Stock-Flow Diagrams for Life Decisions

BY NICOLE LAU

Life is about resources—money, energy, time, relationships, knowledge, health. These resources accumulate (stocks) and flow (in and out) over time. Understanding these dynamics is the key to making sustainable decisions. But most people think in snapshots—"How much money do I have now?"—not in flows—"At what rate is my money increasing or decreasing?"

In Dynamic Divination Modeling Theory, we use Stock-Flow Diagrams (SFDs)—a systems dynamics tool that maps how resources accumulate and flow over time. Combined with divination, this creates a powerful framework for life planning, resource management, and long-term decision-making.

This article teaches you how to create Stock-Flow Diagrams from divination readings, transforming abstract guidance into concrete resource models you can use for strategic life planning.

What is a Stock-Flow Diagram?

Core Components

Stocks (Rectangles): Accumulated quantities that can be measured at any point in time
• Examples: Bank account balance, energy level, number of relationships, knowledge base
• Notation: Drawn as rectangles or boxes
• Behavior: Change only through inflows and outflows

Flows (Arrows with valves): Rates of change—what moves into or out of stocks
• Examples: Income (inflow to money), expenses (outflow from money), learning (inflow to knowledge)
• Notation: Arrows with valve symbols (⊳⊲) showing rate control
• Behavior: Measured as amount per time unit ($/month, energy/day)

Sources and Sinks (Clouds): External reservoirs (infinite supply or capacity)
• Examples: The job market (source of income), the universe (source of opportunities)
• Notation: Cloud symbols
• Behavior: Don't deplete or fill up

The Fundamental Equation

Stock(t) = Stock(t-1) + Inflow - Outflow

This simple equation governs all stock-flow dynamics. Your bank account tomorrow equals your bank account today plus income minus expenses. Your energy tomorrow equals your energy today plus rest minus depletion.

Creating Stock-Flow Diagrams from Tarot

Step 1: Identify Stocks (What Accumulates)

Look for cards representing accumulated resources or states.

Pentacles = Material/Financial stocks:
• Four of Pentacles = Hoarded wealth (stock)
• Nine of Pentacles = Accumulated prosperity (stock)
• Ten of Pentacles = Generational wealth (stock)

Cups = Emotional/Relational stocks:
• Six of Cups = Accumulated memories (stock)
• Nine of Cups = Emotional satisfaction (stock)
• Ten of Cups = Family harmony (stock)

Swords = Mental/Knowledge stocks:
• King of Swords = Accumulated wisdom (stock)
• Eight of Swords = Accumulated limiting beliefs (stock)

Wands = Energy/Creative stocks:
• Nine of Wands = Accumulated resilience (stock)
• King of Wands = Accumulated creative power (stock)

Step 2: Identify Flows (What Moves)

Look for cards representing movement, action, or change.

Aces = Inflows (new energy entering):
• Ace of Pentacles = Money/opportunity flowing in
• Ace of Cups = Love/emotion flowing in
• Ace of Swords = Clarity/truth flowing in
• Ace of Wands = Inspiration/creativity flowing in

Fives = Outflows (energy leaving/loss):
• Five of Pentacles = Resources flowing out/loss
• Five of Cups = Emotional energy draining
• Five of Swords = Mental energy depleting through conflict

Knights = Active flows (rapid movement):
• Knight of Pentacles = Steady work flow
• Knight of Cups = Emotional pursuit
• Knight of Swords = Ideas rushing in/out

Step 3: Draw the Diagram

Create a visual map showing stocks (boxes) and flows (arrows).

Example: Financial Stock-Flow

[Income Source] → ⊳Income Flow⊲ → [Bank Account] → ⊳Expense Flow⊲ → [Sink]

Tarot mapping:
• Income Source = Ace of Pentacles (opportunity)
• Income Flow = Eight of Pentacles (steady work, $4000/month)
• Bank Account = Four of Pentacles (current balance: $10,000)
• Expense Flow = Two of Pentacles (balancing, $3500/month)
• Net flow = +$500/month (accumulating)

Step 4: Quantify Stocks and Flows

Assign numerical values based on card interpretation and reality.

Example quantification:
• Current stock (Bank Account): $10,000
• Inflow (Income): $4,000/month
• Outflow (Expenses): $3,500/month
• Net flow: +$500/month
• Projected stock in 6 months: $10,000 + (6 × $500) = $13,000

Complete Life System: Multi-Stock Model

The Four Core Life Stocks

Most life decisions involve four primary stocks:

1. Financial Stock (Money/Resources)
• Inflows: Income, investments, gifts
• Outflows: Expenses, taxes, losses
• Tarot: Pentacles suit

2. Energy Stock (Vitality/Health)
• Inflows: Rest, nutrition, exercise, joy
• Outflows: Work, stress, illness, burnout
• Tarot: Wands suit, The Sun, Four of Swords

3. Relational Stock (Social Capital)
• Inflows: New connections, deepening bonds, community building
• Outflows: Conflicts, distance, broken relationships
• Tarot: Cups suit, Three of Cups, Two of Cups

4. Knowledge Stock (Skills/Wisdom)
• Inflows: Learning, experience, mentorship
• Outflows: Forgetting, obsolescence
• Tarot: Swords suit, The Hermit, Hierophant

Integrated Stock-Flow Model

These stocks interact—flows from one stock can affect another.

Example interactions:
• Financial stock → Energy stock (money can buy rest, healthcare)
• Energy stock → Financial stock (energy enables work, which generates income)
• Relational stock → Financial stock (connections create opportunities)
• Knowledge stock → Financial stock (skills increase earning potential)

Case Study: Career Transition Stock-Flow Analysis

Question: "Should I quit my corporate job to start a business?"

Tarot reading (Stock-Flow Spread, 9 cards):

Financial Stock:
• Current: Four of Pentacles (hoarding, $50,000 saved)
• Inflow (corporate): Eight of Pentacles ($8,000/month salary)
• Outflow: Two of Pentacles ($5,000/month expenses)
• Net: +$3,000/month (accumulating)

Energy Stock:
• Current: Four of Swords (depleted, 3/10 energy)
• Inflow: The Sun (potential for renewal, if change happens)
• Outflow: Ten of Wands (burnout from current job, -2 energy/month)
• Net: -2 energy/month (depleting)

Knowledge Stock:
• Current: King of Pentacles (high expertise in current field)
• Inflow: Ace of Wands (new learning in business, +5 skills/month if start)
• Outflow: Minimal (skills don't deplete quickly)

Stock-Flow Diagram:

Scenario A: Stay in Corporate Job

[Salary Source] → ⊳$8K/month⊲ → [Financial Stock: $50K] → ⊳$5K/month⊲ → [Expenses]
Net financial flow: +$3K/month

[Burnout] → ⊳-2 energy/month⊲ → [Energy Stock: 3/10] → ⊳minimal inflow⊲
Net energy flow: -2/month (depleting toward 0)

Projection (12 months):
• Financial stock: $50K + (12 × $3K) = $86K (growing)
• Energy stock: 3 - (12 × 2) = -21 (burnout, unsustainable)

Scenario B: Start Business

[Business Revenue] → ⊳$0-4K/month (uncertain)⊲ → [Financial Stock: $50K] → ⊳$5K/month⊲ → [Expenses]
Net financial flow: -$5K to -$1K/month (depleting initially)

[Renewal] → ⊳+3 energy/month⊲ → [Energy Stock: 3/10] → ⊳lower stress⊲
Net energy flow: +3/month (recovering)

[Learning] → ⊳+5 skills/month⊲ → [Knowledge Stock] → (builds business capability)

Projection (12 months):
• Financial stock: $50K - (6 × $5K) + (6 × $2K) = $32K (depleting then stabilizing as revenue grows)
• Energy stock: 3 + (12 × 3) = 39 → capped at 10 (full recovery)
• Knowledge stock: Significant growth in business skills

Stock-Flow Analysis

Scenario A (Stay):
• Financial stock: Growing (+$36K/year)
• Energy stock: Depleting (burnout in ~18 months)
• Sustainability: Unsustainable—energy stock will hit zero, forcing change anyway

Scenario B (Leave):
• Financial stock: Depleting initially (-$18K in 6 months), but $32K remaining is adequate runway
• Energy stock: Recovering (full recovery in ~3 months)
• Knowledge stock: Growing rapidly
• Sustainability: Sustainable if business revenue reaches $5K/month within 10 months (before financial stock depletes to critical level)

Critical thresholds:
• Financial: Need $20K minimum for safety (6 months runway at $5K/month burn)
• Energy: Currently at 3/10, need to recover to 7+/10 to sustain business effort
• Time: Have 10-month window before financial stock becomes critical

Decision: Leave corporate job. Energy stock depletion in Scenario A is unsustainable and will force change anyway (likely at worse time). Scenario B has adequate financial runway ($50K → $32K over 12 months) and enables energy recovery, which is necessary for business success. Key risk: Business must generate $5K/month revenue within 10 months.

Action plan:
• Month 1-3: Focus on energy recovery (rest, health) while building business foundation
• Month 4-6: Ramp up business effort (now have energy to sustain it)
• Month 7-10: Critical revenue generation period—must hit $5K/month by Month 10
• Monitor financial stock monthly—if drops below $25K before Month 10, reassess

Advanced Technique: Delays in Stock-Flow Systems

Some flows have delays—time between cause and effect.

Example: Learning → Earning Delay

[Learning Effort] → ⊳+5 skills/month⊲ → [Knowledge Stock] → ||6-month delay|| → ⊳+$2K/month⊲ → [Income]

You invest in learning now, but the income increase happens 6 months later. This delay can cause:
• Impatience ("I'm learning but not earning yet")
• Premature quitting (giving up before delay period completes)
• Cash flow problems (expenses now, revenue later)

Divination insight: I Ching Hexagram 5 (Waiting) or tarot Hanged Man often indicate delays. Factor these into stock-flow projections.

Stock-Flow Optimization Strategies

Strategy 1: Increase Inflows

Find ways to increase the rate of positive flows.

Example: Ace of Wands (new opportunity) suggests potential to increase income inflow from $4K to $6K/month. This changes net flow from +$500 to +$2,500/month—5x faster accumulation.

Strategy 2: Decrease Outflows

Reduce the rate of negative flows.

Example: Two of Pentacles (balancing) suggests cutting expenses from $3,500 to $3,000/month. This changes net flow from +$500 to +$1,000/month—2x faster accumulation.

Strategy 3: Build Stock Buffers

Increase stock levels to handle variability.

Example: Four of Pentacles (hoarding) suggests building financial stock to $20K before taking risks. This provides buffer against unexpected outflows.

Strategy 4: Manage Delays

Account for time lags in planning.

Example: The Hanged Man (suspension) suggests 3-month delay between action and results. Don't expect immediate stock changes—plan for delay period.

Long-Term Planning with Stock-Flow Models

5-Year Projection

Use stock-flow equations to project long-term trajectories.

Example: Retirement planning
Current financial stock: $100K
Annual inflow (savings): $20K/year
Annual outflow (expenses): $0 (invested, not spent)
Investment return: 7%/year (additional inflow)

Year-by-year projection:
Year 1: $100K + $20K + ($100K × 0.07) = $127K
Year 2: $127K + $20K + ($127K × 0.07) = $155.9K
Year 3: $155.9K + $20K + ($155.9K × 0.07) = $186.8K
Year 5: $251.5K
Year 10: $476.3K

Divination insight: Ten of Pentacles (generational wealth) confirms this trajectory is aligned with long-term abundance.

Why Stock-Flow Diagrams Change Life Planning

Traditional planning: Static snapshots, "How much do I have now?"

Stock-flow planning: Dynamic models, "At what rate am I accumulating or depleting?" "What's my trajectory?" "When will I hit critical thresholds?"

This transforms life planning from guesswork into resource engineering—you see exactly how your resources flow and can optimize for sustainability.

The old way: Check bank balance, make decisions based on current state. The new way: Model stocks and flows, project trajectories, identify critical thresholds, optimize inflows and outflows, plan for delays, ensure sustainability. From static to dynamic. From snapshots to flows. From guessing to engineering. This is stock-flow modeling for life decisions.