The first Olympic games were held in a place called Olympia in Greece in 776 BC. Considered the world's foremost sports competition, it is the path to ultimate glory for a sportsman because he or she must beat the best to come out on top. However, the Olympics is not just about winning or losing, it goes far beyond that. The Olympics represent the values of excellence, respect, and friendship, and we can learn a lot from the Olympic games. In fact, there are valuable personal finance lessons we can learn too. We take a look here.
Goal Setting: Olympic athletes need to set a long-term goal since the games happen once every four years. An athlete can set goals like improving in certain areas of the sport, having a more rigorous fitness regime, and so on, on the way to an Olympic medal. Similarly, in personal finance, it is important to set certain goals like buying a house and saving for kids’ education and retirement. Clarity in goals can provide one with the right direction and motivation.
Discipline And Consistency: We all know Michael Phelps who has more Olympic goals than entire nations put together. He said that he did not miss a single day of training in six years. Just talent does not win you Olympic medals. Discipline and consistency are also very important. For the Olympics, you need to prepare for years together. Similarly, in personal finance, you need to be disciplined when it comes to savings and investments. For example, regular systematic investment plans (SIPs) irrespective of how the markets are performing, can help you build wealth over time.
Coaching And Mentorship: A good sportsman needs a good coach who can evaluate his or her performance, give him or her advice on how to improve their performance, and also help them deal with fitness issues and stress. Similarly, most of us might not be equipped to handle our personal finances on our own, so we need the services of a qualified financial advisor. Such an advisor can help you with your investments, tax planning, and other aspects of personal finance. A good financial advisor (coach) will help you plan in such a way that you can overcome life’s uncertainties and vagaries of the market, and still be on track to achieve your personal finance goals.
Thinking Long-Term: The Olympics happen once every four years. Those who participate in the Olympics train for years, often from a very early age. Similarly in personal finance, it is important to think long-term. For example, when it comes to planning for your retirement, the earlier you start, the better. Since you have time on your side, you can take a higher risk and achieve your retirement goal with ease. Long-term planning is important in any other aspect of personal finance, especially when it comes to planning your goals.
Learning From Mistakes: Sports is all about wins and losses. If an athlete loses a race, he or she will learn from their mistake and try to improve. It is the same in personal finance. One is bound to make mistakes, but one needs to learn from them. If you make a poor investment decision and make losses, it should be a learning lesson so that you do not repeat the same mistake twice.
