The wisdom of a Financial Plan

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Rely on your Plan to help you understand what really matters and what you can do about it.

Three well known pieces of wisdom that are particularly applicable to financial planning are:

  • What is known as the “serenity prayer”: “grant me the serenity to accept the things I cannot change, courage to change the things I can and wisdom to know the difference”.
  • The boxer Mike Tyson who taught us that “everybody has a plan until they get punched in the face.”
  • One of Warren Buffet’s library of common-sense investment quotes: “it’s only when the tide goes out that you learn who has been swimming naked.”

As we continue to face uncertain times and navigate choppy financial waters, these wise words can be used to summarise the times in which we live and what we might be able to do about them.

A less well-known adage says that: “if things aren’t going to plan, then it is usually because there never was a plan.”

A Financial Life Plan is important in difficult times

A Financial Life Plan is especially important during difficult times because it is something that you have created and therefore something over which you have a significant level of control. There is no shortage of bad news arriving from all directions but what does it actually mean for you? Are you still on track to achieve your Plan? Because when it comes to your money, that is what really matters.

A Plan allows you to put the news into context and helps you to concentrate on the things you can control rather than fretting about the things that you can’t.

Does this event or piece of news significantly affect my Plan and, if so, what can I do about it? Without a plan to quantify what the latest events actually means for your money, the media will delight in framing everything as a threat to your wealth and your future. A long-term plan allows you to look at the choices you can make and still achieve your goals.

If you don’t yet have a plan then the great news is that if you don’t know where you are going, any road will take you there! If you are not convinced by that piece of questionable wisdom then we are always here to help and that usually starts with a Plan.

Working with our clients to create great Financial Life Plans and keep them updated and relevant when the world inevitably changes is what we do every day. Mike Tyson would surely approve.

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Please get in touch if you would like to discuss your Financial Life Plan. We are always here to help.

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