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In honor of May 4th (May The Fourth), I gathered some Jedi wisdom for your Personal Finances. I have found 11 inspirational quotes from characters from various Jedi from the Star Wars Universe that could be applied to money lessons.
There are many great quotes in Star Wars. Mostly from the great Master Yoda and his crazy talking that makes him so well-liked. But other Jedi Masters are also generous with wisdom quotes. Most of the quotes do not directly apply to finance. Here are 11 quotes that can apply to your personal finances.
May the Force be with you. Yoda
May the Force be With Your Finances! If you follow these Jedi lessons, you may well become a Jedi Personal Finance Master!
1. Always have strong goals (Yoda)
Do or do not. There is no Try. – Yoda
Your goals should not be to try to do something. Your goals should be to do something. The difference is very important. You should set your mind to do it. You should already believe you will achieve your goal and not try to achieve it.
Trying to do something means there is a risk of failure. Doing something means succeeding. That is not to say you will always succeed. But if you fail, you just have to learn from the failure and improve your next attempt. Do not stop because you fail!
2. Do not time the market (Yoda)
Difficult to see. Always in motion is the future – Yoda
As Yoda tells us, the future is always in motion. There is no way to accurately predict the future. The same is true for the stock market. Trying to predict the stock is a fool’s game.“Much to learn you still have my old padawan. This is just the beginning.” Yoda
This does not mean that we should not invest. This should simply mean that we should rely on the performance of the market rather than rely on the performance of fund managers that will take a large part of the gains.
It has been shown many times that active funds did not beat the market over the long term. On the other, passive funds allow replicating the performance of the market at very low fees.
3. Be Patient (Yoda)
Patience you must have, my young padawan – Yoda
You will not achieve your goals in a single day or even in a single year. Whether your goal is to get out of debt or to reach Financial Independence.
You need to be patient and stay consistent. If your goals are going too slow for your taste, you can try to improve their speed. You could try to save more money towards your goal by cutting some more things you do not really need.
Or you could set yourself some intermediary goals. For instance, if your goal is to get out of debt in two years, you could set monthly goals to eliminate one debt after another. And once you reach the first small goal, you can make the next one more difficult. Such a strategy will make you feel your progress and will make it so you reach your goals faster!
4. Do not let your emotions decide (Luke & Yoda)
Fear is the path to the dark side. Fear leads to anger. Anger leads to hate. Hate leads to suffering. – Yoda
It is a well-known fact in investing that your emotions are your worst enemy. You should try to be as detached as possible when you make decisions.
For instance, investing in cryptocurrencies because you fear missing out on the huge gains achieved by some people is not a good reason to invest. And selling out all your shares because one index lost 10% of its value in a few weeks.
Your overconfidence is your weakness – Luke Skywalker
Fear is not the only emotion that is dangerous. Overconfidence can be highly detrimental to your investments. If the stock market is going very well and you are overconfident, you may invest more than you should. And once the stock market goes down, and it will, you may be left with too little money and forced to sell at the worst time.
You need to base your decisions on research and facts. If you understand your investment and you are confident it will bring over the long-term, then, you should stay invested. If your plan is to invest in broad stock-market indexes, you need to continue investing in a downturn. Mastering your emotions is at the heart of the Think And Grow Rich book.
5. Do not trust everything (Qui Gon Jinn)
The ability to speak does not make you intelligent -Qui Gon Jinn
Just because somebody says something on the internet does not mean it is true. Most people are not accountable on the internet. You should not blindly trust everything you find on a personal finance blog either. Even if it is not the intent of the blogger, some information may have been left out. This information may make the situation very different from yours.
My take is you should not entirely trust everything you find online. That is not to say that you should distrust everything either! Just be careful and be aware that many blogs do not tell the full story.
6. Do not find alibis (Obi-Wan)
Who’s more foolish? The fool or the fool who follows him? – Obi-Wan Kenobi
One thing that many people do is to use alibis to explain why something is not working. For instance, many people will say that they are in debt because of the economy. In some cases, some people have real alibis or excuses for some things. However, in most cases, we can only blame ourselves.
Finding an alibi or excuse to spend too much or being a debt will not solve any issue. We need to realize it is generally our own fault. And once we stop finding alibis, it is much simpler to actually do something about it. Alibis are just a lazy excuse to not do anything to fix the issue.
This quote also applies to follow everything the media says about investing. Just because somebody on TV says you should buy a share of XYZ should not be enough to invest in XYZ! If you do and you lose, you can only blame yourself!
7. There is always something more to learn (Yoda)
Much to learn you still have my old padawan. This is just the beginning. – Yoda
You should always try to learn new things. It is not because you have read ten investment books that you cannot learn more from the eleventh book. Many people make the mistake of being content with what they know.
Even after having learned about investing for about one year, I was still learning many things every single week. And so can you!
I do not think learning is really ever achieved. Scientists never stop learning more and more. The same is true for people who want to improve their finances. The quest for improving one’s personal finance is never over!
8. Believe in yourself (Darth Vader & Yoda)
I find your lack of faith disturbing – Darth Vader
It is very important to be confident in your abilities to reach your goals! You need to believe in yourself.
You fail because you don’t believe – Yoda
Indeed, you will never reach your goals if you do not believe in yourself and are not confident in your abilities to reach them!
It is not an easy task to start believing in yourself of course. You need to start with little tasks and gain confidence over time as you complete your tasks and start believing in yourself. And it is very important to not pay attention to people telling you that you are not going to make it.
9. Pass on your knowledge (Yoda)
Always pass on what you have learned – Yoda
You should not keep everything you are learning to yourself during your money journey. Knowledge should be passed on. A lot of people are not educated for personal finance. You can change that!
I am not saying that everybody should start a money blog! There are many ways to pass your knowledge to other people. You can start talking money with your friends and family for instance. Even teaching your children what you have learned is an awesome start in passing your knowledge.
And do not forget to teach from your mistakes as well as from your successes. I believe you can learn a lot from mistakes! For instance, I have shared my investing mistakes on this blog in the hope that people do not do the same mistakes.
10. Do not take too much risk (Darth Vader)
You are unwise to lower your defenses – Darth Vader
Before you start investing, you should think of your risk tolerance. For instance, how are you doing to react if your investments are losing 30% of their value?
Some people are able to weather a 50% drop without sweating. On the other hand, some people are panicking when they have a paper loss of 10%. It is very important to assess your risk tolerance. Your risk tolerance will define what you should invest in. An extremely risk-tolerant investor could invest only in stocks. But a risk-intolerant person may want to invest less than half in stocks.
Risk tolerance is not only based on age contrary to many popular teachings. It is based on yourself, your income situation and your emergency reserves. Once you have assessed your risk tolerance, you can define your investment portfolio.
Finally, your risk tolerance should not be set in stone. You should review it around once a year to make sure that it still fits your situation.
11. Investment should be boring (Yoda)
Adventure. Excitement. A Jedi craves not these things. – Yoda
When you are investing in a smart way, investing should be boring! It is not full of excitement. You will not make a fortune in two days and lose it all one week after that. Adventures and excitement like this are only good for movies and books.
Smart investors are investing through broad stock market indexes. In fact, you should know you will not beat the market. And therefore, the best next thing is simply to follow the market. By doing this, you will simply have to invest your savings every month into your portfolio of cheap index ETFs. This is boring but this is what makes it work!
You can learn a lot from the Jedi Masters. If you follow Jedi Wisdom and apply it to your personal finances, there is no doubt you will improve it. Therefore, you should use this wisdom to reach your financial goals.
Whether your goal is to become financially independent, get out of debt or save for an awesome vacation, these Jedi lessons are going to go a long way towards helping you achieve your goal! You can now become a Jedi Personal Finance Master!
If you liked Learning Money Lessons from Star Wars, you may like to Learn Money Lessons from Animated Sitcoms.
Which of these Star Wars quotes do you prefer? Do you have another Jedi quotes that could apply to Personal Finance?