The 2 Different Types of Planning
Real (as well as the Wise One) Life Centered Planning is always about Planning with your Life at the Center. In this one, the focus is on what happens in your life rather than what’s happening in the stock market. The outcome you are aiming for is to always have money when you need it, never have to worry about money and live the life you have imagined with your money.
Planning with your Money at the Center – I don’t mean Trading or randomly buying investment products but the one with an asset allocation strategy and regular rebalancing. The focus here is on risk – return, products, dreaming of timing the markets while attempting to beat some random benchmarks.
What’s most valuable to you?
Your Life or Some Random Benchmarks.
Your Financial Life (Living the life you have imagined with your money) is the Only Benchmark that should matter to you. All the other ones are distractions and will take you away from Real Life Centered Planning.
Your Financial Life depends on your ability to realize the difference.
What do you think?
As always, I would love to hear from you.