Investment Analysts build models of businesses to help
understand complexity. The point of the model is not to be correct or not. You
know in advance that you cannot have an accurate map of the future.
Nature does not subscribe to the simple cause and effect story
that we use to try control the world. The point of any of the models in our
toolbox is simply to help us make sense of things in a human way. To add a
story. To add meaning. Like other tools we have made up – countries, words, money,
political parties, ideologies, agreements. They sit on top of reality to
process our controlled hallucination.
Personal Financial Plans are similar. They are not fixed in stone. They are not correct or wrong. They are an ongoing conversation. The only thing you can truly plan for is things not going according to plan. A good plan starts with a picture of where you are. Then builds towards capacity to adapt, adjust, and accommodate. As you change. As you live. As you add meaning.
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