In “How the Chaos/Order Cycle Relates to Financial Planning,” MQ Partner Joseph Kuo, CFP writes about the parallels that can be found in “creation myths” and financial planning.
But as with the chaos cycle in mythology, financial planning follows a similar cycle. As time passes, we progress, and our lives change, the plan no longer fully represents what we want or need. Left alone, the plan becomes obsolete, and turns into a source of stagnation if we continue to follow it blindly.
And so we take stock of reality and re-introduce chaos into the plan so that we can re-evaluate what is possible now. Out of the new possibilities, we reassess and refine/recreate the plan. We restore order to the chaos, and the cycle repeats itself.