Understanding where your wealth is coming from and how you’re using it could help you make more informed decisions. However, as so many assets are intangible, having a clear picture of your wealth can be difficult. Finding ways to visualise all your assets is often useful, and something people have been doing for centuries.
When you hear the term “Exchequer”, you might think of the government’s economic and finance ministry or the position of chancellor of the Exchequer, which in 2025 is held by Rachel Reeves. However, the term is much older than the position.
The government explains that it is derived from a chequered cloth that was used by accountants in the 11th century to aid auditing by providing a way to visually record where money was being spent and received at a national level. These Exchequer meetings were said to be confrontational, with powerful Barons often interrogating the accountants about the state of their affairs.
Indeed, in the first Exchequer Budget recorded in 1284, the method highlighted that the Crown was spending far more than it was bringing in, which led to the introduction of taxation.
The Exchequer’s function as a financial department of state formally ended in 1833, but the value of visualising wealth remains, including when managing your personal finances.
Today, understanding your wealth can be even more difficult as so many transactions and assets are digital. According to a December 2024 report from the BBC, only a fifth of transactions in 2023 involved physical money.
Why visualising your wealth could support your long-term plans
Being able to see a visual representation of your wealth could help you better understand your assets, get to grips with your budget, and support your long-term goals. In addition, it can be reassuring to see all your assets, including those that are intangible.
The good news is you don’t need to unroll an Exchequer cloth and gather counters when you want to visualise your wealth. Today, cashflow modelling could help you assess your financial position now and in the future. Read on to find out how cashflow modelling works.
4 steps to creating a cashflow model that helps you achieve your long-term goals
1. Set out your goals and priorities
A cashflow model is used as part of your wider financial plan. You can begin creating one by talking with your financial planner about what you want to achieve in the short and long term, whether that’s travelling the world more in the next five years or being able to retire at age 60.
2. Gather your financial information
To calculate if you’re on track for the future, you need to understand your current financial position.
So, you’ll need to gather information that can be added to your cashflow model. This might include how much you’ve saved in your pension, the value of your home, or the amount in your emergency fund.
Your financial planner will then make realistic assumptions about factors that could affect your wealth, such as investment returns or the rate of inflation.
3. Project how your wealth might change
You can then see how your wealth will change over the long term. One of the reasons cashflow modelling is powerful is that it allows you to see multiple possibilities to explore your options and stress test your financial plan.
So, you might see if increasing your pension contributions by 1% now could mean you’re able to retire earlier. Or if you could gift assets to loved ones and still have enough to reach your other long-term goals.
You might also want to model scenarios that you’re worried about, so you’re able to take steps to protect yourself should they happen. For instance, you might want to see how taking an extended period off work due to ill health could affect your long-term security. Understanding the potential effect might highlight how you’d benefit from increasing your emergency fund or taking out appropriate financial protection.
4. Regular reviews are important for reflecting changes
Life doesn’t always turn out how you expect. Sometimes unexpected events or simply changing your mind might mean your goals and financial circumstances are different. So, to get the most out of your cashflow model, it’s important to update it regularly.
As well as personal changes, other factors outside of your control could also affect your wealth and the decisions you make. For example, a period of high inflation might mean you need to take a greater income in retirement, or market volatility could mean investment returns are lower than expected. Working with your financial planner to incorporate these events into your cashflow model could help you understand what they mean for you.
Get in touch to understand your wealth
If you’d like to understand your assets and how they might change in the future, please get in touch. We could work with you to create a cashflow model and use the information to build a long-term financial plan that focuses on your aspirations.
Please note:
This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.
The value of your investments (and any income from them) can go down as well as up, and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
Note that financial protection plans typically have no cash in value at any time, and cover will cease at the end of the term. If premiums stop, then cover will lapse.
Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.
The Financial Conduct Authority does not regulate cashflow modelling.