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Money management: 7 lessons from IPL
Even you can make crores just like the star cricketers by taking these financial planning lessons from the Indian Premier League.
They say cricket is a religion in India, and ever since the twenty-twenty format made an entrance in the cricket world, cricket has never been the same. But watching IPL matches is not just about savouring the game and getting entertained. If you play close attention, you will see that there are various money management lessons you can learn from IPL T20 too!
If you cannot fathom how cricket is related to making money apart from the fact that cricket stars make tons of it, let us help you out in deciphering what you can learn about financial planning from the IPL format.
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The author is a credit expert with 10 years of experience in personal finance and consumer banking industry and another 7 years in credit bureau sector. Rajiv was instrumental in setting up India's first credit bureau, Credit Information Bureau (India) Limited (CIBIL). He has also worked with Citibank, Canara Bank, HDFC Bank, IDBI Bank and Experian in various capacities.
Start early to accumulate wealth
In the T-20 format, the players are always in the pursuit to either garner maximum runs or take the maximum number of wickets in the first few overs.
This gives them an early psychological advantage in the game.
Similarly, you must invest in a planned manner early in life, so that you the principle of compounding can help you accumulate wealth over the years.
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Prepare for the unexpected
T-20 is a game where players must be prepared all the time for unexpected situations that can either spring positive or negative surprises for them.
Similarly, when it comes to your financial planning, you must be prepared for unexpected situations that are beyond your control.
For instance things such as a macroeconomic crisis is something that you will be able to do nothing about.
Therefore, you must keep yourself prepared for such situations by diversifying your portfolio across all asset classes depending on your risk tolerance.
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Consider the strategic time out
In the T-20 format, a strategic break has been incorporated midway into the game.
In this break, the team asking for strategic time out can put their heads together and decide what is working or not working for them.
Taking inspiration from this, you must take time off to review your portfolio at regular intervals and see if your investments are working towards achieving your financial goals.
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Seek advice of a coach
On an IPL team, there is a whole host of inexperienced actors who may be good but are not familiar with what needs to be managed to accomplish success on the field while facing players of professional gauge.
This is true of life as well as finances.
You may have an innate sense of investing, but may not have adequate knowledge of all investment avenues.
It is therefore best to seek advice of a financial planner who will make your money work for you.
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Cultivate and maintain a winning attitude
For any player, who is a part of IPL, a winning attitude is a must.
Only when each player of the team believes that he will do his best will the team win the match.
This is true of your financial goals too.
You must have the confidence to invest in a regular and discerning manner and believe that all your investments will help accumulate wealth for you.
So, you see, even a game of cricket in an entertaining format can teach you a thing or two about better money management.
As you enjoy the ongoing season of the IPL, make certain you keep these simple lessons in mind as well!