3 Important Money Lessons From The Game Of Cricket

1. Don’t bank on a single player 

Impact: A star player might hog the limelight with some match-winning performances, but relying on a single player won’t work in the long-term. Investors too should refrain from placing huge bets on a ‘promising’ sector. 

Tip: Experts advise against focusing on a single sector as it leads to concentration risk. Focusing on sectoral funds can both lift as well as sink your portfolio. To mitigate the risk quotient, you should spread your bets. 

2. Communicate well 

Impact: Lack of communication and poor calls from batting partners can lead to run outs. Not keeping one’s family in the loop on investments, liabilities and insurance can have similar unpleasant consequences. 

Tip: Keep your family members, especially your partner, informed about investments and insurance. This will help them take charge of financial matters if you are in any way incapacitated. 

3. Keep the asking run rate in check 

Impact: Waiting for the slog overs to do the major scoring is a bad strategy. It’s best to start early when it comes to making runs and also when it comes to investing. 

Tip: Late start means investing a lot more to build the same corpus. Early start can help achieve long-term goals such as retirement or children’s higher education relatively easily