now that you understand the core concepts:

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