Jeet Kune Do, the way of intercepting fist, was founded by Bruce Lee, undeniably, the greatest martial artist of all time. He was the rising international superstar whose meteoric rise to fame was cut short due to his unexpected death. Luckily, he was able to fulfil his vision, to spread martial arts beyond the borders of China. During his younger years, Bruce studied Wing Chun under Sifu Ip Man and later he explored other forms or martial arts and combined all techniques he learned. He discarded the useless and retained the useful to come up with a nonclassical system that is without form or style and named it Jeet Kune Do.
Nonmartial artists can learn so much by studying Bruce Lee’s principle, and personal finance is no exception. Let us explore these principles:
1. Be like water—Bruce stated that in martial arts, there is no need for rigid or fixed steps but to be able to adapt to any situation. If a person follows fixed step when his opponent is unorthodox, chances are he is more likely to lose. A very good example is Floyd Mayweather Jr. He studies his opponent and makes adjustments so that he will be the one to dictate the rhythm. Bruce said: “Empty your mind, be formless, shapeless, like water. If you put water into a cup, it becomes the cup. You put water into a bottle and it becomes the bottle. You put it in a teapot it becomes the teapot. That water can flow, or it can crash. Be water, my friend.” In personal finance, we all can use the same. In any situation we want, we can always look for instruments that will best serve our needs. We can also adjust our style of investing from time to time. We can be defensive or offensive depending on the goals and situation we are in. There is no such thing as a one instrument that will solve all financial problems.
2. Straight lead—Bruce stated, “The leading straight punch is the backbone of all punching in JKD.” The strike is not only the fastest punch in JKD, but also the most accurate. Related to personal finance, speed is of the essence. Why? We all know that whether in insuring one’s self or investing money, time is the major element. Every delay results in an irreversible loss in the future. By putting speed in the decision on valid information, a person can most likely and accurately meet his goals.
3. Nontelegraphed punch—Bruce felt that explosive attacks with no telegraphing signs of intention were best. By catching the opponent off-guard and throwing them off their balance, they will be vulnerable and unable to defend against further attacks. The idea behind this is the aim to give the opponent no time to react.” This is very applicable to those scammers who are out to get your money. Usually people are scammed because scammers see your body language and if you can confuse the scammers by your nontelegraphed punch, you can turn the table around.
4. Parrying and punching—When confronting an incoming attack, rather than blocking it, the attack is parried or deflected, and a counterattack is delivered at the same time, thus minimizing the “time” element and maximizing the “energy” element. Efficiency is gained by utilizing a parry and redirecting the attack. Redirection has two advantages, first that it requires less energy to execute and second that it utilizes the opponent’s energy against them by creating an imbalance. In investing especially in the equities, a lot of investors/traders try to block the attack on their portfolio by cutting losses. Whatever they call it, a loss is still a loss. Newbies can participate in equities by entering managed funds. They can parry the attack of a bear market by leveraging on the effort of the fund managers and leaving them to position the funds for the reversal. The investors need not exert too much effort and can afford to punch back by planning on his next move.
When Bruce began his friendship with Chuck Norris (his opponent in the movie The Return of the Dragon), he had a problem with his kick. He needed a mentor. Chuck had mastered the art of kicking because he cross-trained. Bruce cross-trained in different forms of martial arts and was able to combine them and use them when the situation demands for it. As for our personal finance, it is wise for us to cross-train in different instruments, so that whatever financial situation arises, we will be able to parry, punch, or even kick, in order to achieve our financial goals. For a family man, it is a good idea to cross train with the spouse to share knowledge to each other. In case a fortuitous event arises, the other spouse will not be like a lame duck since he or she can still run the family normally.
Edmund Lao RFP, is a registered financial planner of RFP Philippines. To learn more about personal-financial planning, attend the 54th Registered Financial Planner program from May 28 to July 2. To inquire, e-mail info@rfp.ph or text <name><e-mail> <RFP> at 0917-9689774.)