World Cups Serve as Wonderful Life Markers!

As I begin to write this, the cricket world cup 2015 final is scheduled to begin in an hour. World cups occur once in four years which can be a mini lifetime!  Each cricket and football world cup, I ask myself, where was I the last time it was played? Where will I be the next time it will be played?

'Where' here refers to my life as a whole and not just my fiscal health.  If I feel happy during a world cup, I am almost certain that the law of averages will strike and that I will be sad during the next event. If I feel sad during a world cup, I am also most certain that the law of averages will fail and that I will continue to remain sad come the next event.

Such is the level of my optimism as regular readers will be aware.  While I cannot comment personal definitions of happy and sad, this post is to urge you (and me) to evaluate your current fiscal health, compare it to what it was four years ago when Dhoni's men lifted the trophy, list a set of milestones that need to crossed before the 2019 Cricket world cup.

For me, the period between 2011 and 2015 world cups have been a period of consolidation. I had term insurance, health insurance and emergency funds in place just after the 2007 Cricket world cup. So it was a matter of keeping my head down, ignoring the noise and invest with discipline.  So far, so good.

If you are just beginning to take control of your finances here are list of milestone suggestions for you to work with and adapt as per your personal situation:Steps for Financial fort

Steps for financial fortification (life, health, accident insurances + emergency fund) are emergency actions and are independent of when World cups arrive.

  1. If you are not investing as much as you should for your long-term financial goals (use a financial plan creator to find out) then try to reduce this gap as much as possible by 2019.
  2. If you are servicing a home loan EMI, think twice about pre-closing it asap and achieving the above.
  3. Learning to balance investments with EMI is an important step in of itself.
  4. Many tend to believe that investment deprive them of enjoying 'today'. Learning to balance fun with investment and feeling comfortable about it can be important milestone. This is something I have managed to do well since the last WC.
  5. Aim to increase your net worth as much as possible. Purchasing power grows with time but so should your net worth.  Your net worth target can be equal to term life cover.  If your net worth exceeds your life cover, you don't need to worry if the claim on your term cover will be honored or not.  I managed to achieve this milestone before WC 2015.  Note for those who are planning to buy a term cover:  Do not work think the problem. Get a policy from any insurer you like, be honest while applying and aim to increase your net worth. A few years later, the importance of your life insurance policy will diminish and you can rest easy.
  6. Aim for an investment-only four years. No redemption from your investments except for serious unexpected expenses.
  7. If you are someone who is lazy, irregular and happy go lucky, resolve to MDBSC* until the next World cup. If you can pull that off, it would be a great achievement.
  8. Aim to track your investing schedule.
  9. Aim to track your net portfolio return and learn how to calmly review your portfolio

That is as far as my thinking takes me. Let us hope our fiscal health improves and stay fit over the next four years. If you are aiming for financial freedom, here is hoping you achieve it before the next world cup final.

Here is hoping New Zealand wins this one!

Here is hoping Martin Crowe lives to see this years IPL final (for a start).

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11 thoughts on “World Cups Serve as Wonderful Life Markers!

  1. Rajanikant Gajjar

    sometimes I feel that people just ignore personal finance details ,just to show off that they are not bothered & ,they have more,,more, than enough.It is presumed by this class that only if you are not earning enough ,you need to bother for this boring domain of personal finance.I agree that such views should not deter us from doing the right,nor does it affect my beliefs in personal finance either.But is my observation right?Is it a reason why some avoid to develop better understanding in this knowledge domain? do pen your ideas.

    Reply
  2. Rajanikant Gajjar

    sometimes I feel that people just ignore personal finance details ,just to show off that they are not bothered & ,they have more,,more, than enough.It is presumed by this class that only if you are not earning enough ,you need to bother for this boring domain of personal finance.I agree that such views should not deter us from doing the right,nor does it affect my beliefs in personal finance either.But is my observation right?Is it a reason why some avoid to develop better understanding in this knowledge domain? do pen your ideas.

    Reply
  3. Jayadeep Purushothaman

    Indeed - but I keep the football WC marker than the cricket one though the 1983 one was an exception! The thing I remember is the 1994 WC - flush with money from my first overseas trip, bought a bike, TV, refrigerator, microwave oven 🙂 In addition to the truck load of stuff from the US. Even though my savings rate was poor compared to my peers, there was sufficient money to buy most of the stuff! Good thing is that I am still holding on to that Fridge and Owen and didn't replace the TV when it died. Financial discipline came a bit late - a desire to retire early was got me into the act!

    The last one was also a memorable one because I watched it with my mother's Dog(and it was her TV since I dont have one) - he got excited because I took him for long walks after the early morning matches - so he knew exactly when the matches end! And that turned out to be his last one - he came to us before the 2002 WC from somewhere, his mom dumped him with us!

    Reply

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