Positive Planning: Rear view

When it comes to balancing enjoyment and stress around money (and other things), there’s a real benefit to occasionally looking back at where we’ve come from rather than just always looking forwards.

Realise that you’re not still in the starting blocks: have a good look at how far you’ve come and achieved already.

This can actually help you get closer to the objective in front of you as this reflection can boost your confidence when you realise all that you’ve achieved to date.

About ten years ago I cycled a stage of the Tour de France. Not the professional athlete race, but an amateur event they run a week beforehand where, for one or two days, they close the roads and let amateur competitors experience part of the route of the tour in all its glory: no cars, just many, many miles and mountains in one day on a bicycle.

In fact, there was a choice of two different days encompassing two different routes. Unfortunately for me my ego signed me up for the longest and hardest day of that year’s tour: 197km (120 miles) over 5 Mountain peaks (including the Col du Tourmalet) in one day.

It was a hard day and to make matters worse it didn’t just rain, it hailed. But I pedalled on and had enough in the tank to get through. But sadly, it’s a timed event and I wasn’t as fast as I’d needed to be and so I (and over 100 other racers) got pulled out of the race about three quarters of the way through because I hadn’t met the required split times, and they were now reopening the roads.

I’ve always viewed this as a failure because I didn’t finish the race. I continued pedalling a bit further and crested and descended the Col du Tourmalet even after they’d removed my race number and the cars had returned to the roads. But I didn’t cross the finish line and I didn’t get a medal.

But after ten of years of reflection and time back in the saddle, I realise now that actually it was a significant achievement: That day I cycled my furthest ever distance and highest elevation in a single day, and I have yet to surpass it, it’s still the biggest day’s cycling I’ve ever done.

In most metrics it was a real achievement.

Maybe next year I’ll go back and see if I can do the whole thing and get the medal. But frankly, as I’m not a professional athlete, the only person who cares about the medal is my ego.

Looking back without the ego I can see I actually achieved a lot.

The same’s true with money. Planning is important and we’re often driven forwards by the goals and objectives we’ve put up ahead of ourselves. But life doesn’t always go to plan and sometimes we have to course correct, sometimes we have to continue cycling now with cars on the road, and sometimes we need to change vehicle or come back another day. But the most important thing is maintaining energy and enthusiasm to be moving forward (and enjoying the process as we go)

So, as well as measuring backwards from your goals, give yourself some acknowledgement and a confidence boost by measuring forward from your successes, acknowledging all you’ve achieved to date.

Practical Takeaways

To put this perspective into practice, here are some practical steps you can take in your financial planning:

• Review Your Financial Milestones: Regularly look back at your financial achievements, such as savings goals met, debts paid off, or investments made. Celebrate these milestones to boost your confidence.
• Set Realistic Goals: While it's important to have ambitious goals, ensure they are achievable and reflect your current financial situation. Adjust them as needed based on your progress and any changes in your circumstances.
• Create a Financial Plan: Develop a comprehensive financial plan that includes short-term, medium-term, and long-term goals. Break these down into manageable steps and track your progress regularly.
• Seek Professional Advice: to build and implement this plan, receive personalised advice and strategies tailored to your unique financial situation and objectives, and help keep you on track.
• Maintain Flexibility: Adjust and adapt: Life doesn’t always go as planned. Be prepared to adapt your financial plan as needed. Flexibility is key to navigating unexpected changes while staying on track with your goals.
• Balance Planning and Reflection: While forward planning is essential, also acknowledge and celebrate your financial successes. This balanced approach with positive reinforcement can help maintain your enthusiasm and keep your financial journey enjoyable.

By incorporating these steps into your financial planning, you can create a more balanced and fulfilling financial journey, celebrating past achievements while staying motivated for future goals.

The value of an investment with St. James's Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.