Bonsai & Financial Advice? An Unlikely Connection

Most of us have seen the unique form of the bonsai tree and perhaps even admired the passion and commitment of the person who created the tree in this ancient art – but did you know that the specific set of skills and mindset required to complete a truly remarkable bonsai tree is almost identical to those required to be successful in Investing and wealth creation? I know it's not the usual thing you think of when someone says, "Hey, what do I need to do to build wealth?" but as you will see below, as with the creation of a bonsai, there are several very similar steps required for the creation of an enduring and successful financial strategy.  Let's consider the processes and how they are so similar.

• Engage - To create a truly beautiful, aesthetically pleasing, and unique bonsai, a long-term ongoing commitment is required, along with a passion for the art.  it takes time.  This means you must be fully engaged and committed, as it is a long and involved process that takes many years to perfect.  This is also true when it comes to building a sound financial future.  You also need to be fully engaged and committed to the process and must be willing to make the sacrifices required to succeed and achieve the result you're looking for. You must be engaged with the process.

• Design - This is the first step.  Ask any successful person, and they will tell you that before growing, building or creating anything, you need to have a clear vision of what you want to achieve.  You need to set the right foundations.  You need a clear plan and design.  With bonsai, you start by having a vision for what you want your tree to look like, what type of plant will fit that vision, what form it will take, and what pot will complement its ultimate form.  Finding the right container and soil is critical to ensure bonsai has a sound foundation to grow consistently and with as little variation as possible; without this, the tree will not survive long term.  Over time, in response to environmental or other changes, the eventual result may look a little different, but in the end, it should be substantially close to the original design and vision you had in mind as it is with financial planning.  Financial success starts with a well-designed plan based on your particular needs and goals.  Without the right plan, strategy,  knowledge, commitment, courage, can-do attitude, and the guidance and support of a qualified and committed advisor to help you design, implement, manage and review your plan, your ultimate design (vision) may not be achieved.

• Protect - Protection is critical. The constant and ever-present risk and threats of too much/too little sun, wind, water, insects & diseases need to be mitigated or managed to enable the bonsai to grow into a healthy and strong tree.  Likewise, a good Financial Adviser will help you protect the foundations of your wealth by identifying, reducing, mitigating or avoiding the impacts of unexpected events such as market volatility, changes to legislation, rules & laws, accidents, illness, Divorce, or even premature death.  Protecting your income, assets, and /or lifestyle enables you and your family to continue to have a future and achieve your long-term goals.

• Nurture – A bonsai left unchecked will either wither and die or grow wherever it may; it needs to be constantly watered, fed, pruned, guided, managed and delicately shaped, often with the help of wire to support it at its weakest part or guide it gently so it grows into the shape that is required and achieves the form that is desired. A good financial plan and strategy should also be constantly reviewed and monitored. This constant help and guidance from your Adviser is the supportive wire that keeps you focused on achieving the desired outcome even when life throws in unexpected challenges, such as marriage, divorce, births, disability, unemployment, sickness or death. These events can significantly impact your life or your family in many ways; however, a good advisor will help keep you and your financial goals on track, responding to changes in the environment and nurturing your growth whilst empowering you with knowledge along the way. 

• Grow – Finally, a bonsai must be regularly fed, watered and fertilised, and provided with sufficient shelter & light to maintain the growth & health of the plant. It needs constant attention.  A Financial Strategy is no different.  The key to achieving financial success is to follow the plan but be flexible enough to consider that people's lives and circumstances often do change, and if your circumstances change, so should your financial strategy.  From the time you start your strategy, it will need to be fed with attention, fertilised with knowledge, sheltered and protected with the right insurance, and a contingency plan put in place in the event of things not going according to plan.  This constant maintenance is delivered by way of regular review and maintenance and is integral to achieving ultimate financial success.

So now you understand the genesis of prosperity and wealth management, why we have a jade bonsai as our logo, and why there is a significant connection between advice and the ancient art of bonsai.