The simplest ways to make the best of financial lessons from Olympics

Every four years, the summer Olympics brings together thousands of athletes from around the world to compete in a global arena of sports and sportsmanship and athletic excellence too, where they can test and exceed their limits, where they break records and set new ones. More than 11000 athletes from 206 countries and states are participating in the Tokyo Olympic 2020. The international multisport event will indeed have the world holding its breath, watching who would be declared as champion/s and who can retain or bring the gold, silver, or bronze medals for their countries.

While everyone is cheering for their players, a deep analysis reveals several crucial money and investment lessons imparted by the mother of all sporting events. Let’s understand some money, financial, and investment lessons one can learn from the Olympic games.

Know where you start from:

Before starting training for the Olympic games, aspiring Olympic athletes will undergo thorough tests of their physical conditions along with their current game scenario to achieve their goal.

In the case of investments, one has to do the same thing with their finances. Track your income and expenses by going through the last few month’s bank statements and credit card statements. Create your budget by prioritizing your payments. Fix your financial goals and plan your investment allocation.

Take professional help:

If we compare the investment with athletes competing in Olympic games. We can find, they are trained and guided by their respective coaches. Even the most assured athletes sometimes don’t qualify on their own. Coaches play an integral role in their success. Coaches not only help but guide the athletes to overcome injuries and downfalls and provide them valuable inputs which help them to achieve the goal.

Professionals play the same role as coaches in the investment world. They understand your requirements, risk capacity and guide you accordingly. Their guidance can make a significant difference to your wealth creation journey in the long run and helps you avoid pitfalls that can jeopardize your plans. They aid you in understanding the different aspects of saving and investment and help you make prudent decisions.

Learn from Mistakes:

When athletes fail to fulfill their performances and expectations in the Olympics, they analyze their performance along with their coach, for where it went wrong. Several stories of the athletes falling at the final step of a game only emerge stronger the next time. They arise by learning from their mistakes and ensuring not repeating them in the performances the next time. This is one of the crucial financial lessons we should learn from the Olympic games. You must learn from your mistakes and ensure not to repeat them. Because “if you do not analyze it, then you cannot eliminate it and improve your decisions.”

When you go wrong in the world of investment, admit it, understand it and then try to get rectify it to avoid losses in the future.

Start with small:

The athletes who are playing today and winning medals in the Olympics also started their journey from small competitions. Good coaches trained their athletes with small steps first. Because, if they try to take on too much too soon, they will never reach their goals. Instead of that, steady and consistent efforts with small things will make a big difference one day.

The same is true for finance. For example, if you try to save 10% from 5% overnight, it will mess up your financial planning, but instead of that, you try to keep 1% more every year, then it will double your rate of saving in just the next five years. Also, more saving is possible for you without too much pressure.

Think Long Term:

Every athlete in the Olympic games is expected to be trained for 7-8 years before the Olympics to qualify the same. They work hard on their physical and mental health, developing their game with changing scenarios and making new strategies from time to time to beat their competitors and win the game.

Similarly, it is necessary to have a long-term financial plan to reach your goals and concrete steps you can take now. Your long-term financial plan will give you a clear picture of how much you need to save for your long-term goals, such as retirement or a child’s education. Your current budgeting and saving tell you what you need to do every day to keep your saving and investment on track.

Stay Disciplined:

Athletes are known for the hard work they put in. Staying in the good physical condition and aiming for constant improvement requires immense discipline. They remain committed and focused on their goals.

Similarly, you need to plan and focus on your financial goals and stay disciplined to achieve them. You need to carry the will to do what is necessary to achieve the financial future that you dreamed of. Achieving financial success is very similar to achieving physical fitness success. It results from a lot of very disciplined small decisions that may seem insignificant in the beginning but, over time, add immensely to significant results.

The motto of the Olympic game is “Citius, Altius, Fortius -Community,” which means that “Faster, Higher, Stronger -Together. “Apply this Olympic motto in personal financial life. Be Fast in taking action about your money, aim and push yourself for higher objectives while earning money, Build a strong portfolio to achieve your goals in life and we are here to help you to achieve your financial goals. Let’s do it together !!!

Wishing great success for all the athletes in Tokyo Olympic 2020, and let’s enjoy this earth’s most fabulous sport event.

Happy Investing!