Financial Bonsai

What if you practice Financial Bonsai?

Financial Bonsai is no different than the art of Bonsai. Here the artist takes a small tree and keeps it small though trimming the new growth and the roots. The final effect can look great if done correctly. Trees are also stunted in nature - where there is not enough water or food for them.

Finances can, in the exact same way as a tree, grow from a small seed if properly cared for and eventually turn into a great tree. Many people in life are financial bonsai artists. When there is new growth it is cut off in some manner and the growth is not allowed to expand the tree or the roots that support and feed a big tree. Let's take a look at an example:

You are working and get a bonus - you did not expect it and you see it as "spendable" since it was not expected. What can you do with it?

• You spend it on a night out buying you friends drinks and a movie. The bonus was a shoot of growth on your financial tree and you cut it off.

• You could have saved it or at least a portion of it.

• You could also have invested it in some way where it would grow faster than in a savings system.

Of course your criticism that one must enjoy life is entirely valid. Spending the money may be seen as enjoying life. Again this is true. But consider the reality of it. What if you spent say half, and kept the other half saved or invested. With the power time gives to money properly saved or invested, you may find that it is enough to buy a new car and spoil yourself with a night out later on in life. Remember the small things in life that you do over and over and over...... are really the big things. This is because lots of small actions over a long time are tremendously powerful. Many single bricks or stones were used to build the Great Wall of China.

Now, the first step in controlling anything is to become aware of it, the second is to know that it can be controlled and the third is finding out how to control it. These three steps get you ready to control but by themselves they are useless. The next part is to actually take action and begin controlling. All to often such control begins and then gradually fizzles out as life and other activities distract you. The trick is to keep up your enthusiasm to continue controlling. With the enthusiasm focus is automatic and feels effortless.

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