Inside Moola’s Financial Modelling Approach

Managing money can feel complicated, especially without a clear roadmap. Many people struggle to understand how much they can afford to save, whether they’re on track for retirement or how to plan for major life goals.

At Moola, we’ve built a structured approach to simplify these decisions. Our method is inspired by financial models used in business consulting: tools that help companies make confident, strategic choices. We’ve adapted this process for personal finance, making it accessible to anyone.

This guide explains how our financial modelling works.

The Foundations: Net Income and Net Wealth

Our model revolves around two core numbers:

• Net Income: Your cash flow—what remains after covering your expenses.

• Net Wealth: A snapshot of your overall financial position, calculated by subtracting debts from your total assets.

By tracking both, we balance immediate needs with long-term goals.

The Three Stages of Moola’s Approach

We break financial planning into three clear stages:

Stage 1: Your Do-nothing (Baseline) Scenario

This stage shows where your finances are headed if you make no changes at all. It projects your current income, spending, and assets into the future.

The baseline highlights whether your current path is sustainable or whether you’re heading toward potential shortfalls.

Stage 2: Your Goals

Next, we add your financial goals—such as buying a home, saving for education, or planning for retirement. We show the full financial impact of each goal, including both the upfront costs and long-term effects on your finances. This makes it easy to assess how far you are from reaching your goals based on your current situation.

Stage 3: Financial Levers

Finally, we explore practical actions—what we call “financial levers”—tailored to you and your financial position that can help you accelerate towards your goals.

These levers fall into two groups:

• “No-Brainers”: Simple actions like reducing expenses or increasing income, which benefit nearly everyone.

• Interdependent Levers: More complex strategies such as investing more, adjusting retirement contributions, or refinancing debt. These require trade-offs and prioritisation.

Our model shows the likely impact of each lever on both your cash flow and net wealth, helping you to make informed and thoughtful decisions.

Why This Approach Works

This method applies the same rigour companies use for large financial plans, but tailored for everyday personal finances. With backgrounds in consulting and financial advisory, our team have seen how structured analysis leads to better decisions.

With Moola, you can navigate even complex financial situations with ease and confidence.

Try Moola today.

We’re currently onboarding early users to our Alpha Program. Participants will receive:

📩 A personalized financial health report, co-developed with Moola’s product team

🙋🏻‍♀️ Actionable recommendations based on your unique goals and financial profile

💡Early access to our web platform and upcoming GPT-powered financial guidance

💭 Join the Alpha and start making informed decisions with clarity and confidence.

Who can join:

✔ UK tax resident

✔ Aged 28–40

✔ Any level of financial knowledge

✔ Willing to complete onboarding, stay engaged in modelling process by providing comments and clarifications, complete final survey at end of process

Join the Alpha Program