OPINION: Is your Financial Navigation System up to date?

Many of us use in-car GPS Satellite Navigation to go to new places.  This guidance system relies on three simple elements: it tells you exactly where you are now, you tell it where you want to get to and it shows you exactly which way to go, step by step.  Brilliant.  It even tells you exactly where you are as you go along and estimates how long it will take to get to your destination (in a calm, reassuring voice if you've selected that option).

Importantly, when obstacles get in the way - a diversion or road works for example - the system knows that your destination hasn't changed.  It simply recalculates, guiding you round the obstacles and towards your destination.  It even updates the estimated time of arrival.  It may take a little longer, you may be travelling on a road you hadn't anticipated (which might be more fun) but you still arrive at your intended destination.

The amazing thing about these systems is the amount of trust we place in them.  Of course, when we're on familiar roads in familiar territory we don't need the guidance.  However, if we're somewhere unfamiliar we have to trust the system and we know we will get to our destination, even if it feels a little weird giving up our false sense of control to a talking box.  Our destination may be many miles away but we know we'll get there if we follow each step carefully.

All of which means that we're less stressed about our destination, leaving us free to enjoy the journey.

If you're already ahead of me, you'll see that there is an obvious link to Lifestyle Financial Planning.  Successful Lifestyle Financial Planning involves working out exactly where you are now, exactly where you want to get to and receiving regular guidance to steer around the inevitable obstacles you will encounter along the way.  Where you are now means having a clear understanding of your current assets, current income and current expenditure.  Where you are trying to get to is a clear picture of your lifestyle from now onwards, identifying what you want to do with your remaining time and how much your desired lifestyle is going to cost you.  Finally, the regular guidance is a financial plan that adapts to changes as you go along and steers around the obstacles.

John Waskin is quoted as saying, "people spend more time planning a two week vacation than they do planning their financial future..."  Why is that?  Are we just too scared to face the truth about money?  Or are we just waiting to meet somebody we can trust to steer us in the right direction?

Our existing Lifestyle Financial Planning clients know where they are, they know what they want to do with their lives and what that will cost.  The financial world changes (even faster than the road network) so our clients have our support to provide regular feedback, guide them around obstacles and keep them on course towards maintaining their lifestyles.  And if they change their minds about where they want to go, we help them to reset their financial guidance system and plot a new course.

So, back to the original question.  Is your Financial Navigation System up to date?

Call me if you're not sure and we'll help you to have a more comfortable journey!

Simon Yates
simon@yatesandcoifa.co.uk
4th August 2010