What a bonsai tree has in common with financial success
I've been a fan of these little trees for a while now, eking out their miniature existence in one of those beautiful glazed pots. They are simply wonderful to look at and, in my opinion, have a very positive impact on their surroundings.
But more than that, they can be a direct symbol of your financial success, or success in general.
Because...
Nothing happens overnight
Bonsai is a symbol of patience. From the planting of a seed to a magnificent bonsai tree, many years pass. In the art of bonsai, it takes a long time to plan how a tree should be later and then painstakingly hand-cultivated and shaped over many years until it is eventually what you imagine a magnificent specimen of a bonsai.
Here we have the first bridge to financial success. Again, nothing happens overnight. At the beginning a basis must be created. Those who have not yet had much to do with financial topics will first have to read up thoroughly at the beginning in order to create a basis for a long-term perspective. Then, at some point the decision is made, one has a first idea or even a plan for achieving financial success and makes the first investment.
But now the whole thing really begins.
Daily greets the groundhog
Because just because you planted a seed, you don't have a tree the next day. You must constantly care for the bonsai, nurturing it and making sure it thrives within its environmental conditions. In doing so, the bonsai requires water almost daily due to the low water holding capacity of the small root system and the pot. But not too much and not too little. Consistency is the word I find most apt here.
The same goes for your investment plans. You have to deal with them permanently and steadily, and similar to the tree, invest time regularly to maintain your planning and deal with the long-term chances of success of your shoot. Consistency is key here, so as not to be carried away too much by emotions or tempted by wrong decisions. If you constantly deal with the market in which you are active, you know it and can get an overview over a longer period of time. This is how you avoid traps such as Fomo.
Consistent shaping
Such a bonsai does not grow as a bonsai at all, but as a tree. For those who don't know: Bonsai translates roughly to "tree in a pot." In fact, this tree in a pot has some features that are characteristic of it, but these features are not initially present. The bonsai becomes a work of art by being shaped into it. You have a vision of what the tree might look like one day and you wire, prune and bend it every year to get it piece by piece to the point you want it to be.
We have the same scenario when we look at our finances. We have laid a foundation, but it is not enough to be successful in the long run. This only works if we deal with the actual situation piece by piece and make a comparison with our goal. Along the way, we must constantly work on our planning and, if possible, optimize or even completely revise it.
Observe and adjust to change
A product of nature does many things, but often does not behave as we would like it to. Nature is peculiar and so it happens that things or even trees can change quickly. Some bonsai species are very sensitive and can die completely within a few days. That's why it is important to observe the tree and recognize possible changes early on in order to be able to react accordingly.
This is no different in financial markets. Especially in 2020, they are anything but constant. Markets and our environment in general are changing much faster nowadays than they did a few decades ago. The world has become faster and it has become all the more important to perceive the change that is happening around you and to adapt yourself. So it is in the financial sense as well - you have to be alert and ready to rethink your beliefs of yesterday and take into account coming changes in your own plans.
A never ending project
There are bonsai trees that have been cared for over many generations, reaching an age of over 1000 years. A period of time that exceeds any human life many times over. And these trees are still alive. They know no natural end, as long as the environmental conditions allow it. But even these old trees need regular care. Without consistency in care, even these 1000 year old trees would deteriorate and die. That is why it is the custom in Asian families to pass on the art of bonsai to the next generation at an early age.
Also, your own financial planning never ends, at least not if there is someone to whom you bequeath your finances. For example, many people plan to bequeath their belongings to their children after they pass away. In this case, taking care of your own financial planning will never end. It will be passed on to the children so that, in the best case scenario, they can take care of it and continue what their parents started with.
This was my little story on this perhaps unusual comparison. I think in general that bonsai is a very nice way to illustrate a relationship. In this post, just the relationship to one's financial success.
I wish you all consistent and long-term success and hope you enjoyed this post.
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A great analogy which tells the entire story.
Consistency is the key, something that most overlook.
Consistency over long periods of time under the desires result is achieved.
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Absolutely. The long term always requires constancy, stamina and adaptation to change.
Like Bonzai financial success doesn't happen in ome day it takes years sometime decate to financial success
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Sometimes it takes not only years, but even decades. But in the end, staying power can pay off and reward those who have it.
The comparison was unusual like you stated, but very well executed.
Thank you for this reminder - not too little, not too much
That is why it is called; The golden mean
My mom always says "Money doesn't grow on trees" whenever I'm asking her to buy me something (when I was younger). I learned the importance of saving money because of it. Which is good...
However, adding your analogy of "growing tree = growing wealth" to "Money doesn't grow on trees" could have been better learning for me as a child.
In most cases, people save money so they can spend it on something they want. It's like they grow a tree in order for them to cut it down and turn it into charcoal for them to burn. Guilty :(
Recently, I'm learning how to change that and slowly changing my ways with the hope of achieving financial stability (if not success) in the near future. Cheers
Great read! Very helpful :)
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You hit the nail on the head. That saying that money doesn't grow on trees is absolutely justified. However, many take it as a basis for saving in order to then consume this saved money. Since I define financial success primarily in terms of achieving financial freedom, this approach is counterproductive. Because this sentence says in essence that you should keep your money with you and so do the older generations also increasingly. At the same time, as you say, you should invest your money in such a way that it can work for you. Because in the long run, you work for money, or your money works for you. Then everyone must decide what he wants.
These things can last more than hundreds of years if taken cared for generations. I know I've seen a documentary of one family passing a single bonsai tree for generations. The same concepts of preserving wealth within the family. I learned about how the people from Netherlands have their way of preserving wealth through generations and I'm amazed at how a system can thrive. Bonsai is one creative way to represent wealth building done right.
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Right, guess that's what I told in this post and why I shared it...
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