I recently watched the show Loki on Disney Plus and there is a lot of discussion surrounding timeline variants.
I think too often we have the expectation that creating a financial plan is a one-time or linear event.
This could not be further from the truth. Financial planning is an ongoing process. There will be many timeline variants that will require some course correction.
Financial planning for the worst
We certainly want to hope for the best, but it is prudent to plan for worst-case scenarios also.
What happens if things do not go as planned?
What if you don’t get the promotion?
What if you get laid off?
What if you end up moving somewhere else for a job? Another state? Another country!?
The last thing you want to worry about when life doesn’t go your way is money. When you have an adequately funded emergency fund, the flat tire on the way to work is more of a minor inconvenience. When a family member passes and you can get on the next plane without giving a second thought to the price, and be fully present, you at least have one less thing to worry about.
Financial planning isn’t all bad
Thankfully, financial planning isn’t all doom and gloom!
What if things go better than expected!?
What if you get the promotion?
What if the promotion takes you to your dream city, that may or may not be more expensive?
What if you decide to purchase a vacation home?
What if you end up wanting to start a business?
Having more assets and more liquidity gives you more options.
Perhaps you will use those assets to retire earlier than expected or to pursue other passions.
Though it seems like most people are programmed to ‘not save too much’ no one wants to get to retirement with too little.
All investing involves risk including loss of principal. No strategy assures success or protects against loss.
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