How do you explain Human Behaviour

Why is it with some people when on the cusp of achievement they sabotage the ultimate goal by some act of completely unexplainable behaviour.  It happens in sport, business, entertainment and especially when it comes to financial security.

The mental toughness of an elite athlete is what differentiates them from the average.  Few of us are elite – let alone athletes.

The strength of purpose and commitment to values and core principles is what separates a business with soul from one with a focus solely to profit – most businesses I encounter struggle to elaborate on vision, mission and purpose.

The couple with a primary aim and the synergy from shared goals is much more likely to achieve financial security than those that seldom communicate mutual expectations or measure debt and equity regularly – not many couples have written shared goals (I have less than 100 after 40 years of planning).

The frustration is heightened when the talented and the personable don’t seem to learn from previous experiences.  They repeat behaviours which are known to cause heartbreak at best, financial ruin or self destruction.

There doesn’t seem to be a simple answer.  When it’s our own we hope that time will cure all, but history is littered with examples of fallen stars or wasted talent.

I think support structures are critical.  We need mentors, coaches and managers.  No elite athlete goes solo whether in a team or an individual sport.  The best businesses have strong external governance.  Entertainers that lose their way have usually departed from a management structure which ‘curbed’ their freedom.

Making a goal to seeking financial security is important for one’s life and lifestyle but managing the process is critical because we seldom have the mental toughness of an elite athlete or the governance of an external board.  Many of the experiences in life are ‘firsts’ for us.  We are not aware of the long term consequences which accompany daily decisions or daily omissions until experience and heartache appear before us.

Choosing a life partner and making a life together is not something we are trained to do.  Whilst we can ponder a strange (to us) occurrence such as an arranged marriage, perhaps mother and father do know what’s best for us.  Western society success ratio of maintained marriage is hardly exemplary.  Then we have a family, buy a house, furnish the place, educate the kids, save for retirement, go for holidays, watch our grandparents and parents age and depart, change employment, borrow and leverage, vote for politicians and political parties.  Dependent for 20 years, earning for 40 years and retired for 30 years – hoping to make fewer mistakes through each lifestage than the generation before.  And the cycle repeats itself unless there is a catalyst for change.  About the time we become grandparents we know what we did right and what we did wrong.

Of course I’m advocating the necessity to intervene.  There was a time in our society that the church, the tribe or the family did the mentoring.  This is no longer the case, not because there is no church or tribe or family, but because there is such a rapidly changing environment driven by digital communication and technology.

The role of a financial and lifestage planner I believe, is the noblest work one can do in this world – advising people how they can secure their financial futures.  It isn’t a job or even a career.  It’s a calling.  And sound financial advice is desperately needed by the people around us.  Most of the day to day financial pressure people feel – as well as nearly all the peer pressure – is to consume rather than to save: to meet today’s immediate needs and wants rather than to provide for tomorrow’s.  The process of planning one’s life seems eminently sensible to me – but it would.  I’ve made all the mistakes.

The information provided in this blog is not intended to be a substitute for professional advice. You may seek appropriate personalised financial advice from a qualified professional to suit your individual circumstances.