One question my clients often ask is “what are we missing or forgetting about when it comes to our financial planning?” And while everyone has a blind spot or two that I can usually point out, remember that the only thing any of us know with any real certainty is that things will happen in our lives that we can’t predict ahead of time.

Given that reality, the question then becomes…

If you can’t know what’s going to happen ahead of time, how do you prepare for life’s many uncertainties?

A good place to start is by letting go of the idea that you can know how it’s going to go or that you can get it “right” with proper planning. Holding onto either of these beliefs is just a recipe for future disappointment.

Work instead to position yourself so that your life becomes more figure-out-able.

Figure-out-able means aligning your financial resources and life choices in a way that respects life’s many uncertainties by optimizing for flexibility and optionality.

One example might be building a larger cash cushion than perhaps you initially thought you might need. By doing so, you create more financial breathing room when something unexpected pops up. And with more financial breathing room, you’re now able to figure out the best way forward without being under unnecessary financial stress. 

More cash on hand = greater flexibility and optionality = increased figure-out-ability. 

So take a moment to look at your financial situation with fresh eyes. 

How much margin have you built into planning? Does everything need to continue exactly as it is today for you to be ok? And where could you add more margin?

The more margin you build into your planning, the more figure-out-able your life starts to become. And there’s no greater peace of mind available than that in a world full of uncertainty.