28 June 2024

“The Championships”, more commonly known simply as “Wimbledon”, where the event takes place, is one of the biggest grand slams in the tennis calendar.

In 2023, the number of spectators who attended the event hit a record high of 532,651 over the 14-day schedule.

For many of the world’s elite tennis players, winning at Wimbledon is the holy grail of sporting achievements.

So, as the tournament prepares to commence on 1 July, read on to discover four valuable financial planning lessons you could learn from the inspiring words of Wimbledon’s greatest players.

“There’s no right way, there’s no wrong way, there’s just my way”

Ashleigh Barty is an Australian former professional tennis player who won Wimbledon in 2021, before announcing her retirement the following year.

Barty’s decision to take a hiatus from her tennis career at the age of 18 to pursue her love of cricket and “experience life as a normal teenage girl” demonstrates her commitment to following her own path.

When it comes to financial planning, you may be wise to take a leaf out of Ashleigh Barty’s book and adopt the philosophy, “There’s no right way, there’s no wrong way, there’s just my way”.

Indeed, there’s no one-size-fits-all template for effective financial planning. Your circumstances, needs, and aspirations are unique to you. So, you need a bespoke plan that will help you progress towards your goals.

For example, if your primary goal is to retire early, your financial plan is likely to be different from that of someone whose main aspiration is to build a significant legacy to leave their loved ones.

What’s more, your circumstances and hopes for the future may change over time. So, periodically reviewing and updating your plan could ensure that it remains relevant.

“You have to believe in the long-term plan you have but you need the short-term goals to motivate and inspire you”

Roger Federer is considered by many to be one of, if not the, greatest tennis player of all time. He has won 20 grand slam singles titles, including eight at Wimbledon, and set countless records in the sport.

The Swiss champion’s wise words about the importance of setting goals to help you stay motivated, are just as true of financial planning as they are of being an elite athlete.

By setting meaningful and realistic short-, medium-, and long-term goals, you could:

  • Create effective action plans and strategies for achieving your objectives
  • Gauge your progress towards these milestones
  • Maintain your focus and motivation long-term
  • Quickly spot if you’re veering off course and adapt your approach.

Indeed, balancing short- and medium-term goals – such as dream holidays or moving house – with longer-term goals, like retirement planning, is a cornerstone of effective financial planning.

“If you’re afraid of losing, then you daren’t win”

So said Bjorn Borg, the first man to win five consecutive singles titles at Wimbledon between 1976 and 1980.

Unfortunately, many investors are plagued by a fear of losing or “loss aversion” – a theory which suggests that losses are felt twice as strongly as the pleasure of gains. As a result, people go out of their way to minimise the risk of loss, rather than pursuing potential gains.

Indeed, research by Lloyds Bank found that 48% of adults in the UK choose not to invest because they don’t want to risk losing money. And yet, long-term investing could offer the potential for greater gains than cash savings, which may be eroded by inflation over time.

Additionally, if you fail to take on enough risk when investing, this could hamper your progress towards your long-term financial goals.

If you lack the confidence and knowledge to invest, a financial planner can help you build a diversified portfolio that balances your level of risk. This could help you combat loss aversion and generate the growth you desire.

“However great your dedication, you never win anything on your own”

Rafael Nadal has finished as the year-end number one five times, won 22 grand slam singles titles, and been crowned men’s champion at Wimbledon twice.

The Spaniard makes an important point about tennis, financial planning, and life in general when he speaks of the benefits that come from building a supportive team around you.

Nadal draws comfort, knowledge and guidance from his family and the sports professionals who surround him.

Likewise, talking to your loved ones about financial matters – such as your estate plan and later-life care – could help you and your family build financial resilience and prepare for the future.

Just as Nadal relies on his coaches for their expertise and guidance, you could gain similar benefits from working with a financial planner.

Having an objective sounding board and expert advice could allow you to create a plan for achieving your aspirations in life and prevent you from making irrational, emotion-based decisions.

Get in touch

If you’d like to find out more about how to create a financial plan tailored to your specific circumstances and goals, we can help.

Please email us at info@doddwealthcare.co.uk or call 01228 530913 / 01768864466.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only. 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. The Financial Conduct Authority does not regulate estate planning.