I love efficiency.  That phrase would make for a pretty boring t-shirt, but I would still buy it.  I love the certainty that comes from knowing from the time my feet hit the floor in the morning till I am ready and dressed for work takes 14 minutes.  I am fascinated by the process of cutting out the excess and trimming the fat!  Years ago I thought that maximum efficiency was the goal and how truly successful businesses scaled and grew.  I wasn’t wrong, but there was also a very important factor to my thinking that was missing.  When you are running the tightest of ships, with no slack in the line, you leave no room for change and little room to pivot.  You need some slack.  Slack is a good thing, especially in your finances.  

You need slack in planning for how much it’s going to cost to fly your child home from college, how much you want to spend on your daughter’s wedding, how much you plan to spend around the holidays and so many other important areas of your money.  Can you imagine building a retirement plan that said, “You can spend 85,000 per year, with an annual increase of 3.0% for inflation, but if you spend $85,100 per year you’ll likely run out of money…”  

The right amount of slack gives you a window of opportunity to adapt and change course when it’s time.  I still enjoy poking fun at my brother who planned this amazing family trip years ago and for each 12 hour daily itinerary, filled to the brim with sights, there would be one 15 minute slot titled “flex time.” 🙂 

This year and moving forward, I encourage you to try and look at the areas of life and money where you think you’ve let the line run too loose or you’ve been running too tight.  If you need help, call us! 

Happy Friday and enjoy a slack-filled weekend!