With Christmas around the corner, you might think that Santa’s only just starting to think about his plans for how to ensure the holiday season runs smoothly.
But the “reality” is that he’s been planning all year, and he’s not been working alone. Santa knows that a solid plan is built around key principles, such as a long-term focus, regular reviews, and the right support team.
Indeed, these principles are applicable to many parts of life.
Read on to discover what Santa’s Christmas routine can teach you about financial planning.
Santa has a long-term plan in preparation for the main event
While delivering presents on Christmas Eve is the main event, Santa spends the entire year preparing for it.
Behind the scenes, he’s mapping out delivery routes, monitoring toy production, and coordinating with the elves to make sure everything is ready on time. None of this happens by chance, it’s all the result of long-term planning.
In the same way, your financial stability relies on a long-term plan.
Setting clear goals for your life gives you a direction to aim for, whether that’s saving for a comfortable retirement or ensuring you have a legacy to leave your family.
Once you’ve set those goals, you can create a plan for how you will achieve them. Having a clear roadmap and defined targets means you can review your progress, make informed decisions about how to get back on course if you’re behind, and avoid last-minute stress.
A long-term plan ensures that when the big moments arrive, whether it’s on Christmas Eve or your retirement date, you’re well prepared.
Children’s behaviour is checked twice annually
Santa makes a list of all the children in the world and puts them into two categories: “naughty” and “nice”.
Twice a year, he reviews children’s behaviour and updates his lists if anyone needs to be moved from naughty to nice, or vice versa. These assessments mean he can adjust his plans accordingly before the big night.
Your financial plan can benefit from the same regular attention. Life can change in the blink of an eye, and a plan left unchecked can slowly drift off course.
You might change jobs, welcome a new family member, inherit a substantial estate, or experience events outside of your control, such as tax rises or high inflation, all of which can change your financial standing.
By scheduling regular reviews, you can ensure that your financial plan continues to support your goals and life as they are now. Routine check-ins mean you can catch potential issues before they snowball and help make sure you’re headed in the right direction.
The reindeer have a diverse set of skills
Santa’s reindeer are an exemplar of diversification. They may all pull the same sleigh, but each contributes something unique.
Dasher brings speed for the long-haul journeys to distant corners of the world. Prancer’s agility helps Santa land on tricky rooftops. Vixen and Comet provide strength. And of course, Rudolph’s nose offers visibility in the dark winter nights.
Santa isn’t led by one standout performer; he has a well-balanced team that can handle any challenges that come their way.
Your investment portfolio should work the same way. Putting all your money into a single asset, region, or sector is like asking one of the reindeer to pull the sleigh alone. This is fine when the conditions are perfect, but risky the moment things get challenging.
By spreading your investments across a wide range of markets, you can build a portfolio that’s more resilient and better positioned to weather storms.
So, whether you’re investing for the future or riding a sleigh through the sky, diversification can help ensure that when one part of your team struggles, others can help keep you on track.
Santa works with the best helpers
Santa may be the face of Christmas, but he doesn’t do it alone. We’ve already covered the reindeer, and behind the scenes there’s an even bigger team of helpers making sure Christmas runs smoothly.
There are the elves who build toys for all the children, and there’s Mrs Claus, who has all manner of duties, including stepping in for Santa if he’s sick on Christmas Eve.
Santa understands that for Christmas to be a success, he needs a team of specialists handling the tasks they’re best at.
The same is true when it comes to your finances. Working with a financial planner gives you access to expertise and guidance that can help ensure you stay on track.
A planner can help you clarify your goals, build a strategy tailored to your circumstances, and adjust your plan as life changes.
Just as Santa trusts his helpers to make Christmas happen, a financial planner can help ensure you have the right support to achieve your long-term goals.
To speak to a financial planner, get in touch.
Email at info@blueskyifas.co.uk or call us on 01189 876655.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.