Investing Money – Like A Test Match or a T20 of Cricket?
‘Your life is changed forever’ were the words Indian Cricket legend Sourav Ganguly told Brendon McCullum after he scored a record-shattering 158* out of 73 balls in the first-ever IPL match in 2008. It remains the second-highest score in the decade-plus in the long history of the tournament. Ganguly was right in more ways than one - The Indian Premier League changed India's favourite sport forever. The Gentleman's game had a spunky makeover. When Indians first fell in love with the sport, it demanded their attention for 5 days for every match. Then with the dawn of ODI, it became 9 hours and fell even to a more convenient time span of 3 hours.
However, true followers and pundits of the sport vouch for the fact that while T20 is a game for the boys, real men play Test Cricket - a sport that has no parallel in the world when it comes to testing a man inside out.
It is also true for your money. If you really value your money, then you must invest it in true Test Cricket style and not the T20 way. Let us show you why.
You’ll Make Runs If You Stay on the Wicket
- Test Cricket at the core, is a game of patience and perseverance and requires virtues totally different from T20 cricket. While the goal in T20 is to make the most runs possible in the least number of balls (and provide maximum entertainment), Test Cricket focuses on longevity and stability.
- Similarly, when it comes to your money, don't treat it as entertainment and stop looking for instant gratification. History has shown us that most get-rich-quick schemes inevitably turn out to be scams. This blog will tell you how a simple secretary turned her $180 investment into more than $7M by simply waiting at the crease long enough.
Discipline over Glamour
- A few reckless shots may win you a few quick runs or even a match in T20 but that's a fluke. You may find many players who had fantastic knocks in the IPL but never managed to play another season again.
- However, in Test cricket, there is no place for fluke. You cannot rely on a few lucky shots but only on disciplined performance every minute, hour, and day.
- In the same way, you cannot leave your money to chance and fluke. Keep saving and investing your money on a consistent basis and wait patiently on the crease to see it grow. Investing even little amounts for a long period can reap unimaginable benefits.
There’s always a Second Chance
- In T20, once you are out, you've had your chance. However, Test cricket is one of the very few games in the world that gives you a second chance. Who can forget the historic Eden Garden test match between India and Australia in 2001 where India emerged from the jaws of defeat to claim one of the most resilient victories in sports history?
- Markets can be extremely volatile but you cannot let a bad day impact your chance of becoming wealthy. Don't get disillusioned with a bad day in the market. Remember, you are here for the long term and get ready to start your second innings.
You Can’t Hit a Six on Every Ball
- Who can forget Yuvraj Singh's six 6s in the inaugural T20 World Cup? It has only happened 9 times in professional cricket that someone has hit six 6s in an over. Even the greatest investors don't make money from all their investments and chances are, so won't you!
- That's why it is important that you don't place all your money in a single basket but diversify your investment portfolio. Do read our blog here to understand more about this fundamental investment principle.
Mindset is More Important Than Skills
- Test Cricket is not as much a test of your skill as much as it is of your character. Playing 5 days of cricket can take a huge toll on your mind and body but only the ones who cultivate the right mindset, make it through and become true champions of the game.
- Similarly, great Investments don't have much to do with your knowledge of finance as much as it does with cultivating the right mindset towards money. Even a simple Janitor could make $8M by cultivating the right attitude. It's not me, the great book The Psychology of Money says that.
It’s ok to Leave a Few Balls
- With time you may tend to get distracted by market trends and fads that will tempt you to divert all your money towards them. More recently, a lot of people have jumped onto the cryptocurrency bandwagon and lost their money without fully evaluating and understanding the trend by simply investing based on what they hear.
With this, we wish your investment journey to resemble more like Test cricket legend Rahul Dravid's career than any of the current T20 champions.