What Bali taught me about financial planning and preparation

I’m just back from Bali for a friend’s wedding.

I received the save the date in February 2025 – 16 months in advance.

Plenty of time to research a great trip. Instead, I decided to wing it

• Booked my flights 4 weeks before

• Found a hotel on the Sunday before I left

• Got my visa downloaded in the airport before the flight

Preparing to fail ...

Often people say – ‘fail to prepare, prepare to fail’.

That isn’t necessarily true. My trip to Bali didn’t fail.

However, it did cost me

• More time – 3+ hour car journeys at a snail’s pace

• More energy – researching on the trip, recovering from a questionable canapé

• More money – flights booked late when prices were far less friendly

None of these things ruined the trip. I still went to a beautiful place for a special occasion with good people.

But they did reduce how much I enjoyed parts of it.

Failing to prepare does not always mean failure. It usually means higher cost.

Preparation Lowers the Cost

Poor preparation causes stress, wasted time, and means you have to make decisions when you are under pressure.

I probably needed one or two hours a month of preparation to make the trip more enjoyable.

Nothing complex, just simple things to sort ahead of time. Small actions taken early.

It’s a lesson that doesn’t just apply to holidays. I see the same thing happen all the time as a financial planner.

Make Big Decisions Early

You might approach major financial decisions in the same way.

Moving home for example.

You know it is coming. You know you might want more space, a different area, a better school catchment, or a shorter commute. But the serious planning often starts only once the dream house appears on Rightmove.

Then everything becomes urgent.

Suddenly you’re trying to work out mortgage options, whether you can keep your old home, and whether the whole move actually fits your monthly cash flow.

None of those questions are impossible to answer.

They are just more stressful when asked late, and often they cost you

• More time – days get ambushed as you need to gather information quickly and understand it

• More energy – house transactions are stressful enough, expect a lack of sleep and a racing mind

• More money – increased property offers in desperation, accepting a lower offer than you could get, paying early repayment charges on your mortgage, fast tracking everything.

  
  

Moving home is a big decision that’s worth preparing for.

Preparing Before It Feels Urgent

Retirement is the same, but over a longer period.

Most people know they can't work forever. They know retirement is coming. They know, in theory, that pensions, ISAs, investments and tax efficiency matter.

But because retirement feels far away, it is easy to leave it for another year. Then another.

Then suddenly the cost of catching up is much higher.

Again, failing to prepare does not always mean failure. Nearly everyone retires.

It just costs you more - you may need to contribute more, work longer than planned, or take more risk than you would ideally like.

What Good Financial Planning Helps You Do

Planning isn’t about making life perfect.

It won’t stop bad traffic, flight delays or the occasional questionable canapé.

But it does reduce the number of avoidable problems you have to deal with.

Financial planning helps you prepare for life’s big decisions. It gives you more room to make decisions calmly.

Taking small actions early and doing the simple things over a long period of time will cost you less than winging it.

Whether you’re thinking about moving home, changing jobs, starting a family or working out when you can stop working, the principle is the same.

Preparation does not guarantee perfection.

But it usually lowers the cost.

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Risk warnings

Investments do not give the same capital security as cash deposits. Investments carry risks. The value of your investment (and any income from them) can go down as well as up and you may not get back the full amount you invested. Tax rates may change in the future.

If you do not keep up payments on your mortgage, your home could be repossessed.

The above article is not financial advice. If you need financial advice, please see an independent financial adviser (like us!).