The Power of Modelling in Financial Planning

Bringing financial modelling into your personal financial planning can help you achieve the life you want to lead and sooner rather than later.

It is often hard to work out what decisions to take today, to help you realise your future ambitions. You may want to sell your business, buy a holiday home or rental property, start working part-time or retire sooner than originally planned.  But how, and when, do you make the decisions to realise your goals?

The first step is to create a personal balance sheet by working out how much you currently have and what you will need to meet your goals.  This can take a little time, but it is a very worthwhile exercise.

You will need to have a good idea of:

  • your current income such as your annual salary, bonus and any rental or investment incomes,
  • the value of the assets you own such as your house, investments, savings and pensions,
  • how much debt you have, and when you are likely to pay it off.

Once you have a good idea of your personal balance sheet, you can turn your attention to how much you spend per year, and what you would like to spend in the future, including items such as changing cars, holidays, meals out and hobbies.

For the next stage, seeking financial advice would be recommended. You may wish to sell your business in the next few years, pay your children’s college fees, or you may have an inheritance to invest. This is where financial modelling software, also known as cash flow modelling, can help model the future life you wish to live, and enable you to stress test both positive and negative scenarios such as:

  • Ascertaining that you can sell your business in five years rather than ten, and still live your dream life,
  • Understanding the consequences of gifting money to your children for their future,
  • Buying a holiday home rather than going on holiday each year,
  • Whether you can really afford to retire earlier than you think.

Working out whether you are on track to meet your future ambitions and what you can do today to support these goals is powerful. It also makes your financial future tangible.  At SurePlan Financial, we can examine the impact of different approaches and you can benefit from thoroughly informed decisions.

If you feel unsure about how to tackle your financial future, SurePlan Financial can help and advise you. We can use both our financial knowledge and cashflow modelling software to bring your financial plans to life.  By bringing these to life, and analysing different scenarios, we will enable you to make better decisions today, so you can live the life you wish to lead in the future – and sooner rather than later!

If you would like to know more, please feel free to contact us,

Karen Goodliffe
Certified Financial Planner (CFP®) & Qualified Financial Advisor (QFA)
Managing Director, SurePlan Financial



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