For many, July is the month the budget process will start for the coming year.

As you look to estimate interest income on your cash for 2024, what should be a good benchmark for the earnings on your cash?

I continue to predict that short-term rates will reach 6.0%+. Therefore, your “average” interest earnings for 2024 should be budgeted at 5.5%.

Just imagine the impact increased earnings could have on your budget: thousands, hundreds of thousands, or even millions of dollars in new revenue—for 2024 alone. That could mean balancing your budget against inflation, boosting pensions and healthcare benefits, funding new equipment purchases, increasing salaries, offering new community services, or even cutting taxes for those you serve.

You can bet 2024 will be a year that will throw us many curve balls. Plan your budget right and the increased earnings on your cash can be your best defense in offsetting unexpected surprises—Or lead to a successfully balanced budget.