There is beauty in simplicity





As we grow up and experience more of the world, we learn that a topic typically gets more complicated as we dive deeper into it. For example, supply and demand is a concept most of us can grasp quickly, but having a deep understanding of how these variables are affected by changes in interest rates, inflation and trade relations requires further study. We also find that for those who push past a certain point in any discipline, things seem to simplify again.



The detail fades away, you unlearn some of the complexities that don’t seem to matter, and you’re able to distill the subject into the few key points that really matter. True simplicity comes from a deep understanding and appreciation for the subject matter. When shared, this simplicity allows the rest of us to make sense of the world without becoming an expert in every field. Every great teacher or writer has this quality. Richard Feynman’s writing can make anyone appreciate the key lessons in physics, and he’ll make you laugh. Who would have thought physics could be humorous?

View some of his videos on YouTube, if he’s unfamiliar to you. COMPLEXITY FOR ITS OWN SAKE Unfortunately, we too often encounter complexity where simplicity is what we really need. In many cases it’s used to confuse, leaving the recipient with little understanding, and keeping them reliant on the expert. The financial industry is no different. Experts highlight the dismal level of financial literacy and argue for financial education to be part of the school curriculum, yet very few contribute to the changes we need. Most industry players are complicit by using complexity to spread fear and a reliance on an industry which is happy to sell a product without having the buyer understand what they are getting themselves into.

If there’s anything we’ve learnt from the history of the financial markets, it’s that there are a few key learnings which will always apply. Once you approach every new crisis with this knowledge, the world becomes much simpler. SIMPLE IS BETTER Money, too, can be simple if you want it to be. If it’s complexity you want, then financial product providers will give it to you. There’s a product for every financial fear (including FOMO) you might have. But starting here is likely to lead you astray.

You’ll need to work out what these mean for you and the lifestyle you want to have. A new crisis might make you second-guess your tactic, taking you back to square one. A true understanding of money allows you to build on your understanding of your own situation and the life you want to live— your Ideal Life, as we say at PEEK WEALTH. A strategy can then be built on a simple understanding of the concepts of spending less than you earn, investing and insuring for your unknown future, providing for short term expenses, compound interest, and historical market returns combined with old-fashioned discipline and patience.

We have found that people find the above process easier when it’s facilitated by a caring financial adviser who can educate, encourage, and hold them accountable. Products may be required, yet they’ll be put in their rightful place. THE CHOICE IS YOURS We have a choice between simple and complex in many areas of life. Sadly, complexity is often perceived as clever and sophisticated. It’s easy to look down on a simple strategy when a complex one will make you look smart. With financial matters, nothing could be further from the truth.

The real tragedy is that many don’t know that simplicity with money is an option. They accept the complicity sold to them with the result of often being overwhelmed with a lack of understanding. In many cases this leads to disengagement, which itself compounds into long-term consequences. Our experience is that ‘simple and done’ is almost better than ‘complex and perfect’. Clients acting and engaging in their own financial affairs leads to a proper understanding of how their decisions will impact their long-term future.

Do yourself a favor, take this question to your financial advisor—how can my plan be simplified to remove the unnecessary please? As a bonus, if you’d like to see how you fare across the 10 key areas of financial planning, scan the QR code you see.