Precision in Modeling: Sam Sivarajan’s Wisdom on Balancing Art, Science, and Decision-Making

In this episode, Paul Barnhurst is joined by Sam Sivarajan , who is a Speaker, Wealth Management Consultant, Behavioral Scientist, Stoicism Padawan, Fintech Advisor, Podcast Host, Bestselling Author and an Adventurer. He has a law degree, an MBA, a PhD in behavioral science, and has also earned a CFP.

Sam’s work is focused on how we can make  better decisions  so that we can get to  better results  – in investing, in leadership, and in our personal lives.

Listen to this episode as Sam shares:

• His journey working in Telecom during the tech boom.
• Advice on balancing the art and science of Modeling.
• His advice on making smart assumptions.
• The importance of Decision Making.
• How to think critically when building a model and making assumptions.
• Everything about his books ‘Making your money work’, ‘Uphill’ and ‘Am I Ok?’
• His position on controversial modeling issues, including circular references, dynamic arrays, modeling standards, AI in modeling, and more .

Quotes:  

“ Never forget and lose sight of why you're creating the model, and who will use it....... ”

“ In my view, the model is simply a numerical representation of some prior deep-rooted strategic thinking , a nd you're bringing that to bear in that model as a representation . ”

“ A model is a simplification of reality. It isn't reality. And to remember that the model is but one tool in making key decisions. It shouldn't be the be all and end all...... ”
 

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Follow Sam:    

Website - https://www.samsivarajan.com/

LinkedIn - https://ca.linkedin.com/in/samsivarajan

Podcast - https://www.samsivarajan.com/podcast

Twitter - https://twitter.com/SamSivarajan

Sam’s books:

Making your Money Work - https://www.amazon.co.uk/Making-Your-Money-Work-Financial-ebook/dp/B0B36PDQLX?ref_=ast_author_dp&dib=eyJ2IjoiMSJ9.fVxD2IJYvz1m0ZgBXJmkb595Ei0TtF8Wjx2TMOwZWzVdTmpjGxlD9-zbKVPzvrFn.gUxmNYfh-t6jXwKbr2EqugQZ4LBWXPOLoX6DrlNEsU0&dib_tag=AUTHOR

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In today’s episode:  

(00:22) Intro;

(00:45) Welcoming Sam;

(01:01) The worst financial model Sam has ever seen ;

(02:57) Sam’ s background;

(04:22) Sam’s experience at Telecom;

(10:27) How to balance the art of Art and Science of Modeling ;

(12:27) Why is the process often more important than the actual Model? ;

(17:07) Advice on Assumptions;

(21:51) Sam’s technique to get better at Modeling;

(22:30 - 23:15) Validate your Financial Modeling Skills with FMI’s Accreditation Program (ad);

(23:21) How people think about making decisions;

(24:35) How to make better decisions;

(27:40) Frameworks that help with Decision Making;

(31:57) Sam’s experience while writing his books - Making your Money Work, Uphill and Am I Ok?;

(34:20) Rapid Fire;

(37:38) Connect with Sam;

(38:17) Sam’s advice on being a successful Modeler;

(39:34) Paul’s Top Picks

- The importance of the Thinking Process

- Validating Assumptions

(41:00) Outro