DURING the onset of Covid 19 and lockdown in March last year, two-wheeled vehicle usage surged. Logistics firms provided the needed delivery services by connecting users with drivers on mobile and web applications.
A lot of employees displaced by the pandemic found an alternative and better source of income via the delivery service industry. In the past, the motorcycle has been linked to crimes like theft and assassination, especially by criminals riding in tandem. The pandemic gave the motorcycle the new image it needed the most.
There are a lot of motorcycles on the road now due to its affordability and ease of travel. Due to its design, the motorcycle can traverse roads even with heavy traffic. The ease of riding one has its risk in terms of safety.
In an article by Michigan Auto Law, motorcyclists account for 14 percent of all accidents and are also 28-times more likely to die than car drivers and passengers when involved in a crash. More than 80 percent of crashes result in injury or death.
Compared to a car with four wheels, a motorcycle is unstable as one would fall over without a kickstand. But when running, the motorcycle doesn’t need the kickstand anymore and will be stable while in motion.
These are all because of the principle of gyroscope. Whenever the rotor of a gyroscope is spun, it tends to continue moving in the same direction. When a motorcycle starts, the rear wheel turns into a gyroscope and the force created by the wheel gives it stability and helps keep it upright. The introduction of an external and unbalanced force like a collision from any side, the gyroscopic function stops. The result will be catastrophic.
The behavior of the driver is also a major factor as some drivers tend to feel invincible and overconfident, especially when overtaking other vehicles.
Some drivers also disregard traffic rules and forget they are still mortals whose life can be taken away with just one mistake. A driver’s behavior results to accidents.
By observing the motorcycle from behind, one can see the wheel touching the ground. We can mark an imaginary dot at the point of contact. Then consider the seat, take the edges at both ends and mark them with two imaginary dots. Connect the three dots and the result is a triangle. In Trigonometry, three points determine a triangle. In Physics, the triangle is the sturdiest and most stable structure.
The problem here is that the triangle is inverted. It will be as if the motorcycle is standing on tiptoe. Just like a human being, one cannot stand on tiptoe and risks falling. That explains why a motorcycle has a kickstand. An inverted triangle may be sturdy but cannot stand on its own because it needs a base to stand.
With regards to personal financial planning, isn’t it evident a lot of people are similar to motorcyclists? Their financial triangle is inverted and cannot stand on its own. A healthy financial triangle should have its base at the bottom.
Logically, it pays to cover the risks so that when the risks become real, the financial loss will not be too much of an impact. A proper triangle should have a building block starting with proper insurance coverage to cover all of life’s risks. Then as one aims higher, he can now go for more complex financial instruments for his long-term needs.
If one follows the inverted triangle, then he would have no insurance but lots of investments. An uninsured person would then be similar to a motorcyclist where a wrong behavior will result to a catastrophic result. Sound financial management will always require an individual to get as much protection as possible.
By minimizing risks, an individual can guarantee himself of a more stable financial condition as if he were driving a 4-wheeled vehicle.
Always remember, when dealing with your personal finance, don’t be a motorcycle driver.
Edmund Lao is a registered financial planner of RFP Philippines. To learn more about personal-financial planning, attend the 93rd RFP program in January 2022. To inquire, e-mail info@rfp.ph or text at 0917-6248110.