How do we ensure we achieve our financial ambitions in life 

30th July 2021

Well for sure, there are no guarantees involved with this question and when it comes to financial planning and investing for our futures, us humans do not fit into any kind of mathematical modelling tool, especially when it comes to managing our emotions around money.

As financial planners, we do use modelling algorithms, as this helps us guide our clients in what they need to be doing to have a successful future.  However, whilst the modelling tells us what to do and why, when it comes to people and money, things can get a little messy and sometimes complex.

The best check on identifying the consequences of our actions when it comes to money, and anything for that matter, is of course hindsight.  Also, our experiences and beliefs in life dictate how we feel about something going forward and therefore, how we are going to react.  Challenging those belief systems is complex, and for us to just provide some simple formula to tell our clients what they need to do with their money, to be successful (whatever that means to them), is not always easy for the client.

The only way to navigate the complexity of managing money and investing, is through constant corrections of the course we travel and from our experience, the best way to do this is to assess someone’s situation, make the best guess of what needs to done, and when, then put some actions in place, before repeating this through regular monitoring.

Our ‘guess’ of course, is based upon our extensive knowledge and expertise, however, this cycle of assessing, guessing, acting and repeating is driven by the volatility and changes in the individual’s life.  If their circumstances are relatively stable, we may only need to review plans every six or twelve months, or even longer, however, it is when things change or ‘blow up’ in their life, that they may need to revisit this cycle more regularly, and this is where we support their daily or monthly decisions.

The key is remaining flexible, especially as we know we do not fit into mathematical algorithms that financial modelling provides, so we don’t try to do this.  In reality, we prefer to acknowledge that real life takes over, investment markets are volatile and money matters can be untidy, so making ourselves as adaptable as possible is the ‘way to go’.

Controlling what we can control and letting go of the things we cannot, whilst remaining flexible, is the crucial part of helping us achieve the things in life we value, and allowing our money decisions to support these.

Charlene Overell

G3 Financial Freedom Ltd