Dancing on a flying carpet

I heard this description recently and it has stayed with me - I immediately pictured Aladdin and Princess Jasmine. The flying carpet is moving, changing direction, perhaps dropping a little unexpectedly, and somehow you’re supposed to be enjoying yourself on top of it.

It struck me as a pretty good description of life. Although, depending on the day, wrestling might be more accurate than dancing.

There’s always something we’d like to have settled before we can properly relax. A decision we need to make, or maybe some news we’re waiting for. Once that’s sorted, we tell ourselves, we’ll finally be able to get on with enjoying ourselves. Except, by the time that happens, something else usually comes along.

I’ve been thinking about how we live with that uncertainty, especially when it involves our money. We know we can’t predict the future, but it would still be reassuring to know that everything is going to be all right.

Easier said than done

When you invest, you know there will be ups and downs. We talk about them before you start, and we allow for them when we build your financial plan. But knowing that your investments can fall in value doesn’t mean you’ll shrug it off when they do. This might be money you’ve worked for, perhaps over several decades, or money passed on to you by family. Either way, it represents choices made in the past - the years of saving, the things put off or gone without - as well as choices about your future. Of course you care about what happens to it.

And when a worrying headline appears, it comes with details. Names, numbers, expert opinions and convincing explanations of what might happen next. Suddenly, the years that went into building your money, and the plans you have for it, can feel rather distant beside something demanding your attention today.

Of course, there’s always that temptation to read another article or check your account again, hoping for some good news to put your mind at rest. But it can have the opposite effect.

Actually I don’t watch much news these days. Political coverage, in particular, tends to leave me frustrated, and I’ve realised I can choose how much of it I let into my day. I remember seeing a conversation on Gogglebox where someone questioned why their partner kept watching people on television who wound them up. Why keep inviting them into your living room?

I thought that was a fair point. We all need to stay informed, but that doesn’t mean keeping up with every update until bedtime. If the news is leaving you more anxious, give yourself a break. It’ll still be there when you come back.

Remember what you’ve already done

When I’m uncertain about something, I try to stop and look at where I am and how I got here. I still get nervous before some conversations. I can find myself wondering whether this will be the meeting where someone asks something I can’t answer.

Then I remind myself that I’ve had that feeling before. I’ve dealt with difficult questions before, too. And if I don’t know the answer, I can be honest about it: “I’ll need to check that and come back to you.” That helps me put the worry in perspective.

Running has helped me with this as well. I’m fairly convinced that, without running the London Marathon, I wouldn’t have set up my own business. Sticking with the training, doing something difficult and discovering that I could get through it gave me confidence to make another change.

You’ll have your own experiences to draw on. Things you weren’t sure you could manage, decisions you found difficult, changes you had to adapt to. Looking back, you might give yourself a bit more credit for how you handled them. Those same qualities are still there when the next worry comes along.

With money, we can also do some practical preparation

We can look at what you need your money to do, when you’re likely to need it and how much investment risk you can afford to take and feel comfortable with. Spreading your investments across different companies and markets can help reduce your reliance on any one area, although it won’t eliminate the risk of losses. We can test different assumptions, too. What if returns are lower than we’d hoped? What if your spending changes? What if you live longer than expected?

Those conversations help us understand where a plan has flexibility and where we might need to make adjustments. They also give us something useful to return to when you’re worried. Has something changed in your life? Do you need your money sooner? Or has a headline made a risk we’ve already discussed feel much closer? Each is worth discussing, as they may call for different decisions.

A financial plan can’t predict what markets will do or everything life might bring. But it can help you prepare for uncertainty, make informed decisions and understand when your plans might need adjusting.

And you don’t have to navigate those decisions alone.

Can we enjoy the ride?

I don’t expect anyone to become entirely relaxed about uncertainty. I certainly haven’t managed it. But I’d hate to think we were all putting off enjoying life until we felt certain about everything - we could be waiting a very long time.

Some days, dancing on that carpet might feel like too much. On those days, finding your balance and staying on your feet may be enough.

If something is worrying you about your money or your plans, please give me a call. We can take a look together.