Skip to main content

Money Moves: Imagine Playing Your Financial Life like a Chess Game

To say chess is a popular game would be a gross understatement. Chess, for at least 1500 years, has been considered to be not just a game, but a true test of intellect and character. One can learn a great many things about chess that can be applied to one’s life, not the least of which is one’s personal finance. Chess is a game that requires patience, foresight, and an ability to understand your opponent. Much like your personal finance, these qualities are required for you to come out on top in the end. Here are a few things you can take away from playing chess and use to improve your financial life:

Think three moves ahead.

The phrase is synonymous to playing chess but should apply to every aspect of one’s life. Your financial life won’t be improved by being arbitrary. Whether you’re planning on taking out a personal loan or using your credit card, you should always know what these decisions would lead to and how you would deal with those consequences. Managing your money rests a lot on proper planning. Don’t just have a single plan for your finances, have a plan that you will implement after your initial plan has succeeded, and have a series of contingency plans if your initial plan fails. Only by anticipating every possible outcome and being prepared for each of those outcomes can you secure a victory in chess and finance.

Work both sides of your game.

The really great chess players can effectively play both offensively and defensively. Whether it’s using the white pieces or black pieces, an astute player takes advantage of any and every position in the game, whether placed there intentionally or not. The same applies to your personal financial management. Some people are just good at saving and investing their money but can’t seem to find a way to earn more money. Some can earn a lot of money but are unable to properly budget that money. Don’t just be good at making money. Be sure you’re also adept at saving and investing money, even at budgeting money, and managing money. Improve every aspect of your financial game. By attempting to be well rounded, you can identify which areas of your personal financial management style need work and you can definitely improve on those areas.

Know when to sacrifice.

In chess, you’ll sometimes find yourself in situations wherein you need to sacrifice valued pieces in order to achieve desired results. Managing your finances is the same. Sometimes, you’re going to find yourself in predicaments that only a sacrifice can get you out of. Don’t hesitate to make the proper sacrifices if it means a much more important achievement comes to you down the line.

Practice patience.

A well-crafted plan of attack or counterattack fails if a player doesn’t have the patience to wait until the proper time to execute that plan. All good plans rely on proper timing in order to work perfectly. Patience is the key to success in chess and finance. Waiting for your opening, knowing your opportunity will come and ensuring that whatever opportunity to unleash your game plan is not wasted goes a long way in ensuring your success. The same way chess players wonder if “is it the right time to perform castling” or “is it the right time to sacrifice my queen,” when it comes to your finances, always consider timing. Is this the right time to take out a personal loan or should you wait? Is this the right time to use your credit card? Always practice patience, and you’ll see the right time come.

Know how to maximise your resources.

Sometimes in chess, you’re forced to play at a disadvantage. You’re bound to make mistakes form time to time, and there are occasions where that lead to situations wherein your pieces are outnumbered and your movements are limited. Chess players thrive on control, but also know how to make do with situations when their initial plan doesn’t work. With fewer pieces on the board, they still try to find a way to win.

In your personal financial management, try to maximise your resources, limited as they might seem to you. There’s always a way to win, and it’s up to you to find it. Learn to use whatever you have, be it a single credit card or a meager income. Your financial success isn’t limited with your lack of resources, but rather with what you end up doing with those resources.

Chess and finance are very similar in terms of the need to establish the proper mindset and practice a level of discipline in order to succeed. Look at your money as chess pieces, and your financial life as a chessboard, with debt and other bad things as your opponent. Make the right moves and you’ll be sure to win at the game of finance.


Comments

Popular posts from this blog

Low interest credit cards - how to make them work for you

Credit cards are borrowing instruments, unlike debit cards where you already have the money. Banks are there to make money too. Just like high street stores, they hope to maximise their profits within the rules. So it’s important to understand the basics and find a credit card that’s right for you – you can compare low APR credit cards here . Now you know the rules, let’s find out how to play the game. The financial services industry charges interest on the money that it lends out. Let us assume you borrow £100 on your credit card and keep it for exactly one year before you pay it back. For the purposes of this article, we will assume your loan attracts 8% interest per year, which is the Annual Percentage Rate, or APR for that particular transaction. Practical example

Why it’s important to save for retirement

While retirement may seem far off in the distance for some, financial experts say you’re never too young to begin saving.  In fact, the earlier you calculate your retirement needs and start building your nest egg, the easier it will be to create a viable plan for the future. Many experts advise you begin saving a percentage of your income for retirement as soon as possible, no matter how little the contribution may be, as it’s possible the Social Security benefits millions of people currently depend on may be in jeopardy.

How does a Prepaid Credit Card work?

Can They Really Be a Solution to Avoiding Credit Card Debt? When it comes to plastic, there are a lot of choices out there. Not only do you have the choice of credit card , debit card, or prepaid credit card, but you also get to decide which financial company you want to use as your card provider. Credit cards and debit cards are both risky. Credit cards can help put you deeper into debt, while debit cards give thieves and collectors access to your entire bank account. A growing number of people are finding that prepaid credit cards are becoming the best option. What Are Prepaid Credit Cards? Prepaid credit cards look and act just like a credit or debit card, except you put the money on the card before you make any purchases. You are only allowed to spend as much money as you have pre-loaded on the card, which means that you are not at risk of going into credit card debt from overspending. These cards also keep your money safe, because thieves will be limited to the amount that is on t

What are the Consequences of Overspending in Life?

How overspending can ruin your financial life? With today’s expenses and their prices, it can be very hard not to overspend. Still, that isn’t an excuse to stray out of your budget. You know why? It is because overspending can only lead to more problems than you think. Overspending can affect your whole life. With all the possible consequences, it may jump from one problem to another. Unpaid bills All the excessive shopping with your credit card can cause steep bills at the end of the month. If you keep on using your credit but don’t have enough money to pay for it in the end, then you’re surely in for a huge financial disaster. This will turn out to be missed payments, and missed payments will ruin your credit report. Missing out on payments will get your credit report marked for 7 years or more. And you can’t get rid of them by finishing them off. Credit report Overspending can cause a chain reaction of events. Once you get your bills due to overspending, it’s possible for you to mi

How to Make Your Title Loans Safe and Sound

Although title loans are tagged as risky, innumerable folks still use them for fulfilling their different financial obligations. Therefore, such loans are not completely bad because their significant use despite the risk factor says a lot of their pros. This makes it vital to discuss how these loans should be used so that the risk factor can be minimized up to a great extent. For those who are not aware of, the risk of title loans crop up in the form of consequences when you fail to pay back the loan. With such a failure, you are surely going to lose your car as well as decrease your credit score further.

Online Small Lenders and Grants For Women

In today’s world women are being more and more prominent. They are hard working mothers. Some are even working to support their entire family because they are single moms.  However the financial aspects of being a working women can be traumatic. Depending on the society you live you women may find it that they are not allowed to work or go to school.  Often times they are kept inside their homes to keep the household running smoothly. However most women find that they can be successful outside of the home and inside the home often doing both at the same time. They are working mothers who are often going to school to better themselves while working in the corporate field. For more information click here .