Cast your mind back to 2016 for a moment. It was a year full of surprises. In global politics, Britain voted to leave the EU and Donald Trump was elected president. In global economics, we had rising interest rates, rising trade protections and rising income inequality. In local economics, we had declining growth, subdued price inflation and rising unemployment.
Few anticipated these results and when the outcomes were known, most forecasters were wrong in predicting dire consequences for financial markets. Which is no doubt why Warren Buffett has quipped that “the only value of stock forecasters is to make fortune tellers look good”.
It’s certainly interesting to consider and debate political and economic issues. However, on a personal level it doesn’t really affect your success in achieving your financial goals.
We believe that to achieve financial success, you should spend less time focusing on the things over which you have no control and more on the decisions that have an actual impact on your overall financial well-being. You’ll also have less stress.
So, in this piece, we’re going to talk through three key areas that people often spend too much time worrying about and thinking they can control. Then we’ll discuss five key areas that you actually can control and where a steady focus should deliver long run gains.