When does a situation change?
For example, one could move on to a new field in finance.
Or, a particular goal could have been achieved. Now, one’s approach is supposed to incorporate predefined changes for financial strategy post goal-accomplishment.
Family dynamics could be responsible for situation changes too.
Sure, health. Never underestimate the power of health. It can make you, and it can break you.
Emotion. Fell in love? Going crazy? Outbursts? Hot flashes? Preggers?
Logistics? Moving? New girl-friend in New York?
Looking after your parents in their old age?
Wife wants to party all the time? Lack of sleep?
Promotion? Demotion? Fired? Jobless? Suddenly self-employed?
Gone single? Date-circuit? Got married? Had a kid?
Situation changes come to all. Not once, but many times in life.
Why are we talking about them?
They have an effect on our financial strategy. That’s suffices.
I’ll tell you how I deal with situation change. You can then BODMAS your way to your own approach, using my approach as a broad outline.
My first approach is to put on auto-pilot as many of my financial activity as possible. Going paper-less helps. Trusted auto-bill-pay channels are assets. Fixed-income generators with auto annual-alerts give financial security with zero involvement. SIPs and dividend pay-ins are further examples of having gone auto.
Then I look at what is left. What has not yet gone on auto-pilot? Can it? Ever? If there’s a chance, I go for it. For example, I’m currently developing a software robot to automate my forex trading.
Lastly, I size up what is not pushable into auto-mode. Do I want to keep it? Can I do without it? Weigh, weigh, weigh, scrap A, scrap B, C is something I just have to do, manually, period, so keep C. Eventually, C, G, P, X and Z are five manual financial activities I keep, having scrapped the others (that refused to go on auto) out of my life, since I didn’t consider them burningly essential. C, G, P, X and Z are the ones that’ll weigh me down when my situation changes. I’ve kept them on doable levels. Some are on semi-auto but do require manual intervention. The others are fully manual.
My situation changes.
My auto-pilot activities continue their smooth run. They are my assets, my stars.
P, X and Z are on semi-auto. I barely gather the energy to look into their manual aspects, just about managing to keep them going with reasonable results.
C and G are bogging me down. Can’t keep up. No energy. No motivation. Situation change has drained me. Relentlessly, I try. C has turned a loser. Beginning to feel sick. I shut down C. Losses.
G is sucking me out. Emotionally. It’s a winner, though. Can’t keep up. Can I turn it into semi-auto? It required constant monitoring till it started winning big. I’ll still need to feed in my stop daily. That’s the manual part. I stop looking at G. Problem with equity orders is that your stop has little technical value overnight. A new day requires renewed stop-considerations. Ok, five minutes daily for G. Open terminal, set trigger-stop 9.99% below opening price, close terminal, don’t look left or right, done.
Save health. Don’t fall sick.
If sick, rest.
Get used to new situation.
Gear up for next situation change, whatever it is, whenever it comes.
Gear up now.