Financial Panning Should Adapt as per the Circumstances

We all might have used the Google Map sometimes in our life, and whenever we find the route on it for any place which we have to travel, it gives us the time it will take and the estimated time of arrival. At that time Google Maps have given the estimate as per the current route, the amount of traffic usually at that time and some other factors. It didn't count on the time you might have for resting or eating. That means it knows only the distance and the average pace person can drive but it never knows about your circumstances, whether you drive fast, slow, need to stop for restroom or anything else.

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Similarly, when we check the retirement calculators or any calculators for our goal, we just tell the calculators about the goal and the end value. The calculator will give a value that we have to invest Rs X for the next X years to achieve the goal after X years. The calculator will not know that will you be contributing regularly for the next x years or if you will be rebalancing etc. Just like in the Google Maps analogy we can take a break for lunch, there is a possibility that in the financial planning of the circumstances is not in favour of us we have to take a break from investing for one or more months.

The calculator just gives us an approximation, many things can go right or wrong in the financial journey like exceptional returns, very few returns, taking breaks etc. The google map is not wrong in giving the approximate results and the financial calculators are also not wrong. They just give us the direction towards our goal by assuming that we will follow it. Though what will happen after X years is purely about the circumstances we will be in and thus the financial planning should adapt as per the circumstances.

In my case, I have two long term goals going on, 1. Retirement 2. Child Education. I am investing as per these financial calculators, but this month I have to skip because of personal expenses but I know the end goal even though I have taken the break, if the returns are good I will be able to achieve it or when I will have some spare money I can invest that to come back to the track but whatever is the case we should be heading towards our goal and not think about some hiccups which we encounter in the middle of the financial planning road.