After all these years in the finance domain, I have come across a very frequent question from finance aspirants: “How to do financial modeling?”
Since understanding of financial model is one of the key tasks involved in any finance profile, every aspiring investment banker, financial analyst or any finance professional, should know how these models work.
In the current age of information & technology, learning these models and their functionality has become much easier than ever before.
I have listed down a few very easy ways of getting to learn financial modeling.
How to learn financial modeling?
1. Learn by watching tutorial videos
There are a bunch of websites available these days that offer financial modeling free tutorial videos for aspiring finance professionals.
If your understanding of financial models is very basic, tutorial videos are recommended, as you can repeatedly go and watch them if you do not understand anything at the first go.
These videos are uploaded by experts in the finance field and by various educational institutes.
Most of these videos on the Internet are free, but there are also websites that offer subscription to these videos at a certain fee.
2. Learn by attending virtual classroom training sessions
There are virtual classrooms wherein you can login either collectively with peers or individually (depending on the format) to a webinar/remote access platform monitored by a trainer.
These sessions are interactive in nature and also offer an opportunity of peer learning.
These sessions offer a deeper understanding when compared to videos, as you can ask questions if you are stuck at any point during the session.
These sessions are conducted by various educational institutions and online learning portals, usually at a certain price.
But you can also find these sessions for free as a result of promotional campaigns by these institutes.
Usually they offer the first module as a free bee, and if you like the training model you can subscribe for the entire course.
3. Learn by practicing and using case studies
This approach is less normative in nature and requires a lot of your time in practicing.
There are solutions available for cases as well so that you can compare your work with the actual model in use and understand the difference.
These case studies and practice material is widely available on the Internet and mostly does not require any subscription.
But there are paid subscriptions by a few institutions and portals which offer these case studies and also offer a detailed evaluation of your exercise.
4. Distance learning courses
This is the most result oriented way of learning financial modeling in excel.
There are institutes and portals offering these courses over a period of time at a certain fees.
The biggest advantage of taking this course is that typically at the end of the course you will be awarded a certificate stating you are a professionally trained professional in financial modeling.
One of the most popular courses for this is Wall Street Modeling Course amongst various others.
I hope this post gives you enough clarity on options in choosing your own method of learning financial modeling using excel.
Now You Try It
I hope you can see the potential of financial modeling for your career.
Yes, it takes hard work to create something great.
But with this skill you are ahead of rest of the crowd and your hard work is going to pay off.
I want you to start watching the videos. Do let me know how it works for you.
If you have a question or thought, leave a comment below and I’ll get right to it.