The tension between making future plans while appreciating our present is a universal human experience. We are programed to think ahead but often experience the most pleasure by focusing on the here and now. This tension may be particularly acute when it comes to our finances.
The Passage of Time
Time is such a strange concept. Time is always passing; we are aging with every minute. It happens so slowly we don’t feel it. Then suddenly we do. Something happens to make us recognize the passage of time. In some ways twenty years ago seems like just yesterday. In other ways, it feels so distant that we might have just dreamed it or read about it in a book.
As a younger person time had a boundless quality. Life seemed never ending and there was plenty of time to put things off for later. Personally, as I age, I become more aware of the limits of time. My awareness prompts me to regularly re-evaluate my priorities, goals, and aspirations. It also calls me to examine my personal relationship with time, productivity, and delayed gratification.
Productivity v. Mindfulness
Many religions are based upon the principle of duty now and reward in the afterlife. We need not be religious to have been influenced by the protestant work ethic. We all live within a capitalist society, which promotes the “you can rest when you’re dead” line of thinking. These philosophies have lead many of us to feel guilty when we are not producing, saving, and preparing.
Recently, in many of the spaces I frequent, I am witnessing push back against productivity culture. Instead, there are calls to be present in the moment. Mindfulness is certainly valuable. It is so easy to focus on the task awaiting us or the ever present distractions of living in the digital age. The abundant interruptions interfere with our attention to the everyday moments and small instances of joy.
Inherent Contradiction of the Human Experience
I don’t believe that people exist to toil and suffer. The more that I study, the more I learn that our current societal systems are based upon colonization and oppression. Capitalism, patriarchy, and white supremacy tell us that our value is in our output rather than our existence. We must fight these ideas.
Yet, the history of the human race is one of planning ahead. We build shelters, we cultivate farms and gardens, we store and preserve food for the winter. Our brains are wired to think toward the future. Our species has survived and thrived through forward thinking.
This dichotomy makes intentional living very challenging. How do we live in the present while planning for the future? How do we find joy in everyday life while also considering the long term consequences of our current actions? How do we balance our own needs against those of others? We must make some daily sacrifices to prepare for the future. But, when taken too far, we risk missing out on a lot of fun and enjoyment.
The Role of Planning
Financial planning helps people to navigate these same conflicts. It can be challenging to live conservatively enough that we are not endangering our financial future, while also making the most of our present day. Knowledgeable financial planning does not involve sacrificing all pleasure to save for every potential eventuality*. If that were the case I could tell all of my clients “live as sparsely as possible and save every cent conceivable.” I have yet to meet a client whose goal was to die with lots of money in the bank after living a life of deprivation. Instead, my goal is for clients to maximize their lives in the present and the future. This involves balance, consideration, and deliberate trade-offs.
*You may have noticed that I am not a huge fan of either Dave Ramsey or the FIRE Movement.
As a financial planner, questions I commonly hear include:
- How much do I need to work and earn today to cover my current expenses and save for the future?
- What expenditures can I make that will allow current enjoyment without creating future liabilities?
- How much insurance do I need to protect me without throwing away money on premiums for coverage I will never receive?
The answers to these questions are unique to each individual and each circumstance. There is no single answer and no a way to prepare for any eventuality. Furthermore, in attempting to do so, we are at risk of sacrificing our current desires. Conversely, if we do not make some preparations we may find ourselves in tenuous situations in the future.
There is also no right answer. These are logistical questions, not moral ones. So many people feel shame over not earning enough, not saving enough, or not being adequately prepared. Plenty of people simply do not earn enough to save what experts believe they “should.” This is not a reflection of their intrinsic value, their humanity, or their work ethic. Instead it is an indication of their current circumstances and a reflection of our societal structures.
If you are struggling with the above questions, check out the services I offer or contact me to see how I may be able to help.
Adjusting the Plan
Planning does not mean rigidity. One very important feature of humans is our ability to adapt. Plans are rarely effective when they make no allowance for adjustments. Instead, once a plan is created, it is vital to monitor it and to make modifications to accommodate changes in circumstance. But, to modify, we must first have a plan. Without any plan we are at a great disadvantage. We are much less likely to achieve goals that have never been defined.
Very little in life is certain. But the less prepared we are, the less likely we are to succeed in our goals. We will likely never reach a place of certainty. Our life circumstances and goals will always be evolving. We will always be balancing the present and the future. Life is a constant cycle of plans and revisions. While there are few simple and definitive answers, there is still substantial value in financial planning.