Scenarios

Finuncle Help Guide: Financial Scenario based Planning - Made Simple

What is Financial Scenario Planning?

Financial scenario planning helps you make better money decisions by creating and comparing different "what if" situations. Instead of guessing what might happen, you can see the potential outcomes of your financial choices before you commit.

Think of it like this:

How Finuncle's Scenario Comparator Works

1. 📝 Create Your Scenarios

Build multiple financial situations to compare:

2. 📊 Visual Comparisons

See your scenarios side-by-side with clear charts and graphs:

Future Projections:

• Net Worth Growth: How much wealth you'll have in 5, 10, or 20 years
• Monthly Cash Flow: How much money you'll have available each month
• Total Investment Value: Growth of your investments over time

Year 10 Net Worth Comparison:
🏠 Buy House Now: ₹4.85 crores
💰 Rent & Invest: ₹5.20 crores  
⏳ Wait Then Buy: ₹4.45 crores

3. 📈 Historical Context (Retrospective Analysis)

Understand how current conditions compare to the past:

What you'll see:

• Interest Rate History: Are current mortgage rates high or low compared to the last 20 years?
• Market Performance: How have similar investment strategies performed historically?
• Housing Market Trends: Historical home price appreciation in your area

Key Features Explained

📊 Scenario Builder

• Input your real financial numbers
• Adjust assumptions (investment returns, inflation, etc.)
• Create unlimited "what if" scenarios
• Save scenarios to compare later

📈 Future Projections

• See 5, 10, 15, and 30-year projections
• Visual charts showing wealth growth over time
• Monthly cash flow comparisons
• Break-even analysis (when does buying become better than renting?)

📉 Historical Analysis

• Compare current market conditions to historical averages
• See how your scenarios would have performed in past market conditions
• Understand market cycles and timing implications

🎯 Decision Support

• Clear recommendations based on your goals
• Risk analysis for each scenario
• Sensitivity analysis (what if interest rates change?)
• Key milestones and decision points

Real-World Example: Buy vs. Rent

Getting Started

Step 1: Set Up Your Base Scenario

Enter your current financial situation:

• Income and expenses
• Savings and investments
• Current housing costs
• Financial goals and timeline

Step 2: Create Alternative Scenarios

Build 2-3 different approaches:

• Conservative approach
• Aggressive growth approach
• Balanced middle-ground approach

Step 3: Compare and Analyze

• Review the visual comparisons
• Check historical context
• Consider risk factors
• Make your decision with confidence

Step 4: Track and Adjust

• Monitor your chosen scenario's performance
• Update assumptions as life changes
• Reassess annually or when major life events occur

Tips for Better Scenario Planning

✅ Do:

❌ Avoid:

Common Questions

Q: How accurate are these projections?

A: Scenarios are educational tools based on your assumptions. They help you understand potential outcomes, but actual results will vary based on market conditions and life changes.

Q: How often should I review my scenarios?

A: Review annually or when major life events occur (job change, marriage, kids, etc.). Market conditions and your goals evolve over time.

Q: Can I share my scenarios with others?

A: Yes! Share with your financial advisor, spouse, or family members to get input on your financial planning decisions.

Q: What if I don't know what assumptions to use?

A: Finuncle provides historical averages and suggested ranges for common inputs like investment returns and inflation rates.

Need More Help?

• Video Tutorials: Step-by-step guides for common scenarios
• Example Scenarios: Pre-built templates for typical situations
• Support: Contact our team for personalized assistance
• Community: Join discussions with other Finuncle users