As a father of two, I’ve been doing my best to instil in my children a love for reading.
Alice: “Would you tell me, please, which way I ought to go from here?”
The Cheshire Cat: “That depends a good deal on where you want to get to.”
Alice: “I don’t much care where.”
The Cheshire Cat: “Then it doesn’t much matter which way you go.”
Alice: “…so long as I get somewhere.”
The Cheshire Cat: “Oh, you’re sure to do that, if only you walk long enough.”
How can you pick a road to somewhere when you don’t know where you are going? How do you ‘get there’ when you don’t know where there is? Just like any good road trip, you can’t possibly plot a specific course if you don’t know this.
Likewise, without a proper financial plan in place, what’s to keep the average investor from making poor decisions that could end up diverting them from wherever their there is?
“No matter what the state of the markets, boom or bust: Investment results are more dependent on investor behaviour than on fund performance. Fund investors who hold on to their investments are more successful than those who try to time the market.”
Would you try to build your home without a blueprint? Would you want a surgeon to blindly start cutting without planning out the surgery? If not, then why try to build your wealth and long-term financial wellbeing without a plan?
Whatever you do, don’t be Alice and ignore your financial future in the hopes to simply get somewhere. If you walk long enough, you’ll get somewhere, but why not make a plan and get to where you really want to go!
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