Category: MARKET

(This is the last blog of three about biases and how they impact our financial planning, all published this month.)

If you’ve ever walked away from a brilliant webinar or insightful podcast thinking, “Yes! I’m going to make a change,” and then done… nothing, welcome to the club!

Change is hard. Not because we’re lazy, but because our brains are wired for survival, not clarity. In this final blog of our series on cognitive bias, we look at the subtler biases that shape our sense of normal, our timeline for success, and even our self-worth. These aren’t always loud, but they’re powerful.

Let’s dig into a few that may be influencing you more than you think.

Constancy / baseline bias

We tend to normalise whatever we experience repeatedly, even if it’s stressful or unhealthy. If your household never talked about money growing up, silence might feel “normal.” If debt was always present, financial pressure might feel “expected.”

This becomes your emotional baseline. It takes real work (and often some outside perspective) to reset that baseline and build a new normal. One rooted in calm, clarity, and sustainable choices.

Consciousness (readiness) bias

Some things can’t be seen from where we are.

This isn’t about intelligence; it’s about perspective. We may simply not be ready to take in certain truths until something shifts. A relationship deepens. A crisis hits. Or we hear a story that unlocks something. (choice or trauma)

This is why compassionate financial advice matters. It’s not about shaming someone for what they haven’t done. It’s about walking with them until they’re ready to see something differently — and act on it.

Cleverness bias

Sometimes, we’re so determined not to be fooled that we become cynical. Especially if we’ve been burnt before by a dodgy financial product, a business partner, or even a parent who mismanaged money.

We distrust everything that sounds good, write off new ideas as too naïve, or reject help as unnecessary. But suspicion is not the same as wisdom. Building trust again, with yourself, and with your financial team, is part of healing.

Cash bias

It’s hard to question the system that pays you. If your job, career, or business relies on a certain status quo, like high stress, unhealthy margins, or keeping up appearances, it can be incredibly hard to challenge it.

But avoiding the question doesn’t mean the cost isn’t real. Separating the values of who pays you from what you truly believe or want is helpful in removing cash bias.

Conspiracy bias

When we feel threatened or ashamed, we tend to invent explanations that make us feel better, even if they’re not true! “The system is rigged.” “There’s no point trying.” “People like me don’t get ahead.”

Sometimes, these feelings are rooted in very real experiences of injustice. But the danger is when they freeze us. When they become a story we repeat instead of a prompt to reflect, reframe, and respond.

Bias is human. But awareness is powerful in that it enables us to see differently and choose differently. And financial planning, when done well, is not just a numbers game; it’s a chance to reflect, recalibrate, and reset the trajectory of your life.

Hopefully these three blogs will be an invitation to self-reflect, not to become self-critical. An invitation to pause. To ask, “What’s shaping me?” And then, with support, to shape something better.

If financial planning were just about logic, calculators would replace conversations. But as we all know, that’s not how life works.

Your relationship with money isn’t built solely on maths; it’s built on meaning. And meaning is shaped by how we see the world, how we were raised, the communities we belong to, and what we believe makes us “good” or “successful” or “safe.”

So let’s pack those calculators away for just a second.

This second blog in our series on bias looks at how identity-based and emotion-driven patterns can subtly (or not-so-subtly) shape financial decisions — even when they conflict with our goals!

Let’s explore a few examples:

Conservative / liberal bias

We’re not talking political parties, but rather the emotional undercurrents that shape how we define fairness, authority, liberty, or security.

Some people gravitate towards fairness and nurturing, wanting to provide, protect, and support. Others lean towards loyalty, structure, or personal freedom. These instincts affect how we approach money.

Are you more likely to help others first, or protect your independence? Do you seek consensus or prefer taking bold solo action? A financial plan that ignores these drivers might look great on paper, but won’t feel sustainable in practice.

Certainty / closure bias

Our brains hate not knowing. In fact, we’ll often grab onto the first answer that makes us feel safe — even if it’s not the best answer.

You see this in how some people rush to sell investments when markets dip, or how they hold onto outdated plans because at least “something” is in place. But reaching for closure too quickly can cost more in the long run.

The better approach? Create a plan that holds space for uncertainty. One that’s responsive, not reactive.

Comfort bias

Yes… this was mentioned in the previous blog, but it deserves repeating. Comfort bias is the emotional nudge to stay exactly where you are, even when the cost of inaction is high.

We avoid facing estate plans because they make us think about death. We delay tough conversations about money with family because they’re awkward. We procrastinate updating our cover or our will or our risk protection because “it’s not urgent today.”

A good planner helps you move gently, but firmly, through this fog. Small steps, big difference.

Catastrophe bias

We remember the big scary stories: job losses, market crashes, that one time a friend lost everything. But we forget the quiet, consistent wins, the savings that grew over time, the insurance that protected a loved one, the plan that kept a family steady during chaos.

It’s not that catastrophes don’t matter. But they’re not the whole story. Financial resilience is about zooming out, not just reacting to what made headlines last week.

Contact bias

If we’ve never truly listened to someone different from us — a different culture, class, gender, or generation — our assumptions often go unchecked.

This shows up in how we approach generational wealth, gifting, shared expenses, and even who we ask for financial advice. Sustained contact with “the other”, or simply hearing different perspectives, helps broaden our sense of what’s possible.

It helps us think better, together.

In the next and final blog of this series, we’ll explore the subtle biases that affect our sense of time, status, and self-worth. Because often, what feels like a “money issue” is really a mindset moment waiting to be reframed.

FACT: It’s hard to see what we can’t see…

One of the hardest truths to accept — in finance, relationships, and life — is that our thinking isn’t always as clear as we believe it is. We all have blind spots. Not because we’re foolish, but because we’re human. And, we don’t know… what we don’t know.

Biases are the invisible forces that shape our decisions and filter our perceptions. They form from lived experience, the communities we belong to, and the stories we’ve been told. And, they often do their work in silence.

You don’t notice them until you actively go looking. And even then, it takes courage to admit they might be holding you back.

In financial planning, these blind spots can derail even the most innovative strategy. A well-diversified portfolio means little if it’s being second-guessed by internal narratives you’ve never examined. This first blog explores six of the more common biases we see, especially when people are navigating life transitions or trying to plan responsibly for the future.

Let’s unpack a few:

Confirmation bias

We tend to believe what aligns with what we already know. When we encounter new data, we measure it against our existing assumptions — not necessarily against the facts. This is why some investors keep holding underperforming assets, or why clients dismiss opportunities that “just don’t feel right” even if they’re aligned to the plan.

When working through change, this bias can make us cling tightly to the past, rather than opening up to possibility. The antidote is curiosity — and a financial planner who can offer a new lens, not just more information.

Complexity bias

We assume complex problems need complex solutions. Sometimes, a simple and effective financial strategy is rejected because it doesn’t “sound clever enough.” But simplicity is often a marker of wisdom, not a lack of intelligence.

This is where our relationship can offer tremendous value — not by dazzling you with jargon, but by simplifying the noise into something you can confidently act on.

Community bias

It’s hard to question what everyone around you accepts as normal. If your peers are investing in property, starting a side hustle, or avoiding certain decisions, it can feel uncomfortable to choose a different path — even when that path is better aligned with your goals.

The goal isn’t to follow the herd, but to tune into your own definition of success.

Competency bias

We all have blind spots about how much we know (and how much we don’t). Some people overestimate their expertise and avoid professional advice. Others underestimate their understanding and feel too intimidated to ask questions.

The role of a financial planner isn’t to judge either. It’s to walk with you — to help you make confident, informed decisions, no matter your starting point.

Comfort (familiarity) bias

Let’s face it — change is hard. Our brains are wired to favour what feels familiar, even if it’s not working. We avoid the discomfort of revisiting old plans, challenging bad habits, or having difficult conversations.

That’s why small, manageable changes matter. A planner can help you take the first step toward a better outcome, without demanding a complete overhaul.

Confidence bias

We often trust the loudest voice in the room. Confident people, bold strategies, and market hype can sway even the most rational thinker. But confidence isn’t always competence.

That’s why part of financial planning is learning to trust your own process — not the noise. True confidence comes from clarity, not charisma.

In the next blog, we’ll explore biases that show up in our emotional and political identities — including our reactions to risk, fairness, fear, and control. Because when it comes to money, it’s never just about numbers.

It’s about what shapes us.

When it comes to financial planning, some goals can take decades to come to fruition. Retirement. Paying off a bond. Funding education. Leaving a legacy.

Long-term goals matter; they guide our decisions and give us direction. But here’s the catch: they’re also really far away. And without smaller wins along the way, it’s easy to lose motivation, second-guess our plan, or drift into inaction!

That’s why short-term wins aren’t just nice to have. In fact… they’re essential!

Short-term wins help us maintain momentum, they build confidence, and they remind us that progress is indeed happening, even when the big goal still feels far off.

You see, big goals take time. But our brains are wired for reward and reinforcement. When we only measure success by distant milestones, it’s easy to feel like we’re failing, even when we’re doing everything right.

Think about it:

– Saving for a 20-year retirement? That’s abstract.

– Finally reaching 3 months of emergency savings? That’s tangible.

– Changing the way you talk and feel about money? That’s a win.

– Getting your will in place? That’s a win.

– Tracking your spending for one month and noticing a pattern? That’s a win.

– Aligning your goals with your spending? That’s a win.

Micro-goals support the macro vision. They’re like trail markers on a hike, signs you’re going in the right direction, even when the summit is still out of sight.

Now, there’s no universal checklist. It depends on your life, your goals, and your starting point. But here are some examples that tend to work well across different situations:

• Setting up (and sticking to) an automatic debit into a savings or investment account
• Cancelling an unused debit order or subscription
• Having one difficult financial conversation with a partner or family member
• Meeting with your planner to review or refresh your goals
• Downloading and using a budgeting app for one full month
• Committing to a hobby that brings in a small extra income and a whole ton of joy

The win doesn’t need to be big. It just needs to feel real and reinforce that you’re moving.

Choose one area of your finances that feels stuck and define a small, clear win that you could realistically achieve in the next 2–4 weeks. Then… celebrate it when it happens! Not with champagne necessarily, but by creating space to acknowledge it.

This is how long-term planning becomes part of everyday life. Not through pressure, but through progress.

If you’re feeling stuck in the big picture, maybe it’s time to zoom in. Let’s work together to create a few short-term wins that energise your long-term vision.

Because sometimes, the fastest way forward isn’t by setting a bigger goal, it’s by completing a smaller one today.

Want a better life? Be boring…

Why?? Well, it can be argued that consistent, simple choices often lead to the most extraordinary outcomes!

Here’s the thing: We don’t often celebrate the word “boring.”

In a world that glorifies bold reinventions, dramatic success stories, and overnight transformations, being boring doesn’t exactly spark applause.

But when it comes to your financial life — and, honestly, your overall wellbeing — being boring in the right ways is one of the most underrated life hacks available.

Especially because so few people are willing to do it.

There’s a quiet confidence in choosing what works and sticking with it. A long-term investment strategy. Monthly contributions that feel unexciting but build serious momentum over time. Spending less than you earn. Keeping a budget. Updating your will. Insuring what matters.

None of it is sexy. All of it is powerful.

Here’s the truth: most people don’t fail because they don’t know what to do. They fail because they don’t want to do the boring bits. It’s easy to chase shiny new ideas, get swept up in market hype, or try to hack the system with a clever shortcut. Even intelligent people — especially those drawn to complexity — often overlook the simple disciplines that make the biggest difference.

Being boring means showing up with consistency, not drama.

It means building the life you want slowly, steadily, with the kind of decisions that don’t give you instant gratification but do give you freedom, clarity, and confidence over time.

Here are a few examples of what “boring” might look like:

• Saying no to a flashy investment that promises unrealistic returns — and yes to a diversified, goal-aligned portfolio.
• Choosing to pay off debt methodically instead of jumping between “quick fixes.”
• Scheduling annual reviews of your estate plan and medical cover, even when nothing feels urgent.
• Automating your savings, so progress doesn’t depend on mood or memory.
• Declining to upgrade your car or home every time interest rates drop — because you’ve defined what “enough” means to you.

Of course, being boring doesn’t mean being dull. In fact, quite the opposite.

When your money systems are solid, your risks are managed, and your goals are clear — you create space for a much more interesting life. You’re not lying awake at night wondering if you’ll be okay. You’re not living from one financial drama to the next. You have margin. You have options.

You have peace of mind.

If you want a better life, be boring in the places that matter, so you can be brilliant in the moments that mean the most.

Because boring isn’t about settling. It’s about focusing your energy where it counts.

For many people, the word budget triggers an almost visceral reaction: restriction, rules, red ink, and the end of fun as you know it. It’s no wonder so many of us avoid it, procrastinate on it, or feel a twinge of shame every time it comes up.

But what if we’ve been looking at budgeting all wrong?

A well-crafted budget isn’t a punishment for spending. It’s a permission slip for living — with clarity, with purpose, and without guilt.

Rather than asking “What do I have to cut?” a good budget asks “What do I want to prioritise?”

It’s not about saying no to lattes, holidays, or hobbies. It’s about saying yes to the things that matter most — and making sure your money flows toward those things, instead of being quietly eaten up by impulse or indecision.

In fact, some of the most empowered clients who have embraced budgeting not as a straitjacket, but as a tool for alignment. They know where their money is going. They know why it’s going there. And they’ve made intentional space for both freedom and security.

Here’s what that looks like in practice:

• A young couple that wants to travel before starting a family. Their budget includes a “joy account” that funds regular trips — guilt-free, because they’ve already planned for it.
• A business owner who’s reined in lifestyle creep so she can double her retirement contributions. Her budget gives her confidence, not constraint.
• A parent who allocates monthly money for spontaneous outings with their kids — knowing those little memories are worth far more than a new gadget or subscription.

In all of these cases, the budget isn’t there to limit joy. It’s there to expand it. To carve out the space for what matters, and to quiet the anxiety that often comes from not knowing whether you can afford something.

And yes, it takes effort. Setting up a budget means confronting some truths — about spending patterns, unconscious habits, or emotional triggers. But once you push through the discomfort, it creates permission. Permission to spend with confidence. To save with purpose. To plan with peace of mind.

This is especially true when life shifts: a new job, a growing family, a health scare, a move. A flexible budget becomes your companion through change — a way to stay steady even when everything else feels uncertain.

So next time you think about budgeting, don’t picture a spreadsheet full of limits.

Picture a roadmap. One that lets you navigate life with your hands on the wheel and your values in the driver’s seat. Or think of a treat jar that’s ready for you to dip your hand into and draw something delicious.

A budget doesn’t shrink your world. It shapes it.

Let’s help you create one that fits.

At first glance, many people often think that diversification is a strategy that focuses on spreading their money around a bit. But it’s about so much more than that; it’s about intentional design, making sure your investments and financial structures work together to support your life goals.

And this is where we encounter more complex challenges: most portfolios grow over time, often in layers. You buy a fund here, open a retirement account there, add a property, respond to market shifts, or follow advice from different sources at different stages of life.

Before long, you may end up with a portfolio that looks active and dynamic on the surface, but underneath, it’s carrying more overlap than variety and more risk than you intended.

And while duplication is one problem, the bigger one is often what’s missing. This is why we need to spot the gaps and overlaps.

Overlaps happen when multiple investments give you exposure to the same asset classes, companies, or sectors, even when packaged differently.

For example:

• Two balanced funds that both hold similar local equities
• A global ETF and a regional fund that both heavily weight Chinese tech
• A mix of asset managers all following similar strategies

The result? You may be taking on more concentration risk than you realise, while paying for diversification that isn’t actually working.

Gaps are just as important to identify. These are the parts of your portfolio where exposure is low or nonexistent, and yet they could play a critical role in meeting your goals or managing risk.

Common gaps we see include:

• No inflation-protected assets for long-term planning
• No exposure to emerging markets or global diversification
• No short-term liquidity for unexpected events
• No alternatives or income-generating assets for different life phases
• No succession or estate planning to support intergenerational goals

Gaps can show up in other areas too — like not having income protection, not being insured against major medical risks, or not having a will that reflects your current relationships and assets.

A well-built plan doesn’t try to cover every possible base. But it does aim for intentional, strategic alignment.

If you’ve built your financial life in layers over the years, it might be time for a fresh look. We can help you simplify the clutter, reduce duplication, and fill in the blind spots — with a plan that’s not just active, but aligned.

Because clarity doesn’t come from owning more, it comes from understanding what you own and why it’s there.

We often hear investors say, “I’ve spread my risk — I’m well diversified.”

But when we take a closer look, their portfolios tell a different story. We often find overlapping funds, highly correlated assets, exposure to similar sectors, or a long list of holdings that feel diverse but tend to move in the same direction when markets shift.

The truth? Owning more things doesn’t always mean you’re diversified. Sometimes, it just means you’re busy.

Variety is not the same as balance

Let’s say you own ten different unit trusts. That sounds diversified. But if eight of them are heavily invested in large-cap US tech companies, you’re still concentrated in one market theme. You might also be unknowingly exposed to the same risk factors across multiple funds, like inflation sensitivity, currency volatility, or interest rate movements.

Diversification isn’t about how many items are in your portfolio. It’s also about how those assets behave in relation to one another.

True diversification means combining assets that don’t all react the same way to the same economic events. When one asset goes down, another may hold steady or rise. That balance helps smooth out your experience during periods of uncertainty.

How to know if your portfolio is truly diversified

Ask yourself:

1. Are your investments spread across different asset classes like equities, bonds, property, and cash?
2. Are you diversified geographically, across different currencies and economies?
3. Are you exposed to a mix of sectors and investment styles, not just one theme or trend?
4. Do you have a range of time horizons that support both short-term liquidity and long-term growth?

If you’re unsure, it’s worth reviewing your allocations with fresh eyes.

One of the most common issues we see is something we call “diversification drift.” You may have started with a well-balanced plan. But over time, after chasing performance or adding new funds on impulse, the portfolio becomes cluttered and overlapping.

This kind of build-up can make your investments harder to understand, more expensive to manage, and less resilient when markets get rough.

A truly diversified portfolio doesn’t have to be complicated. In fact, simplicity often signals clarity and good planning. The goal is not to own everything, but to own the right combination that works for your goals, your timeline, and your risk comfort.

Sometimes that means trimming the noise. Sometimes it means adding exposure to areas you’ve been underweight. And sometimes it simply means pausing to ask, “What role is this investment playing in my plan?”

If your investment strategy feels cluttered or confusing, or if you’re not sure what each holding is really doing, let’s talk.

Rebalancing doesn’t get much airtime. It doesn’t come with dramatic headlines or adrenaline-fueled decisions. But behind the scenes, it plays one of the most important roles in long-term investing: keeping your portfolio honest.

Think of your portfolio like a garden. You plant with intention — a mix of investments that reflect your goals, your risk comfort, and the life you want to build. But over time, some parts grow faster than others. Left unchecked, what was once a well-proportioned plan starts to look lopsided.

That’s where rebalancing comes in.

WHAT IS REBALANCING?

Rebalancing is the process of realigning your investment portfolio to match its original target allocation. In simple terms: it means trimming what’s grown too much and topping up what’s been left behind.

Let’s say you set up your portfolio to be 60% equities and 40% bonds. If equities have a strong year, they might now make up 70% of your portfolio. That sounds like good news, and it is. But it also means your overall risk profile has shifted. Without rebalancing, you’re now more exposed to market swings than you intended to be.

Rebalancing brings it back into alignment. You sell some of what’s done well, and you buy more of what hasn’t — even if it feels counterintuitive in the moment.

Rebalancing isn’t about predicting the next big winner. It’s about staying disciplined. It’s about managing risk quietly and consistently, so that your portfolio continues to serve your goals and not simply chase performance.

Without it, you may find yourself unintentionally taking on more risk, or becoming too conservative over time. Both can sabotage your personal long-term outcomes.

It also reinforces a healthy investing mindset. It teaches you to buy low and sell high — systematically, not emotionally.

And in volatile markets, rebalancing becomes even more powerful. It gives you a practical framework for making decisions when everything feels uncertain. Instead of reacting, you rebalance.

Isn’t it hard to sell what’s doing well?

Yes. It can be.

Rebalancing goes against human instinct. When an asset class is booming, it feels wrong to touch it. When another is underperforming, it feels wrong to add more.

But that’s the discipline. That’s where real investing maturity lives.

Rebalancing asks:

1. What’s the plan?
2. What did I set out to do?
3. Has my life changed… or just the market?

And if the goal hasn’t changed, then the plan probably doesn’t need to either — it just needs rebalancing.

Rebalancing isn’t flashy. But over time, it helps protect your portfolio from becoming something it was never designed to be.

If you haven’t reviewed your asset allocation in a while, or if you’ve had major life changes, now’s a good time to pause and reassess. Let’s help you bring your investments and your goals back into balance.

Because financial planning isn’t just about chasing returns. It’s about staying aligned — to your plan, your purpose, and your peace of mind.

There’s a story many investors tell themselves: “I’ll wait until things calm down.” Or “Let me just see what the market does after the next election.” Or “Now isn’t the right time, I’ll invest when things look better.”

It sounds sensible. After all, no one wants to invest right before a downturn. But the reality? Waiting for the “perfect” moment often leads to missed opportunities and lost time that you can never get back.

Markets are unpredictable by nature. The moments when things feel most calm are often when gains have already happened. And some of the best days in market history have come immediately after the worst… meaning if you sat out the downturn, you probably missed the rebound too.

The data is clear. In Stocks for the Long Run, Jeremy Siegel highlights that missing just a handful of the best-performing days in the market over a decade can drastically reduce your long-term returns. One study from J.P. Morgan showed that if you missed the 10 best days in the market over a 20-year period, your overall return was cut in half.

Half!

All because of waiting.

That doesn’t mean you should throw caution to the wind or invest blindly. It means the most powerful factor in building wealth is time, not timing. The longer your money is working for you, the more you benefit from compound growth, dividend reinvestments, and market recoveries.

Even investing imperfectly — a little at a time, or through regular monthly contributions — is more effective than waiting for the mythical “right moment.” That’s why strategies like dollar-cost averaging (investing a fixed amount at regular intervals) help remove emotion and timing from the equation.

Fear can feel rational. The news can be scary. But long-term planning is built on discipline, not on predicting the unpredictable.

If you’ve been sitting on the sidelines, wondering when to start (or when to get back in), ask yourself what the delay is costing you. Not just financially, but emotionally.

Sometimes, the greatest relief comes not from avoiding risk entirely, but from having a clear plan and taking the next step forward. You don’t need perfect timing. You just need time. If you’d like to put a plan in place or revisit one that’s gone quiet, let’s chat.

Let’s ensure your future isn’t waiting for the market to behave, but is growing steadily from today.