Financial planning on “Easy Mode”
Chris Broome – Chartered Financial Planner
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.
Enemies become weaker, resources are more abundant, and the consequences of making mistakes are less severe. This allows players to enjoy the game at a pace that suits their skill level without feeling overwhelmed or frustrated.
Like gaming, many people find the world of finance and investing intimidating and complex.
In the following sections, we’ll explore how applying “Easy mode” strategies to financial planning can help you manage your finances more effectively and achieve your goals.
The Challenges Financial Planning on Default Mode
Financial planning can be daunting and complex. Many investors are 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, and a lack of a clear, long-term financial plan.
Operating in this mode can take a significant emotional toll. The constant stress and anxiety of making the right financial choices can leave individuals feeling paralysed and unsure of how to proceed. The lack of a clear plan can also increase the risk of 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. We firmly believe that the best way to increase the probability of success is to embrace simplicity, not complexity. While this can be difficult for wealthy investors to accept, we’ve 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. Like in gaming, “Easy mode” in financial planning makes enemies weaker, resources more abundant, and the consequences of mistakes less severe.
One of our biggest enemies in the financial planning journey is the constant media noise surrounding us. Regularly consuming news about short-term market movements and recent world events does not set us up for making smart 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 decisions during times of heightened uncertainty, such as short-term world events. 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 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.
We encourage you to remember that the power to transform your financial life lies within your hands. Embrace the simplicity and clarity of the “Easy mode” approach and take confident strides towards a brighter financial future.
We exist to guide families on this path, and we invite you to connect with us if you need help with financial planning in “Easy mode.”
