18 November is the birthday of perhaps the most famous and best-loved fictional character of all time, Mickey Mouse.
This year, he turned 97. Since his creation, Disney has grown into one of the world’s largest media companies, producing films under its own name and through Pixar and its other divisions.
So, with Mickey’s birthday having just passed, what better time to take a look at some of Disney and Pixar’s timeless classics and find out what they can teach you about financial planning?
Read on to discover four lessons you can learn from some of their best films.
1. Inside Out and behavioural biases
Inside Out has two focuses. The first is the life of a young girl called Riley, and the second is her mind, where her emotions constantly influence her decisions and reactions.
As each of her emotions battles to get its way, Riley is steered in conflicting directions, and her life suffers the consequences.
The moral of the story is that balance is integral to emotional stability, and it’s important not to get carried away by a single overriding emotion.
Financial decisions can work the same way: allowing behavioural or emotional biases to take over can lead to negative outcomes. Indeed, some of the emotions depicted in Inside Out can lead to bad financial decision-making. For example:
- Fear can trigger panic selling during market downturns, which typically means you won’t be able to recover your losses when the market rebounds. You can read more about this in our previous article on the topic.
- Joy could lead to you getting carried away and following the latest trend or high performer, which is often not the best strategy for long-term stability. You can also read more about this in our previous article on the topic.
- Sadness could mean you are overwhelmed after losing a loved one and leave you neglecting important financial affairs, which can affect your long-term security.
Just as Riley learns to balance her emotions, financial wellbeing and sound decision-making depend on recognising the feelings that drive your choices and not being overly influenced by any of them.
A financial planner can provide perspective and guidance to help you navigate the ups and downs of money management, which can increase the likelihood of you achieving long-term security.
2. Up and the value of taking a long-term approach
In Up, the opening montage shows Carl and Ellie growing up together, getting married, and spending a lifetime dreaming of a trip to Paradise Falls. They save for the adventure, but Ellie’s death prevents them from ever taking it together.
Determined to honour her memory, Carl sets out alone and lifts their home into the sky with thousands of balloons, guiding it towards Paradise Falls.
Carl’s journey demonstrates the power of long-term commitment. Even when his plans are derailed, he stays focused on what matters most and adapts along the way to ensure he reaches his goals.
Financial planning benefits from a similar mindset. Focusing on your long-term goals and adjusting as life changes can help ensure you achieve all the things you set out to.
The story of Up is a moving reminder that patience, discipline, and resilience can turn a long-held, distant dream into a reality.
3. The Incredibles and the importance of diversification
The Incredibles tells the story of the Parr family, each of whom has a unique superpower.
Mr. Incredible has strength, Elastigirl can stretch, Violet can become invisible and create force fields, Dash is fast, and Jack-Jack has unpredictable abilities.
When facing villains, the family succeeds because they combine their different powers. If one member is down, the others can still contribute, and their complementary abilities reduce the risk of failure.
The diversity of their abilities is their greatest strength and ensures their overall stability. Any investor worth their salt will tell you that the same is true in financial planning.
Portfolio diversification means spreading your investments across different asset classes, regions, and markets. This approach helps reduce the impact of any one setback, as weakness in one area can be balanced by strength in another. Over time, this can help smooth the inevitable ups and downs of market performance.
Much like the Parr family, a well-diversified portfolio is resilient because it does not rely too heavily on a single market.
4. Pinocchio and the need for trusted advice
In Pinocchio, the young puppet is tempted by shortcuts and misleading promises during the early stages of his life.
He often strays from the path he knows he should follow and is led into danger by malevolent characters, while ignoring Jiminy Cricket, who characterises his conscience.
Just as Pinocchio should heed the advice of his confidante, so too should you listen to the experts you trust.
Financial planners can be the Jiminy to your Pinocchio. They can help you understand the long-term consequences of short-term decisions and keep you focused on your goals when distractions or temptations arise.
Seeking and heeding advice from experienced professionals can save you both time and money and prevent costly mistakes before they happen.
To speak to a financial planner, get in touch.
Email us at hello@vwmwealth.com or call us on 0141 229 4004.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
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 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.
