By Joey Casolaro, Analyst
When it comes to investing and managing your finances, many people wouldn’t think that the skills and mindset needed for success would be similar to the skills and attitude necessary for success with martial arts. However, I have come to realize that investing and practicing Brazilian Jiu-Jitsu, a type of Mixed Martial Art (MMA), have much more in common than one would think. Both require similar skills and disciplines to be successful.
One of the most important keys to success in both investing and MMA is developing and having discipline. As defined in the dictionary, discipline is “control gained by enforcing obedience or order, and training that corrects, molds, or perfects the mental faculties or moral character.” Discipline not to get confused with motivation does not come and go and instead is something that lives inside of you and is a lifelong lifestyle. When it comes to investing, it is crucial to have the discipline to stick with your investment plan, especially when markets are volatile and media sources are predicting and portraying the worst possible outcomes. It also takes discipline to save and invest money for something so far out in the future (like retirement) when instead, you could be spending that money on a variety of different things that you would be able to enjoy today.
So how does discipline tie into MMA, more specifically, Brazilian Jit Jitsu? With Brazilian Jit Jitsu, the main goal is to make your opponent surrender (also known as “tapping out”) by either isolating a limb and bending it in a way that will cause it to break/dislocate or by cutting oxygen from going to the brain by performing a choke. When first starting in BJJ, there is a very steep learning curve, and so for the first 1 – 2 years, you are constantly tapping out and most likely walking away from each class with a few bruises. Having no prior knowledge of MMA, I experienced this firsthand and didn’t realize how frustrating it could be, especially when someone 40 pounds lighter than you is making you tap. I quickly realized, however, just like with investing, this is a long-term game that, to be successful, will take time and discipline. Having that in the back of my mind, I still show up to class every week and focus on learning one new thing each lesson. By taking this approach, although I may not realize it, I am getting better every week as time goes on, and the new things I am learning every week are building on top of each other, similar to how compound interest works with investing.
Another characteristic that goes hand in hand with investing and MMA is remaining calm, especially in chaotic situations. Much of the training in Brazilian Jit Jitsu includes the art of remaining calm in a very awkward or uncomfortable position. With investing, it’s not always going to be a comfortable ride, and the decisions you make during high-pressure chaotic times (ex. the past Covid-19 market drawdown from last March) will have a long-lasting impact down the road.
Overall, although investing and MMA may seem very different, they share some of the same skills needed to have the most success. By having the discipline of a long-term mindset and sticking to your plan of action, even when things don’t look bright, you will increase your probability of success and be confident you are on the right track to achieve your goals.
Author’s Bio
Joey Casolaro is a CERTIFIED FINANCIAL PLANNER™ at HIGHLAND Financial Advisors, a Fee-Only fiduciary wealth advisory firm that offers comprehensive financial planning, retirement planning, and investment management. Joey graduated from the University of South Florida with a bachelor’s degree in personal finance and successfully passed the CFP national exam in 2021. Joey enjoys working out, spending time outdoors, and hanging out with family and friends in his free time.