Abstract: A method and system for financial allocation and forecasting for calculating daily, weekly, and monthly spending rates that can be used by a company or a person is disclosed, providing an over/under forecast variance. The forecast variance is converted to the number of days required to reduce all spending to zero to eliminate over spending. The method receives financial data either manually or by a program application and treats all transactions as cash equivalents. The method includes a plurality of program applications formulated to generate a plurality of forecasting parameters. A rate factor which is a subjective decision of the user is received from a range ?3 to +3 to automatically calculate an under/over value variance. The invention utilizes Gregorian calendar that has a five week month occurring every three months to identify 7.7% savings of yearly income. Further, the method converts the irregular yearly and quarterly expenses into monthly amounts and put the expenses in savings.