Star Wars fans initially adopted 4 May as an unofficial celebration of their beloved franchise, with “May the fourth be with you” riffing on the famous line “May the force be with you”. But it’s now been officially embraced by Lucasfilm and The Walt Disney Company as a special day for annual celebrations.
The story began a long, long time ago, with Star Wars: Episode IV – A New Hope blasting onto cinema screens back in 1977, featuring the now legendary opening crawl setting the scene, accompanied by the classic theme music.
Viewers were instantly captivated and, in the years following, we’ve seen eight more “core” films, spin-off movies, and an abundance of TV series, as well as endless merchandise.
But what does Star Wars have to do with finance? More than you might think. In fact, there are some excellent financial planning lessons we can learn from these cinematic classics. Here are five.
1. Think of your financial adviser as your Jedi master
We might not wield lightsabers or be able to perform the Jedi mind trick. But much like Obi-Wan Kenobi and Yoda, we know our stuff. As Yoda tells Luke Skywalker, “Pass on what you have learned.”
Throughout the initial trilogy, Luke makes the transition from reckless, wide-eyed youth into a powerful Jedi. His mentors were with him all the way, with Yoda encouraging him to continue his training and Obi-Wan later appearing as a spirit guide for Luke.
Having the right people to guide you can make all the difference to your financial planning. And you want the Jedi master equivalent – calm, all-knowing and there exactly when you need them.
If you have any questions or worries, please get in touch, and we can guide you in the right direction.
2. Don’t make the Death Star mistake with your investments
Darth Vader was terrifying, menacing, and the epitome of evil. But he wasn’t very savvy. He created the Death Star, a seemingly impenetrable space station with horrifying capabilities, able to obliterate entire planets with a single shot.
But it had an Achilles’ heel and he didn’t diversify. He decided the Death Star was invincible and it wasn’t. Destroyed by rebel fighters, the Death Star, with all the investment of money, time, and skills taken to create it, was rendered useless.
As the droid C-3PO says to R2-D2: “I suggest a new strategy…”
When you invest, make sure you have a broad enough portfolio to withstand the unexpected. Diversification spreads risk by ensuring you’re investing across asset classes, sectors, and geographical regions. A good financial adviser will help you diversify your investments to mitigate risk in line with your own preferred approach.
3. Think like Yoda you must — slow and steady can reap long-term rewards
Yoda is almost 900 years old, the wisest and most skilful of all the Jedi. His legendary patience and calm are matched by effortless mastery of the Jedi qualities, which he’s developed and honed over his long life. As he says to an impatient Luke: “Adventure. Heh! Excitement. Heh! A Jedi craves not these things.”
This is a great lesson for financial planning. Long-term focus is key, because it’s where you’re more likely to reap the most rewards. Think about slow, steady, constant progress, building over a period of time toward your long-term goal, rather than quick wins and, potentially, equally quick losses.
4. Have the right people around you
A cavalier smuggler and his co-pilot Wookiee, a rebel princess and her Jedi twin brother, and a pair of squabbling droids may not seem the most likely fellowship. But Han Solo and Chewbacca, Leia and Luke, and C-3PO and R2-D2 actually make the perfect team. With guts, loyalty, skills, and technical know-how, they come together to create the ideal foil for the Empire.
You might not be battling an evil Emperor and his minions. But you are battling against unpredictable and powerful market forces. Having the right financial team on your side makes all the difference.
We can’t promise you a Wookiee. But we can promise you a wide range of expertise, with financial planners, paraplanners, and support staff all bringing their unique skills to deliver bespoke advice.
As Lando Calrissian said: “We had each other. That’s how we won.”
5. Use the force (or rather, don’t be guided by emotion)
Fear, hatred, and anger are what fuel the Dark Side, with Darth Vader goading Luke in an attempt to force his negative emotions to overtake his Jedi training in battle.
The financial arena may feel like a scary place to you, and it can be easy to let stress dictate your decision-making. Your financial adviser can help you keep your head, so you avoid emotional and knee-jerk actions that you could later regret.
Yoda said: “Fear is the path to the Dark Side. Fear leads to anger, anger leads to hate, hate leads to suffering.” Avoiding this domino effect of negativity means replacing these emotions with calm composure and reasoned rationality – just like a Jedi.
Get in touch
If you’d like to find out more about how to manage your financial planning like a Jedi, please get in touch. Email us at hello@vwmwealth.com or call us on 0141 229 4004.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
