Article by Renato Mota, Financial services executive published in the AFR
As I embark on my preparations for the Berlin Marathon on September 21, I find myself reflecting on the surprising parallels between marathon training and financial planning.
At first glance, these two pursuits may seem unrelated, but upon deeper examination, valuable lessons emerge.
Building wealth requires endurance and patience.
Preparing for a marathon is a long-term goal that requires a combination of discipline, technical knowledge and behavioural awareness. Similarly, financial planning demands foresight and an understanding of potential pitfalls that can undermine success.
Unfortunately, human nature is predisposed to prioritise immediate rewards over long-term benefits. This tendency is rooted in brain chemistry – dopamine, a neurotransmitter responsible for feelings of pleasure, reinforces short-term gratification. Whether it’s indulging in an extra slice of cake, purchasing a pair of shoes, or chasing social media validation, the immediate satisfaction these actions provide can often work against our broader, more significant objectives.
So, how can we counteract these tendencies and remain focused on our goals?
Avoid the instant gratification trap
Running a marathon is not a sprint – it requires endurance and patience. Similarly, building wealth and achieving financial security is a long-term endeavour that necessitates a focus on delaying gratification today for more meaningful outcomes in the future.
A critical component of financial planning is setting clear, specific goals with defined timeframes. This clarity helps individuals recognise the necessary trade-offs required to achieve their financial objectives.
By making these trade-offs explicit, we can counteract our natural inclination toward immediate pleasure-seeking behaviours.
A simple, yet effective strategy is writing down financial goals and the associated trade-offs. Research has shown that individuals who document their goals are significantly more likely to achieve them than those who do not.
This structured approach transforms abstract ambitions into actionable plans, reinforcing commitment and accountability.
Marathon training demands consistent effort and unwavering discipline. Sporadic runs are not sufficient – success requires a structured plan that is followed diligently.
Developing habits that reinforce goal-oriented behaviours is essential in making self-discipline feel more natural and sustainable.
James Clear, in his best-selling book Atomic Habits, famously states, “You do not rise to the level of your goals. You fall to the level of your systems.” This insight highlights the importance of establishing routines that minimise obstacles and support long-term objectives.
For instance, some runners sleep in their running clothes to eliminate barriers to early morning runs. Similarly, in financial planning, automating savings and prioritising investments can reduce the cognitive burden of daily financial decisions.
As billionaire investor Warren Buffett advises, “Do not save what is left after spending, but spend what is left after saving.”
Adapting to changing conditions
Marathon training often involves adapting to various conditions, such as weather changes, terrain variations, and physical fatigue. Successful runners remain flexible and adjust their strategies accordingly.
The same principle applies to financial planning. Market fluctuations, economic shifts, and personal life changes can all impact financial goals.
A well-diversified portfolio that spans different asset classes and investment horizons provides flexibility and resilience. Nobel Prize-winning economist Harry Markowitz famously described diversification as “the only free lunch in investing”.
One effective personal finance strategy is the bucketing approach, where savings are allocated into different categories based on risk and return profiles.
Short-term goals are placed in low-risk assets, while long-term goals are invested in higher-risk opportunities. Whether saving for a car, a home deposit or retirement, aligning investment strategies with time horizons is crucial to staying on track.
The value of expert guidance
In preparing for my marathon, I am seeking guidance from various sources, including community groups, online forums, and digital training programs.
However, despite the wealth of available resources, I often question whether an algorithm alone can fully prepare me for this challenge. With a significant investment in my journey to Berlin, I cannot afford to leave my performance to chance.
The same applies to financial planning. Major life events – such as retirement or purchasing a home – require expert advice to navigate successfully.
According to the Association of Superannuation Funds of Australia (ASFA), many Australians approaching retirement hold an average of nearly $500,000 in savings but often do not seek professional financial guidance.
While the cost of financial advice can range from $3000 to $5000, this expense should be viewed in light of the value created from this advice. Strategic financial planning can significantly add to wealth creation over time, far exceeding the cost of advice.
To maximise my marathon preparation, I have chosen to work with a professional running coach. While this will be my first experience running in Berlin, my coach has guided countless runners before me.
With millions of Australians approaching retirement, it is essential that they, too, have access to experienced financial professionals who can provide tailored strategies and support.
The compounding effect of good decisions
As I reflect on the running journey ahead, I do so with a mix of excitement and apprehension, fully aware that there are no shortcuts.
Elite athletes understand that high performance stems from the compounding effect of good decisions – consistent execution of small, deliberate actions that accumulate over time to produce remarkable outcomes.
The same principle applies to financial planning. Wealth is not built overnight, nor through a single lucrative investment. Rather, financial wellbeing is the result of making disciplined decisions consistently over time, leveraging strong investment principles such as diversification and risk-adjusted returns.
In both marathon running and financial planning, discipline, expert guidance, adaptability, and accountability are key.
With the right strategies and support, what might otherwise seem overwhelming can be transformed into an enriching and rewarding experience.
Note: This article was originally published on the AFR with the title “5 ways financial planning is like marathon training” on 13 March 2025.
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This information provided in this article is general advice only and has been prepared without taking into account your own objectives, financial situation or needs. Before making a financial decision based on this advice, you must consider whether it is appropriate in light of your own needs, objectives, and financial circumstances, and where relevant, obtain personal financial, taxation or legal advice. Where a financial product has been mentioned, you should obtain and read a copy of the Product Disclosure Statement (PDS) prior to making any decisions about whether to acquire a product.