Welcome to another edition of your newsletter on money lessons. I hope last Friday’s downpour did not negatively impact you all in any way.
Today, I will like to discuss the money and life lessons I learnt from the champions of the recently concluded UEFA Euro 2020 competition. Remember, I had mentioned some time ago that I love football or soccer like the Americans call it.
The Azzurri as they are called were dark horses coming into the competition that had the likes of the Belgium team oozing with talents in all aspects of the game or the French side equally loaded with skilful and talented players.
Unlike these sides, the Italian team had fewer “recognized” players and not that it mattered in the scheme of things to their manager Roberto Mancini or to the eventful outcome of the competition as “The cup went (to) Rome!”
Below are some of the lessons I learnt from the current champions of Europe:
- It takes a team: Like I mentioned earlier, the Azzurris were more of a collective than a side riddled with superstar(s) expected to lead the way like for example Cristiano Ronaldo and the Portuguese side. That meant that every player on the side depended on each other to play their part.
Teamwork or collective effort is also key in our personal finance journey. Every aspect matters. Budgeting is key but is not more important than saving, investing or frugality (where it matters) or collaborating with other investors. Every aspect (or player) is critical in the scheme of things.
- Consistency trumps speed: The Italians were outplayed by the Spanish side in the semi-final and even given a scare by the Austrians but were the best side over the length of the competition.
As in life, there will be times when assets may lose value or rates/yields may make investing uninteresting, the key thing is to remain consistent to your personal finance ethos – whether it is for the long time or profit taking; keep at it. Just remember that wealth creation is a marathon and not a sprint.
- Both attack and defence matter: Previous Italian sides were renowned for their defensive prowess but this side combined its defensive strength with a flair for attacking football.
Similarly in one’s personal finance journey, both risk taking (attacking) and risk avoidance/control (defending) can and should complement each other.
Income/Profit can only be made when we venture to invest or buy that asset. Funds safely tucked away do not earn any interest or income. Nevertheless, we must be intentional or informed when we take these risks as nothing is guaranteed.
- Even when you concede a goal, keep at it: Even when they conceded a goal less than 5 minutes into the final, the Azzurris didn’t break a sweat but kept playing till they equalised and eventually prevailed through penalties.
For many people, a deal gone wrong or a stock gone burst is a sign that investing in stocks or crypto isn’t for them. However, like I mentioned earlier, nothing in guaranteed when investing or risk taking and as such, that should not necessarily be a reason or excuse for shying away from wealth building.We will do well to remember that “fortune favours the brave”.
- Have a game plan even when things aren’t going your way: Many analysts will confirm that in the final game, Italy was tactically superior. The substitutions made by the Italian manager helped his side get better and eventually lift the trophy.
Whilst there is no guarantee that plan A will always work out, there is nothing to be ashamed of in opting for plan B or C or D.
Plan B can come in varying forms – it may mean changing course or choosing a cheaper option of an investment. For instance, if you can’t afford a whole unit of any asset, why not combine resources with a trusted friend or relative.
- Success truly has many fathers (or fans): It is hard to tell or believe from the reaction of the entire nation that Mancini was Italy’s 2nd choice coach. He only got the job because the preferred manager – Carlo Ancelotti declined the offer.
Mancini was the underwhelming choice (in the eyes of the fans) who chose to give it his best shot and now, almost everyone is singing a different tune.
It does not matter the hand you get played, we all can choose to give it our best and trust me, the naysayers will sing a different song when you come out on top.
Please remember that the INEC continuous voter registration exercise is still on going. Kindly encourage as people as possible within your circle to register to vote if they are yet to do so. Also note that lost cards can also be replaced; all you have to do is to visit the INEC website for more details.
Till next week, continue to stay safe and do have a fruitful week.