by Bruce Jenks (Financial Adviser)
A well-known Cherokee legend tells of a man teaching his grandson about life. The grandfather explains that inside each of us, a terrible fight is occurring between two wolves – one darkly evil, capable of greed, anger, self-pity, and guilt. The other is light and good, joy, peace, serenity, generosity, compassion and faith. As the story goes, the grandson asks, “But which one will win?”
The grandfather replies with a quiet smile, “The one I feed.”
This duality of positivity and negativity is an interesting concept. The ‘evil’ wolf can also represent fear, which is a powerful motivator. The kinds of reactions fear can bring out may push us to do things we usually would not. An example of this is the flurry to withdraw money from a portfolio when news of market volatility lands. Fear tells might compel you to take the money and run… better the devil you know, as it were. But research and a cooler head tells us that by doing so, we lock in our losses and lose the chance to gain it back (and then some) when the market inevitably starts to turn again.
If we feed only the negative, it is easy to get stuck in a state of fear. If we feed only the positive, we could go too far the other way and risk false confidence that everything will turn out fine without any action on our parts. A balance must be met – realistic, but not bogged down by bad news.
At the end of the day, we are only human. Our instincts are not infallible. Our logic is often driven by our emotions. It is not a bad thing, but it is something we need to be aware of when making decisions around our life and wealth.
Similarly to an article a while back on money scripts, the concept of two wolves allows us to examine our own behaviour to see where it may be hurting us in the long term. Negative emotions and financial behaviours can be hard to shift, but if you are aware of them, that is the first hurdle overcome.
There is another version of the legend:
The old warrior tells his grandson that, “If you choose to only feed the white wolf, the black wolf will hide in every corner and stalk me whenever he sees I am weak or off guard.” The old warrior says, “I do not belittle that animal that is dark as night. Because whether I believe it or not, the black wolf also has many good qualities: determination, tenacity, courage, strategic thinking… Some are virtues that the white wolf lacks. Feeding both lets me take advantage of the best of each. It enhances their best version, identifies their needs and trains me to live in harmony."
The Cherokee legend of the two wolves above imparts a valuable experience about balance and emotional management. That distributing forces intelligently, feeding both wolves, will give us a better life.
We are in extraordinary times. When did we last shut down the world and restart it? We have conflict in Eastern Europe again that affects us all. It is extremely tough economically, there are frustrations. People react and act through a sense of helplessness, as what is happening is bigger than them (us).
If we cannot control what is angering, saddening or weakening us then we can choose to acknowledge that. We can choose to get the very best of what we have, be grateful for those positive things no matter how little they may be. We can choose what actions and plans we put in place to position ourselves in the most robust position we can be. We can choose how we feed the two wolves for a better outcome for ourselves and those we care about.
The Cherokee are an ancient nation of peoples, and this is one other saying I appreciate: “Don’t let yesterday use up too much of today.”
Today, yesterday… if you want to start thinking about tomorrow and your financial roadmap, a chat with a trusted financial adviser is a good place to start.
Bruce Jenks is a Financial Adviser at Stewart Group, a Hawke's Bay and Wellington-based CEFEX certified financial planning and advisory firm. Stewart Group provides personal fiduciary services, Wealth Management, Risk Insurance & KiwiSaver scheme solutions.
The information provided, or any opinions expressed in this article, are of a general nature only and should not be construed or relied on as a recommendation to invest in a financial product or class of financial products. You should seek financial advice specific to your circumstances from an Authorised Financial Adviser before making any financial decisions. A disclosure statement can be obtained free of charge by calling 0800 878 961 or visit our website, www.stewartgroup.co.nz
