Where cricket is religion and the once-naive become legends, India is the pitch where challenges are yorkers, uncertainty is review and cover-drive is the victory. While the ritual of watching matches are sacrosanct and the Indian Premier League is no less than a celebration of the religion, are we religious enough to not just watch, but also learn?
Here are a few pointers that can help you take your financial goals across the boundary with the finesse of a straight-drive.
Renowned franchises like Mumbai Indians are cautious about their horizon. Are you?
Mumbai Indians is perhaps among the most popular teams in the renowned Indian Premier League franchise. Notably, for the team, there has been a significant churn in its players – ten-year-old names like Malinga and Harbhajan have been replaced by the likes of Ishan Kishan, Suryakumar Yadav, Pradeep Sangwan and similar.
When asked about the decision to not retain legacy players, the comment received was that they were looking to build a team with a longer-term perspective, perhaps three years or more instead of a quick-fix.
This is a sheer reflection of how the big boys of India Inc. like Mr. Ambani think. If they can think long-term and beyond the obvious with their investments, why can’t you?
Everything has a cost and a value. Planning is important
Though exciting as a spectator, the IPL auctions are a real test for franchise owners’ value-picking skills. For every decision, there are millions at stake – literally.
The entire setup of having a budget, different requirements and the need to fill every spot on the team is no less than our regular financial life where we need to provide for everything and there are a few spots which can’t be compromised while the available budget is rigid as a rock.
So, what to the big boys of IPL do? Simple, they plan ahead. They think about the kind of players they want, the kind of money they are willing to put behind those spots, do their research for players across categories and then bid in line with the requirements.
This is exactly the same process one can learn about their personal finance and investments. Point number one is that you have a fixed budget, what’s next? Define your goals, decide how much money you would need for it, in how much time and then decide on how much money you must park in what places and for how long to achieve everything on your goal-list.
Discipline and patience is an indispensable virtue of the successful
The IPL of 2015 was a memorable one. Any IPL-loyalist would remember the way Mumbai Indians were beaten up in their first four matches and their name flashing at the bottom of the league table sent a shiver down the spine of every MI-fan then. What followed next was an exemplary display of enthusiasm and form while not losing the golden virtues of patience and discipline. We all know what happened next – the trophy was swinging on the waves of blue jerseys.
Though anecdotal, it has quite a lesson for everyone out there trying to manage their personal finances. In the short run, there can be volatility – stomach-lurching volatility; but once you manage to sit tight and focus on the game with continued patience and discipline you will realize that the knot in your stomach was actually nothing but the feeling you get just when the plane takes off the runway. It may be uncomfortable in the beginning but proceeding with patience and discipline will take your flight to the skies.
The old folks’ tale might be true: Excess of anything is not good.
Just a brief look at the history of IPL seasons would reveal that the winning teams emerged victorious not because of any lone-star, but because of coordinated and collaborative efforts from the entire team. The episode of Sunrisers Hyderabad in the season of 2016 when a not-so-flamboyant, but the prudently constructed team picked the trophy was a glaring reminder of how a concoction of different skill-sets outperforms a heavy yet single skill.
Likewise, for the victory of your investments, it is very important to split your investments across asset categories and funds in line with your goals and expectations. Only when every penny invested has a goal for itself will the entire portfolio move towards achieving your larger financial goal.
Power Play: Get a headstart, while you can.
It is quite typical of every team to try and get the maximum possible headstart during the first six overs of power play. These are perhaps the most important six overs for any team in the twenty-over match– the team is fresh, brimming with energy and have lower obstacles. This is the opportunity to mark the team’s territory farther off in the match.
Similarly, when you are young – having the appetite to invest, the energy and understanding along with low responsibilities and deterrents, it is your power-play period in your quest to financial success. Your early years should be leveraged to gain a headstart in your chase towards the bigger financial success.