5 Financial Planning Lessons From ODI Cricket
The keys to a mighty ODI score are consistency and discipline. Great batting sides keep the ones and twos ticking and keep rotating the strike.
Photo Credit : Shutterstock
As cricket fever grips the country in the wake of the upcoming India – New Zealand World Cup Semi Final match up, it’s worth revisiting some simple but uncanny similarities between a successful ODI innings, and a well-planned Financial Life. Here are five of them to keep in mind.
Without a proper plan, you’ll flounder!
Champion teams spend time in planning and preparation. They have a documented strategy against each opposition bowler, and execute the same with intent and precision. Similarly, they key to a fruitful Financial Life is the plan itself. Sitting down with a qualified Financial Planner and putting together a roadmap towards the achievement of your ideal Financial future is critical.
Well begun is half done
More often than not, the initial phase of a batting innings sets the tone for either a mammoth total or an embarrassing collapse. It’s not necessary to begin hitting sixes from the first ball. The beginning of an innings is all about laying a solid foundation for the pinch hitters to capitalise on later. Similarly, it’s critical to go ahead and make a solid start when it comes to Financial Planning, too. A balanced approach is key, rather than going all out in saving more than what is comfortable or feasible, only to redeem your money later and lose track of your goals in the process!
If you panic, you lose
Unless you intend to park away all your long-term savings into fixed deposits (a very avoidable tactic indeed), you will, at some point or the other, come face to face with the inevitable ups and downs of securities markets. Stock markets may correct sharply or bond yields could rise, leaving your “innings” in disarray for the time being. In such situations, as in ODI cricket, pressing the panic button will only end up triggering a collapse and guaranteeing a defeat! So, when the going gets tricky, keep a cool head and continue to stay focused on your end goal, instead of throwing away your wicket and regretting it later!
You need to be opportunistic
A solid ODI innings is all about capitalising on all the bad deliveries that come your way. These poor deliveries represent vital scoring opportunities that absolutely need to be cashed in on. Similarly, windfall gains such as bonuses, inheritances or stock options vesting, must not be frittered away. They should be used to turbocharge your Financial Plan by allocating them fruitfully towards your goals.
Consistency & Discipline are key
The keys to a mighty ODI score are consistency and discipline. Great batting sides keep the ones and twos ticking and keep rotating the strike. They refuse to let the innings stagnate, even if the opposition bowlers are putting on a strong show. Similarly, Financial Planning is all about consistency and discipline. Things and starting and stopping SIP’s, redeeming moneys allocated for critical long term goals for the sake of fulfilling short term needs, taking on unnecessary risks through speculation and leverage, or not stepping up your savings when your income increase – these are all approaches that will ultimately dampen your Financial Goals.