3 alternative ways to spend your house deposit savings Despite what many people say, you…
Why working smarter not harder is the key to growing your wealth
While a Big Bash match between rivals Sydney Thunder and the Sydney Sixers may be far more exciting to watch than a 5-day test match, there is far more patience, strategy and skill required for test cricket.
I mean, how many games do you play for 5 days with the end result being a draw?
There are two absolute most-have values for test cricketers:
- A long-term approach
The same could be said for successful investors.
A successful investment strategy is one that is planned, strategic, and well-researched.
Yet many investors are often drawn to the risky approaches, the overdramatic headlines, and spend far too much of their time buying and selling shares on the stock market.
I’m here to tell you there’s a simpler way.
A way that involves working smarter, not harder and can save you time, money, and stress.
You can learn everything you need to know from a test match of cricket.
Even if you don’t really understand the nitty-gritty of the unnecessarily lengthy game that is only played in 35+ degree heat, don’t let that stop you.
Developing a successful investment mindset only requires understanding the very, very basics of cricket.
But once you know understand the rules, you’re ready to move forward with confidence and feel like the next Warren Buffett.
4 Investment lessons to learn from Test Cricket
1. Play the long game
Just like a multi-day test match, playing the long game in investing is where you get the results.
If you’re after a short win, investing may not be the right way to do it.
Many people believe that success in investing comes from picking stocks, timing the market and outguessing prices.
While it is possible to get lucky and have a big win in a short amount of time, it’s also very possible to have a big loss.
Depending on luck isn’t a sound strategy which is why the long-term game is the way to approach your investment portfolio.
2. Stay calm and in control
It’s very easy to let your emotions get the better of you and dictate your investment decisions. However, the alternative is to remain realistic and not obsessively check your investments every hour.
Naturally, your investments will have ups and downs.
But it’s important to remember your long-term strategy and stick with it. As long as your strategy is well-informed by an experienced financial adviser, you can be confident in your investment your money is in safe hands for the future.
3. Cover the field
When the other team’s best batter whacks the ball in the exact same direction 10 times in a row, it can be tempting to put all your fielders in the same spot. Unsurprisingly, this isn’t often a strategy you see in cricket and the reason is pretty self-explanatory.
Don’t put all your eggs in one basket.
If you put all your fielders on one half of the field, you will spend all your time chasing missed opportunities.
That’s why diversification is the absolute golden rule of investing. Investing in a range of different asset classes will allow you to avoid taking unnecessary investment risks.
According to moneysmart.gov.au, it is essential to know your risk tolerance before starting to invest.
Your investment risk tolerance will be unique and will also likely be influenced by the life stage you are in as well as your financial goals.
4. Ask the coach
The final and most important step for cricketers is to ask the coach.
For investors, this means asking your financial planner. A financial planner has the knowledge, experience, and ability to help you make smart, informed investment decisions.
A successful investment portfolio can also form a very important part of your retirement plan and help you achieve your ideal retirement lifestyle.
Ready to become a more successful investor?
Seek financial advice in Newcastle from our experienced financial advisers at NFPG. We take pride in helping people to achieve their financial goals now and in retirement.
At NFPG, our Investment Specialists are experienced in building personalised investment strategies that incorporate our evidence-based Investment Philosophy.
We provide financial advice supported by evidence and data so you can be confident in your financial future.
Book your initial complimentary appointment today.
The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group and Sydney Wealth Advisers are subsidiaries of Coastal Advice Group which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.