With memories of the World Cup still fresh in mind, we couldn’t help but think of lessons that this tournament reminded us about how to manage our personal finances.Some great pointers which can make an impact on how you manage your personal finances.
1.Waka Waka : Shakira’s anthemic song is actually a new version of an old Cameroonian song titled Tsamina. The words Waka Waka translate in English to “do it – get the task done”
When it comes to personal finance, inertia is the worst kind of habit. Postponing financial decisions is one major behavior that is bound to hurt .You always need to have the “Get it done attitude”.
2.Past performance is no guide to future performance:
Two of the worst performing teams in this World Cup were France and Italy. For those of you who don’t remember, it was these very teams that contested the 2006 World Cup finals, with Italy the ultimate winner.
The stock markets are very similar. Past performance is no guide to future performance in the markets.
3.Hype and underperformance :
Many players came into the tournament surrounded by a lot of hype. Ronaldo, Rooney, Kaka and Messi were the pre-ordained stars of the tournament. They were expected to set the competition alight.
In the investment world as well, there are times when there is a lot of hype surrounding certain sectors or stocks. History has shown that these are the areas that inevitably end up underperforming.
4.Background noise :
Right from the first match of the tournamet, the buzzing sound of thousands of vuvuzelas was never far away.
The stock market is also full of noise. Minute by minute reporting of every tick up or down of stock prices hardly has any bearing on the long-term operating fundamentals of the business. Yet, every small move is made into a big deal by different media.
source : reuters
photo :www.photos8.com
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