Thousands of fans were seen in England and Wales stadiums to watch the recent cricket World Cup matches. Millions of viewers enjoyed it on TV. Cricket is such a game that you can achieve your financial goals easily by adopting six ways in financial planning.
- Selection of the right team For success in the long run, it is important for all the 11 players to perform better. If you look at the performances of West Indies and Australia teams in the second half of the 1980s or the late 1990s, each player’s contribution is different. Similarly, to get financial goals, it is important to have the right asset allocation in your portfolio. In other asset classes including equity, debt, real estate, gold, proper investment can give good returns over long periods.
- To create the right strategy, it is also important to make the right strategy of playing cricket. In this, analyzing the opposition team is to prepare the match according to pitch and circumstances. According to this, every player has to play his role. Similarly, making the right strategy and investing according to it is also important.
- The aggressive start to the big goal, the team has to start off aggressively to achieve the big goal. If the run rate does not increase, then the team can come under pressure and miss the target. Similarly, if you have to deposit a large amount for retirement, you have to start aggressively. It has to take a little risk and invest in equities as stocks have the potential to overcome inflation in the long run.
- Playing according to the situation When some wickets fall in the beginning of the innings, then the batsman’s pitch needs to remain patient with patience. It is better to take one or two runs instead of four fours. Similarly, in personal finance, you should also take steps according to the situation. If you are looking for an alternative to a bank savings account, you can choose liquid funds.
- Every player has his own importance to the injury of a player or the performance is not good, then the team has to replace him with another qualified player. Similarly, if an asset class is not performing well, then instead of investing in another good asset class, it should be invested.
- Avoid risk when goals are close, taking risks in this situation can cause defeat for both teams. When the corpus of retirement is close to achieving, then the investment should be reduced by decreasing the investment from equity. With this, you can save the retirement corpus from the ups and downs of the market.
These are the private views of the author. Dainik Bhaskar will not be responsible for the loss of investment on the basis of these.