Financial planning on “easy mode”
In video games, “easy mode” is a popular setting that makes the gaming experience more accessible and less challenging for players.
When you play in this mode, the game automatically adjusts various elements to make your journey smoother and more manageable. For example:
- Enemies become weaker
- Resources are more abundant
- The consequences of making mistakes are less severe.
This allows you to enjoy the game at a pace that suits your skill level without feeling overwhelmed or frustrated.
Like gaming, many people find the world of finance and investing intimidating and complex.
In this article, read about how applying “easy mode” strategies to financial planning can help you manage your finances more effectively and achieve your goals.
The challenges of financial planning on “default mode”
Financial planning can be daunting and complex. You may well be overwhelmed by the sheer amount of financial information, investment options, and ever-changing market conditions. This complexity often leads to pitfalls and obstacles, such as:
- Short-term thinking
- Emotional decision-making
- A lack of a clear, long-term financial plan.
Managing your financial future on “default mode” can take a significant emotional toll. The constant stress and anxiety of making the right choices can easily leave you feeling paralysed and unsure of how to proceed. Furthermore, the lack of a clear plan can also increase the chances of you suffering financial setbacks and losses, further compounding the emotional stress of investing.
Recognising the limitations of the default mode approach is the first step towards finding a better way to manage your finances.
I firmly believe that the best way to increase the probability of success is to embrace simplicity, not complexity. While I appreciate this can be difficult for many investors to accept, I’ve often seen the benefits first-hand.
Switching to easy mode
Transitioning from financial planning’s default mode to easy mode can bring a sense of relief and empowerment to your financial journey.
One of the biggest enemies in the financial planning journey is the constant media noise surrounding you. Regularly consuming news about short-term market movements and recent world events does not set you up for making sensible long-term decisions.
Smart investors know that success is more likely if they remain focused on the long term, which is easier when they are mindful of what information they consume.
Financial planning is the quest to accumulate enough resources for a dignified and independent retirement.
Smart investors understand what asset classes give them the best chance of growing their resources and fighting inflation. They know that by diversifying within the right asset classes, they can put the odds of success in their favour.
Lastly, many investors undo the effects of their previous good decisions by making emotional ones during times of heightened uncertainty, such as newsworthy world events that affect markets in the short term.
Smart investors understand market history and investment cycles, allowing them to stay focused on the long term when others react emotionally. This is another hallmark of those playing on easy mode.
Help is on the way
Embracing easy mode means focusing on long-term, goal-oriented strategies that align with your values. It involves prioritising the essential concepts and actions for your success.
Collaborating with a caring financial adviser can be instrumental on this journey, but the principles of simplicity, clarity, and emotional resilience remain invaluable even if you navigate the journey independently.
I would encourage you to remember that the power to transform your financial life lies in your hands. Embrace the simplicity and clarity of the easy mode approach, and you will be able to take confident strides towards a brighter financial future.
My role is to guide you on this path, and I invite you to connect with me if you need help with financial planning in easy mode.
Get in touch
If you would like to talk about your financial planning arrangements, please get in touch.
You can call me on 07769 156 250.
Please note
This blog is for general information only and does not constitute advice. 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. Past performance is not a reliable indicator of future performance.
Accessing pension benefits early may impact on levels of retirement income and your entitlement to certain means tested benefits.
Accessing pension benefits is not suitable for everyone. You should seek advice to understand your options at retirement.
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.
