Focus on What You Can Control to Improve Your Financial Well-Being
At this time of the year most of the things that the “experts” are warning you to prepare for are things beyond your control. Rather than stare into a crystal ball and make predictions, we prefer to help our clients focus on how we can help them get the best life possible with the money they have – no matter what happens in 2020.
You can’t control the global economy …
Brexit, a new Government, tariffs, the US – China trade dispute, changes to energy and agriculture policy, mergers and acquisitions, and half a dozen surprises are going to affect how the world does business in 2020. Anyone’s guesses about how these factors will – or won’t – ripple through your portfolio are just that: guesses.
… but you can control how you make money.
No one loves everything about their work. But if you’re sticking with an unrewarding job for another year because you feel like you have to, you don’t. You can control the mindset with which you approach your job and appreciate how your efforts improve life for your end customers and for your family. Or, you can explore how you could reapply your existing skillset and interests in another, more fulfilling field, or at a different job with your current employer.
You can’t control the markets …
Here’s a prediction: at some point in the next 12 months, something unexpected is going to send the markets into a frenzy. Unexpected events send the oil price spiralling higher. An earthquake on the other side of the world is going to require a big influx of aid. A US election is going to spark two very different reactions from two very different groups of investors. In the short term, the market will go through a correction that sets off a whole new wave of doomsaying.
… but you can stick to your long-term plan.
In the long run, that correction is going to register as another small dip on a line that continues to trend upwards. Market volatility is just a tax that investors have to pay on wealth-building. Sticking to our long-term plan is a much safer and more reliable strategy than trying to “time” your savings and investments based on today’s headlines.
You can’t control our politics …but you can control how you respond to the changes that happen
Whether or not you agree with certain politicians or policies, there could be many ways in which your plan might have to change as you get closer to retirement. The more prepared you are for things you CAN predict – like planning job change, booking long haul holidays, kids going to university – the better equipped you’ll be to adjust for things you can’t predict.
A good place to start is our Return on Life Assessment. In around five minutes you’ll have a snapshot of life across a number of areas and you might identify one or two to focus on, right now.