Flow or Plan

Amar Pandit , CFA , CFP

Some people naively say “I never plan. I just go with the flow”, while many believe in the process of planning.

What about you?

Here are 2 statements for you to reflect on.

a. If you don’t have a plan for never running out of money, it then means you likely have a plan of running out of money.

b. If you don’t have a plan to maintain for lifestyle till the age of 100, it means you likely have a plan of not maintaining your lifestyle.

I must make a finer point though. In the above 2 statements, when I refer to a plan, my emphasis is on the process of planning (and not the plan as an ultimate document).

Why is that?

This is because as we plan, shit happens. Plans fail all the time. Thus, we need to course correct thoughtfully. And what comes in handy at that point of time. The Plan that we have made, the Process we have followed, the assumptions we have made and the new realities in front of us.

When we go without a plan but just with the flow, we simply react. But at the same time, we are never married to a plan. We are married to the process of planning.

This Mark Manson tweet captures my thoughts perfectly.