If you’re not familiar with the term “tensegrity” it’s an abbreviated way of saying tensional integrity.

I’m intrigued by this idea of structural integrity that’s dependent on continuous tension.

For a visual of what this looks like, watch this 15 second video using LEGO to demonstrate how this works.

And I think the concept of tensegrity also applies to your financial planning…

As I’ve shared with you many times before, financial planning really boils down to trade-offs:

Spend today or save for tomorrow
More investment risk vs less investment risk
Retire sooner or later
Give money to your family while you’re alive or after your death
Pay more in taxes today in an effort to pay less taxes down the road
Pay down debt or invest
And the list goes on. And on.

And here’s the thing.

These trade-offs create tension. In our minds and in our lives.

Your personal decisions on some of the trade-offs listed above will be very different from your friends, your family, and your co-workers.

And they should be different because they’re yours, not theirs.

Also, your perspective on these trade-offs today can — and probably will — change over time.

Many people ask me questions that often seem grounded in the “black or white fallacy.”

They seem to think — or want to believe — that financial decisions are always a simple either/or.

More often, they should be considered as both/and decisions.

For instance, rather than oversimplifying a decision like paying down debt OR investing, why not pay down debt AND invest.

Or spend today AND save for tomorrow.

This is where I think the idea of tensegrity comes into play.

It’s this tension between your present self and your future self that creates and maintains your financial plan.

It gives your plan “structural integrity” and helps make it work.

Otherwise, if you fall into the trap of always spending as little as you can, saving as much as you can, working as long as your can, taking as much risk as you can, etc…

Well, that’s not a financial plan. At least not in my opinion.

There’s nothing personalized about it. And there are no benefits from regularly reviewing and adjusting it, because there’s nothing to adjust.

And while it might lead you to a secure future, it will be at the cost of your current lifestyle.

And your life. Which you only get one shot at…

Of course, the solution isn’t the opposite extreme. You shouldn’t live only for today at the cost of planning and preparing for the future.

Again, it’s about balance.

And that balance comes from this idea of continuous tension between what you may want to do today vs what you need to do for tomorrow.

I’m curious… what do you think about this idea of “tensegrity” as applied to your financial planning and decision making?

Financial Tensegrity