5 Best Ways to Learn Financial Modelling by Yourself

Financial modelling is critical to a business because it helps us forecast the company’s financial health, earnings and performance. Whether you are an employee or own a business, having this skill will definitely upgrade your skill set! 

However, you might wonder how to learn financial modelling. The answer is simple! Depending on your convenience, you can enrol in a financial modelling course either online or offline. Read this blog to find out five ways to learn financial modelling all by yourself! 

  1. Brush Up Your Excel Skills

Excel is not simply a sheet with rows and columns stitched together. It is a powerful tool that can help you in financial modelling. Excel allows you to convert data into graphs, making comparison and visualisation easier. 

Therefore, if your excel skills are dicey, it is time to upgrade them! You can enrol in an advanced excel course or simply find video tutorials online and follow them!  The key here is to use every online learning platform with maximum efficiency to acquire all the required skills! 

  1. Refer to Textbooks

Yes, the old-school method works fantastically! You can either go to a library and borrow a book or download a pdf version online. Textbooks on financial modelling can provide you with deep insights into topics along with various examples.

Equipped with this knowledge, you can better grasp the fundamentals and specifics of financial modelling! 

  1. Learning Financial Statement Analysis

Financial statement analysis is one of the key components of financial modelling. To create financial models, you need to understand financial statements and the data they contain. 

While there are many elements in a financial statement, we will condense them all into three branches. The first one is the cash flow statement which outlines the amount of money going out and coming in.

The second component is the profit and loss statement which represents the sales and expenses of a stipulated time period.

The third component is the balance sheet, an overall summary of a business’s finances. It also balances the assets and liabilities that a company has. Remember that liabilities + equity = assets.

You can learn more about these financial statements from a financial modelling course! 

  1. Practice and Create Scenario Models

The first three ways will help you obtain all the necessary theoretical knowledge required to make a financial model. It is now time to put it into practice. You can create your own hypothetical scenarios and design financial models that fit the situations perfectly.

This will not only put your theoretical knowledge to the test but also help you retain the information in your brain forever! 

  1. Model on Case Studies and Create Templates

Once you are confident with your hypothetical models, it is time to test them in the industrial world. Pick any of the case studies and design financial models. 

You can always compare your models with real-life models to better understand your current status. You can also create sample templates that can be used for future references.


Finally, remember to document everything because your documentation will act as reference material for the future, especially when you feel confused or lost. If you are unsure how to learn everything by yourself, take the help of a financial modelling course and kickstart your journey! 

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