One of the big highlights of the annual Six Nations championship is the storyline around a team attempting to win a Grand Slam.
Despite the challenge of winning five consecutive games in what is a highly competitive event, since the tournament expanded to six teams in 2000, there have been 13 Grand Slam seasons.
At the other end of the achievement scale is the metaphorical “wooden spoon” for the team that finishes bottom of the table.
In this article, you can read about three of the key traits that successful teams in the Six Nations display, and how you can apply these to your finances to ensure your plan is a Grand Slam rather than a wooden spoon.
1. A strong emphasis on doing the basics well
All successful Grand Slam teams will have skilful, world-class players who will tend to get the plaudits and headlines when their team is successful.
If you look back at teams that have won the Grand Slam in the modern era, all of them had a strong pack that won the ball at set pieces and in the loose to create a stable platform on which the backs could utilise their skill and speed.
They will also have had a high-performance defence, and will generally have kept errors to a minimum, limiting the scoring opportunities for opponents.
When it comes to your financial plan, some of the key factors to a successful strategy match that of a Grand Slam team. Indeed, that means doing the basics well, avoiding unnecessary mistakes, and maximising all your opportunities.
These are likely to include:
- Having a clear idea of your financial objectives
- Planning for emergencies such as illness or injury
- Making the most of tax-efficient options and opportunities.
Creating a financial plan starts with a strong foundation that will support the rest of the structure, and these aspects can help you do exactly that.
2. The ability to adapt if and when circumstances change
It is rare that a team will walk off the pitch at the end of a game and know that everything went exactly to plan. Even the most successful sides, including Grand Slam winners, will be aware that the best-organised sides can be challenged by unforeseen events.
Such events could include an injury to a key player, or a red card reducing your team to 14 players early in a match. Both of these could easily necessitate a change of tactics and an alteration to match strategy.
But crucially, successful teams will be adaptable and able to cope with such challenges without reducing the likelihood of success.
The same will apply when it comes to your financial plan. It is probably inevitable that you will face financial challenges and events that will make changes to your plan necessary.
Some challenges may be external ones, such as:
- A period of high inflation
- The government announcing major changes to taxation
- The club you play for facing financial problems.
Others may be personal to you, including:
- The birth of children
- Suffering a severe, long-term injury
- Moving to play abroad.
In each case, like a team changing their tactics during a game, your financial plan will need to be flexible enough to respond to any issues you face. It also needs to be able to minimise the effect of any negative changes and take advantage of any positive ones.
3. The ability to refresh and renew your plans
As you will be aware, no team has ever managed to follow a Six Nations Grand Slam with another clean sweep the following year.
However, one common ability that many Grand Slam teams have shared is the ability to remain successful over several years. This will be based on a series of factors, such as creating a positive team dynamic, effective succession planning, and creating depth in all positions to negate the effect of long-term injury.
In the same way, having a robust and effective financial plan in place will only be the start of your financial story. It will be important to regularly review it, and ensure it still reflects your goals and aspirations.
Carrying out reviews at least once a year can help make sure you are on track, while also giving you the opportunity to make adjustments as required.
Furthermore, in the same way that a Six Nations coach will make use of data to ensure their team performs at its peak over a long period, you could also benefit from doing the same with your financial plan.
One of the most important aids in this regard will be cashflow modelling. This software allows you to visualise your financial future, taking into account various underlying assumptions. You can then adjust your plan to see how different strategies will help you meet your objectives.
Get in touch
If you would like to speak to a professional who understands the challenges faced by professional rugby players, then please do get in touch with us at DBL Asset Management.
Email enquiries@dbl-am.com or call 01625 529 499 to speak to us today.
Please note
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
The Financial Conduct Authority does not regulate cashflow modelling, estate planning or tax planning.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
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.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
