Money is Not Math and Math is Not Money

When you walk into most financial planning meetings, the conversation goes a whole lot like this:

“When do you think you’d like to retire?”

You give them some arbitrary number.

They say something along the lines of, “That sounds great! Many of our other clients shoot for that too! Now when you retire, what kind of income are you hoping to have?”

You give another arbitrary number. (Because you know what kind of income you’re gonna need…)

They ask how much you currently have saved. Then they’ll typically tell you a rate of return you can expect or they’ll ask you what you want to use, plug a couple things in the calculator and WA-LAH! You know exactly how much you’ll need for your nest egg and how much you need to save each month/year to get there.

And best of all, you see a beautiful exponential curve that only goes up. Your plan seems rock solid!

If only our financial lives actually worked like that…

Math Doesn't Account for Life

One of the biggest misconceptions in financial planning is treating your money like a math problem. The problem is math works perfectly on spreadsheets. Life doesn't. Life can’t go on a spreadsheet. 

What most people would say is a plan is not actually a plan. That’s just a math equation with a lot of different variables missing. 

They may tell you it’s “tax planning” by putting money in their “bucket system” of tax free, taxable, and tax deferred. But it’s still going in the same accounts in the same market with the same expectations, just with a tax wrapper.

Math assumes everything goes according to plan. Your income never changes. You never have unexpected expenses. Markets never crash when you need the money. You never get sick, sued, or face a family emergency.

Money, on the other hand, exists in the real world. It gets affected by taxes, fees, inflation, and life events. It responds to emotions, opportunities, and unforeseen circumstances.

Financial planning should not be math-based. It ought to be based on macroeconomics and how one thing affects the other.

The Problem with Perfect Projections

Most financial strategies involve you following through perfectly for decades. They assume you'll never need to access your money early. They don't account for market volatility when you're taking distributions. They ignore the reality that life throws curveballs.

What happens when your "perfect" plan meets an imperfect world? You're left scrambling to make adjustments without a real strategy.

This is why you need to build contingencies around everything you're building. Your financial plan should work under any and all circumstances.

You don't buy car insurance hoping to get in an accident. You buy it knowing that if something happens, you're protected. The same principle applies to your entire financial strategy.

When you focus on building wealth with certainty rather than hoping for perfect returns, you create staying power. You build systems that can weather storms and capitalize on opportunities.

One such system is the Rockefeller Method. The method is revealed in the bestselling book What Would the Rockefellers Do? by Garrett Gunderson. Click here to get your free copy now.

Plan for Maximum Potential

In my practice, we don't plan for needs. We plan for maximum financial potential. When you plan for your maximum potential, your needs will be met.

Think about this: nowhere else in your life do you settle for "just enough." You wanted a specific car, so you bought it. You wanted a particular house, so you got it. You pursue what you want in every other area of your life.

Your financial life shouldn't be different. You should go after everything you can and then some.

That may sound like a greedy statement or even materialistic. But that’s not at all what I’m trying to convey.

What I’m trying to convey is that you need to take the best care of your money today if you want it to take care of you later. Where else in your life does it work out when you just do the bare minimum needed?

Remember: the goal isn't to have the perfect mathematical projection. The goal is to build a financial foundation that works no matter what life throws at you.

Math is predictable. Life isn't. Plan accordingly.

Want a strategy that works in real life—not just on paper?

Download your free copy of What Would the Rockefellers Do? and discover how to build a resilient wealth strategy that gives you options, protects your peace of mind, and grows across generations.