Let’s be honest – many, if not most of us, are pretty uncomfortable, even reticent, to think about the future. It’s not that we are lazy or disinterested, but mental gymnastics with figures, especially if it involves spreadsheets, is not something that floats our boats. Okay, maybe that’s just me but I suspect there are other Excel Luddites out there.
When it comes to money, a reactive, survivalist response to current events makes real progress difficult. It shifts into a stop start, buy sell approach that ultimately can prove both expensive and unrewarding. The only thing that goes up is your blood pressure, and your pharmacy visits. Despite our best efforts, we end up focused on what’s happening right now, with little thought for what lies in store further down the road.
Right now, especially when you are under pressure, the last thing you want is to work out how bad things are. It’s no wonder we’d rather spend time with friends, or on a weekend golfing trip away somewhere warm and relaxing. They both seem so much more attractive than sitting down with, dare I say it, a spreadsheet, and working out where all the money goes and how much you’ll need to retire.
The present is full of noise and urgency. The future, on the other hand, beckons, whispers — or sometimes doesn’t speak at all. But it is still there waiting. It can be a difficult choice saving for retirement in your 30’s. Paying the mortgage and budgeting for energy and food bills is more than enough to be going on with. It’s hard to picture yourself as a thankful 65-year-old reflecting on the benefits of that 35-year-old putting an extra few pounds a month into your pension or ISA account. It’s much easier to imagine that same 35-year-old holding a cold drink on a beach somewhere. After all if you had the choice, which one wins?
The problem is we love immediate feedback: that dopamine hit from a great review, family event or a special gift. Financial planning, though, is basically the opposite. You put money away, don’t touch it, and nothing happens — or so it seems. Then one day, possibly years later, you realise that that small insignificant financial snowball gathered pace and has grown. That’s when you look in the mirror and think, “Genius move – that pension and ISA”. It is proof that you knew what you were doing all along. That at some point you found a vantage point that let you see beyond the wood, and there were those trees you’d been looking for all along.
But here’s the twist: you don’t need to see the whole future to make good decisions. You just need to find someone you can trust to help you understand that planning for your future is important. It can be interesting, even fun – trust me I work for Stewardship Wealth and we do all the spreadsheets!
So, how can we make this come to life? Picture what you want your life to look like 10, 20, 30 years from now — not just the number in your bank account, but the feeling. Freedom. Security. The ability to say “yes” to things you care about.
Financial planning isn’t about predicting the future, it’s about planning for it. It’s about building enough flexibility to manage whatever the future throws at you. It’s not a wish list — it’s a roadmap you can adjust along the way.
The irony is that to get better at money, you don’t need to become a spreadsheet wizard. You just need to become a little bit of a dreamer — someone who can see beyond next Friday and imagine what “later” could actually look like.
Because in the end, financial planning isn’t about numbers; it’s about seeing the future through a different lens, a polyfocal lens if you will. One that lets you see the future and the present in focus. A lens that allows you to deal with the legitimate needs of the now, and the not yet.