“Models help people. They make them feel good about themselves.” — Derek Zoolander
Derek Zoolander’s words could not be any more correct about financial models!
Before starting this program, the concept of Financial Modelling was absolutely terrifying and I wanted nothing to do with it. I was always really concerned that if my models weren’t 100% correct that I had screwed up big time and it was the end of the world.
But after creating a bunch of them through the Core and through some of the Marketing courses here at Sauder, I realized that the an actual financial model isn’t really as important as the process of creating it.
Creating a model forces you to think and put some logic and thought into the budgets, forecasts and whatever else you’re trying to figure out….instead of just pulling arbitrary numbers out of the air.
In the end, this whole process ends up forcing you to learn a lot more about the problem you’re solving and also is a bit comforting as you end up knowing that you’re numbers aren’t 100% bullshit……..they’re probably closer to 95% bullshit 🙂
P.S. Here’s a snapshot of one model that I worked on
