It’s only human to seek financial stability when making long-term plans. Finally, you’ve proven that you’re just like everyone else. You want to know that you’ve made the right choice or that you can reach your objective. Of course, no one can ever promise absolute certainty. In fact, most effective planning occurs when its participants recognize that they lack certainty, come to terms with that truth, and press on with the endeavour, nonetheless. Consider saving for old age.
The average age range for this is 60–95. Life expectancy has increased because of medical breakthroughs and better living conditions; therefore, we don’t think it’s unusual that we run cash flow models for our clients all the way to age 100. So much may change in that amount of time. Just think of all the things that can happen if you’re 35 years old and trying to make long-term financial decisions.
Uncertainty from within
We’ve read a few books about people’s attitudes towards money. The way that people make choices is fundamental. We like to believe that we can make decisions after carefully considering all the benefits and drawbacks. After an internal calculation, a conclusion that is logically deducible from the available data follows. And that’s not the case.
Our upbringing and life experiences have a considerably greater impact on our decision-making. Over time, we accumulate a wealth of knowledge, and from that comes a conclusion that clicks with us. One to which we are emotionally (and biasedly) attached.
Because of this, it’s absurd to see budgeting as a method of logically progressing towards some predetermined end point. While we have established certain principles to help you get there, your actions will have just as much of an impact on how quickly (or slowly) you reach your destination.
This is doubt “within us”, in our own brains and souls.
Discord from without
But what about risks from the outside world?
The likes of:
- In 5 years, what do you predict interest rates to be?
- Do you plan to sell your business?
- Ailments, perhaps?
- Inheritance: Do you expect it?
- Is a new epidemic in our future?
These concerns rarely become obvious or evident until the very last minute. We have no idea. You have no idea. They have no idea.
A severe example of this is the question, “How much should I be saving?” when it comes to personal finance. The inability to know is a major handicap. For some of us, the inability to plan might feel like physical agony.
Everyone here is curious about what’s going to happen. With the next generation. In terms of our respective marriages. With the schools where our children are enrolled. Together with our staff. Where we do business. Because of the weather.
The ability to predict the future would allow us to better serve our clients and the economy. The only way out is to fortify our resilience. We’re ready for anything that might come our way. To achieve this goal, Expat Wealth At Work serves as your personal CFO (you serve as the CEO of your life).
As part of your “Life Strategy,” which encompasses all the major choices you’ll make in the future, we may have to tell you some unsettling facts to help you make better decisions, save money, increase your returns, and feel more in charge of your finances.
Investing methodically, adhering to sound fiduciary practises, and engaging in some form of cash flow or life planning can help you prepare for your retirement years. However, financial security isn’t the only thing you need to worry about. Strength cannot be bought with money alone.
The other aspects of our lives, such as our relationships, our education, our abilities, our inventiveness, our capacity to adjust to varied circumstances, our work ethic, our professional network, and so on, can help us respond to whatever life throws at us, but we often overlook them.
Here are some techniques to strengthen your resilience that don’t involve money:
- Emotional. Meditate. Journal. Go out into the fresh air.
- Love and romance. Go on dates on a regular basis. Seek out marriage counselling. Get together on a regular basis to discuss your requirements. Constantly remind the other person of the things you admire about them.
- Friendships. Make a phone call. The two of you should grab coffee together. Just shoot off a text. Let’s hit the trail.
- Career. Find an advisor. Continually put yourself out there in your network. Acquire abilities. Travel to meetings.
- Fitness in the body. Good nutrition is essential. Get up and about. Get some shut eye before 10 o’clock.
- Protection of the mind. Get into some reading, some interesting classes, maybe some pottery, or gardening.
All these factors are within your control, which is a plus.
Keep in mind that there are many things outside your control, such as interest rates, the weather, the actions of others, tax rates, etc.
Based on the information at hand and our best estimates of what will likely occur, we formulate for you the most optimal plan possible. We’ll need to rely on our resiliency and agility to adapt to new circumstances, to lessen potential harm.
“Risk” is “what’s left over after you think you’ve thought of everything.”
Uncertainty is unsettling and bothersome, but it cannot be avoided. How do you reconcile this truth with your desire to continue making plans for and living your life?