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Financial Goals

About

Overview

The Financial Goals feature in Finuncle empowers you to create sophisticated, quantitative goals using formula-based KPIs (Key Performance Indicators) built from your financial fundamentals. This powerful system allows you to track complex financial metrics that automatically update as your financial situation evolves, making it ideal for serious financial planning and monitoring.

What Makes Finuncle Goals Different

Unlike traditional goal-setting tools that focus on static target amounts, Finuncle provides access to comprehensive financial fundamentals that you can combine into custom formulas. Each goal becomes a live metric that recalculates based on your actual financial data, giving you real-time insights into your financial health.

Available Fundamentals

Finuncle provides access to a comprehensive set of financial fundamentals that you can use in your goal formulas:

Asset Fundamentals

  • TotalAsset - Your complete asset portfolio value
  • TotalCash - Total cash holdings across all accounts
  • TotalBankAccounts - Sum of all bank account balances
  • TotalGold - Value of gold investments/holdings
  • TotalSilver - Value of silver investments/holdings
  • TotalPlatinum - Value of platinum investments/holdings
  • AbsInvestment - Absolute investment value

Performance Metrics

  • AbsRoA - Absolute Return on Assets
  • ReturnOnAssets - Return on Assets percentage

Liability Fundamentals

  • TotalLiability - Sum of all liabilities
  • AbsLiabilityInterest - Absolute interest on liabilities
  • LiabilityInterest - Interest rate on liabilities

Non-Performing Assets

  • TotalNpa - Total Non-Performing Assets
  • NpaPct - Non-Performing Assets as percentage

Other Fundamentals

  • TotalLent - Total amount lent to others
  • TotalExpense - Total expenses tracked

Creating Powerful Goal Formulas

Using these fundamentals, you can create sophisticated goals that truly reflect your financial objectives. Here are some examples:

Net Worth Tracking

Make Quantitative goals to track live. Take sound financial decisions by observing how your goal tracks in different scenarios.

Formula: TotalAsset - TotalLiability

Track your real net worth in real-time, automatically updating as assets and liabilities change.

Liquidity Ratio

Formula: (TotalCash + TotalBankAccounts) / TotalExpense

Monitor how many months of expenses you can cover with liquid assets.

Debt-to-Asset Ratio

https: 
Formula: TotalLiability / TotalAsset * 100

Keep track of your leverage and ensure it stays within healthy bounds.

Investment Performance Score

Formula: (ReturnOnAssets * AbsInvestment) /finuncle.com/goals/new TotalAsset

Create a weighted performance metric for your investment portfolio.

Precious Metals Allocation

Formula: (TotalGold + TotalSilver + TotalPlatinum) / TotalAsset * 100

Track what percentage of your portfolio is allocated to precious metals.

Liability Cost Impact

Formula: AbsLiabilityInterest / (TotalAsset - TotalLiability)

Measure how much your debt costs relative to your net worth.

Bad Debt Warning Indicator

Formula: (TotalNpa + TotalLent) / TotalAsset * 100

Monitor exposure to non-performing assets and loans given to others.

Emergency Fund Adequacy

Formula: (TotalCash + TotalBankAccounts) / (TotalExpense * 6)

Track progress toward a 6-month emergency fund (adjust multiplier as needed).

Step-by-Step Guide

Step 1: Identify Your Metric

Determine what financial aspect you want to track. Consider ratios, percentages, or composite scores rather than simple amounts.

Step 2: Select Your Fundamentals

Choose from the available fundamentals that relate to your goal. You can combine multiple fundamentals using mathematical operators.

Step 3: Build Your Formula

Create your formula using:

  • Basic arithmetic operators (+, -, *, /)
  • Parentheses for order of operations
  • Percentage calculations
  • Conditional logic (if supported)

Step 4: Set Target Values

Define:

  • Current baseline (calculated automatically)
  • Target value or range
  • Intermediate milestones
  • Timeframe for achievement

Step 5: Configure Monitoring

Set up:

  • Alert thresholds for when metrics go off-track
  • Update frequency preferences
  • Visualization type (graph, gauge, percentage, etc.)

Advanced Use Cases

Financial Independence Number

Formula: (TotalAsset * ReturnOnAssets) / (TotalExpense * 12)

Calculate how close you are to covering annual expenses with investment returns.

Asset Quality Score

Formula: ((TotalAsset - TotalNpa) / TotalAsset) * 100

Monitor the quality of your asset base by excluding non-performing assets.

Debt Service Coverage

Formula: (TotalCash + TotalBankAccounts) / AbsLiabilityInterest

Track ability to service debt from liquid assets.

Investment Diversification Index

Formula: AbsInvestment / (TotalAsset - TotalCash - TotalBankAccounts)

Measure how much of your non-liquid assets are actively invested.

Scenario Analysis

Use your formula-based goals to test different scenarios:

What-If Analysis Examples

  • "What if I pay off 50% of my liabilities?"
  • "How would doubling my gold allocation affect my portfolio?"
  • "What ROA would I need to achieve financial independence in 5 years?"

Decision Support

Before making financial decisions, modify the fundamental values temporarily to see how your goals would be affected:

  • Taking on a mortgage (increase TotalLiability)
  • Selling investments (decrease AbsInvestment, increase TotalCash)
  • Paying off debt (decrease TotalLiability and AbsLiabilityInterest)

Best Practices

Keep Formulas Meaningful

Ensure each formula represents a metric that actually influences your financial decisions. Avoid creating goals just because you can.

Regular Calibration

Review your formulas quarterly to ensure they still align with your financial priorities and life circumstances.

Document Your Logic

Add clear descriptions to each goal explaining:

  • What the formula measures
  • Why this metric matters to you
  • What actions you'll take based on the results

Balance Multiple Perspectives

Create a portfolio of goals that cover:

  • Liquidity (using TotalCash, TotalBankAccounts)
  • Growth (using ReturnOnAssets, AbsRoA)
  • Risk (using TotalNpa, NpaPct, TotalLiability)
  • Wealth (using TotalAsset minus TotalLiability)

Start with Core Metrics

Begin with essential ratios like:

  1. Net Worth: TotalAsset - TotalLiability
  2. Liquidity Ratio: TotalCash / TotalExpense
  3. Debt Ratio: TotalLiability / TotalAsset

Then add more sophisticated metrics as you become comfortable.

Common Formulas Library

Safety Metrics

  • Debt-to-Asset: TotalLiability / TotalAsset * 100
  • Quick Ratio: (TotalCash + TotalBankAccounts) / TotalLiability
  • NPA Warning: NpaPct (direct fundamental)

Growth Metrics

  • Net Worth Growth: Track TotalAsset - TotalLiability over time
  • ROA Performance: ReturnOnAssets (direct fundamental)
  • Investment Intensity: AbsInvestment / TotalAsset * 100

Efficiency Metrics

  • Asset Utilization: (TotalAsset - TotalCash - TotalBankAccounts) / TotalAsset * 100
  • Expense Coverage: TotalAsset / TotalExpense
  • Liability Burden: AbsLiabilityInterest / TotalExpense

Troubleshooting

Zero or Null Values

Some fundamentals may be zero if you haven't entered data for those categories. Ensure your formulas handle division by zero gracefully.

Unexpected Results

  • Verify all account connections are active
  • Check that transactions are properly categorized
  • Ensure asset valuations are up-to-date

Formula Validation

Test your formula with current values to ensure it calculates correctly before setting targets.

Next Steps

Ready to create your first quantitative goal? Navigate to the Goals section in your Finuncle dashboard and start building custom KPIs using these fundamentals. Remember, the power of Finuncle's goal system lies in creating formulas that provide actionable insights into your financial health.


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