Apart from being one of the oldest games in the world, chess is known for containing multiple financial truths. So on International Chess Day, we’ll walk you through some money lessons that you can learn from Chess.
Planning, strategy and making all the right moves when things go awry are aspects of winning a chess game. But did you know these principles even apply to your financial game? Here are 6 money lessons from chess to help you make smart financial moves with your money.
Know the rules and up your game
You can’t master the game of chess without learning the rules and tools of the board and a lot of practice. So, if you want to get better, you have to keep at it.
The same goes for your financial health. Know the basics of budgeting, saving, borrowing, earning—this is essential for your overall financial success.
Be on-point with your strategy
Your opening move will never be the same as your endgame, the same goes with your personal finances at every stage of life. Your money game in your 20s will not be the same as what you do when you’re nearing retirement. So, spell out your goals, make a plan, stick to it and prepare to make adjustments along the way.
Play your advantages at every stage of your financial life. As you head toward middle age, since your income has grown, squirrel away a little more to your savings.
Start small and start strong
In chess, even a pawn can convert itself to the mighty queen. When the tiny pawn navigates and negotiates all the enemies and reaches the other end of the board, it can convert itself into the mighty queen.
What’s the lesson? Don’t underestimate the potential of small investments. Just like the insignificant pawn can turn into a significant queen. Small savings, over a period of time, create great wealth and financial freedom.
Opening with a pawn creates a way for the higher-ranking pieces to enter the game. Whether you’re just beginning to build your savings, or you’re dipping into investing, it’s always good to start small. Set aside a small amount each month and stay consistent. The bigger gains follow! That’s the power of compound interest.
See also about: 5 financial investment lessons from a cup of tea
Patience is key
The most defining characteristic of great chess players is patience. The longest chess game lasted over twenty hours and included 269 moves. The best players always know that their best moves require a well-thought-out analysis.
When it comes to your finances, patience pays off. Consider economic conditions when you find a great interest rate on a mortgage. Consider waiting before you sell your assets at too-low prices.
Develop the habit of carefully considering your money moves, that way you’ll steadily advance toward your financial goals.
Keep learning, don’t quit
Even the best in the world tend to misstep sometimes.
Everyone is bound to face a few setbacks as they navigate their financial journey. Sometimes a job loss and economic downturns can temporarily derail best laid financial plans. But regardless of the circumstances, how you respond to obstacles is the key to your comeback.
Well, successful people don’t avoid failure, they learn from it. So, don’t give up just because you busted your budget for one month. It’s ok If you’re behind on retirement savings, consider adjustments to make up for lost ground. Chess masters were also beginners once, so the lessons you learn right now will make you a stronger player in the end.
