What could The Great British Bake-Off teach you about successful financial planning?

The Great British Bake-Off has become a true icon of UK television. Now in its 14th series, the show is loved by viewers across the world.

You don’t need to be a baker to take delight in watching the contestants try their hand at increasingly complex tasks set by judges Paul and Prue. In fact, some of the things that make the show so captivating can provide helpful lessons that apply to other areas of life too – including financial planning.

Read on to discover what the bakers can teach you about successful financial planning to ensure your investment portfolio never suffers from a “soggy bottom”.

1. Your ingredients can make or break a bake

The bakers love to include a wide range of both familiar and exotic ingredients to make their bakes stand out to the judges. While some can lead to an impressive flavour combination, others fall flat. The wrong ingredients, or an incorrect proportion of ingredients, can cause dough to become too wet or create unpleasant flavours that simply don’t work.

The same could be said for your financial plan. Choose the right balance of correct “ingredients” and you’re much more likely to hit your long-term financial goals. This might include an emergency fund, a well-balanced portfolio aligned with your risk profile, and a sprinkling of financial protection.

As the bakers often discover, keeping things simple yet high-quality often trumps attempting fancy flavours or unusual substitutions in the ingredients list.

2. Baking without a recipe can lead to disaster

Each week, the bakers are presented with a “technical challenge” in which they are provided with ingredients and a significantly pared-down recipe (steps can include simply “make the batter” and “bake in the oven”). They must rely on their experience and skill to decipher the instructions and produce an unusual bake, which most have usually never seen before.

While viewers are shown an example of the intended result by the judges, the contestants are often working blind.

When you’re saving for a financial goal or planning your retirement, a recipe or help from an expert is just as crucial. Making unsuitable decisions about your investments and savings throughout your life could mean that you find yourself woefully short of the required funds by the time you need them.

This is why working with a financial planner can be so beneficial. Even though there’s no such thing as a one-size-fits-all “recipe” for financial planning, they can use their expertise to offer sage advice that gives you the greatest opportunity to achieve your goals.

3. It’s all about patience

Sometimes, the bakers spend most of their time waiting for dough to rise or for jelly to set. It’s a careful balance between sufficient proving and baking while still finishing their work within the allotted time frame. 

In the same way, investing is as much about being patient as it is about taking action. This can be one of the most difficult parts of growing your wealth, particularly when you’re excited to reach your goals.

Bakers who give in and take their bakes out of the oven before they’re ready often find themselves with inferior final products, losing valuable credit with the judges and risking elimination from the competition. Do the same with your investments and you could find that it’s far more difficult to achieve your goals, too.

4. Even the most experienced bakers can panic under pressure

Despite the quaint and cheerful tone of the programme, it’s no secret that the bake-off tent is a highly pressurised environment. Strict time limits, unpredictable British weather wreaking havoc on delicate confectionary, and the cold hard stare of Paul Hollywood can all turn the most experienced bakers into nervous wrecks.

As an investor, the emotions you experience towards your investments can be one of the greatest challenges to overcome in achieving your goals. Elation at a rise in value might tempt you to invest more when prices are high, and despair at falling prices can lead to you selling at the lowest prices – quite the opposite of a sound strategy.

By being mindful of the possible influence of your emotions, you can take steps to ensure you’re being objective about any changes you make to your portfolio.  

Read more: 7 fascinating cognitive biases that could negatively affect your wealth

5. Each baker puts their own spin on the task at hand

In a tent full of some of the UK’s most accomplished home bakers, it can be tough to stand out. That’s why many of the contestants put their own spin on the tasks they are set.

From moving tributes to family members, to celebrations of their respective homelands, no two bakes are the same.

In much the same way, financial planning is all about making the most sensible decisions for you. Your investment portfolio is likely to have a slightly different balance of asset types than your friends or colleagues. This is so that it aligns with your personal attitude to risk and gives you the greatest opportunity to achieve your long-term goals.

Get in touch

If you’d like to learn more about how to make managing your finances a piece of cake, please get in touch and we’ll be happy to help.

Email theteam@fortitudefp.co.uk or call us on 01327 354321.

Please note

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.

This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.