Why Time Pressure Can Cost You a Fortune

Why Time Pressure Can Cost You a Fortune

Grandmaster Garry Kasparov gave Grandmaster Susan Polgar’s chess team a good tip for dealing with time pressure when he told them, “Always keep ten extra minutes on the clock, or you will end up making rushed decisions.” When you feel pressured by time, it’s easy to make a move that you may later regret. Time pressure can make you feel cornered and desperate, and you may end up moving randomly, feeling accomplished as long as you did something. Take time to make balanced decisions The effects of time pressure are not only felt on the chessboard, but can also be felt in your financial life. For example, pressure to buy/sell a particular investment immediately so you “don’t miss out on a great opportunity” may cause you to act without thinking. Before you make any financial move, you must decide if it is really the best move for you at this time. Tips for minimizing time pressure You can limit time pressure in your financial life by using time more effectively. Save time by paying your bills online or through an automatic payment system. Automate your savings so that you always pay yourself first. This way, you know that it’s done. Organize your time so that you use it productively. Unlike your investments, if you lose time, you can’t make it back. Create a daily calendar, scheduling your tasks to make sure you accomplish the most important things first. When you build your plan, remember to add those ten extra minutes to cover the unexpected things that may cause you to make a rushed decision (remember Kasparov’s advice above?). Efficiency,... Click for more
This is Why Your Child Can Learn to be a Strong Chess Player and a Great Investor

This is Why Your Child Can Learn to be a Strong Chess Player and a Great Investor

Some of the world’s best chess players learned how to play when they were very young. The youngest person so far to become a grandmaster is Sergey Karjakin of Ukraine, who won the title at the age of 12 in 2002. In the same way that your child can become a good chess player if he learns the game at a young age, he can also become good at investing and managing his money if he begins learning basic financial concepts when he is very small. Why? What makes a child a strong chess player? You don’t have to be a genius to learn to play chess. Anyone with enough practice and skills can learn to play a good game of chess. However, a young child can absorb the necessary techniques and skills quicker than someone older, whose habits and mindset are already ingrained. Children may also be more enthusiastic about challenges and winning games than adults, giving them the push to learn more. If you give your child chess instruction at a very young age, what will happen? If he enjoys playing chess and develops his abilities, he may become a chess grandmaster. But even if he doesn’t play in chess tournaments or win any prizes, he will develop strategic thinking skills that will benefit him later on in life, whether in the classroom, at work, or in his personal life. The same idea applies to finance In the same way that a child can pick up chess skills more easily than an older person, it is easier to learn positive financial habits when still young rather than... Click for more
Here are the Steps to Success in Chess and Investing

Here are the Steps to Success in Chess and Investing

When you play chess, you need to take small steps to success rather than making grandiose moves or waiting for your opponent’s blatant blunders. A good chess player builds his defensive and offensive fortress slowly, accumulating small advantages wherever possible. The same idea applies to finance. Since it’s unlikely that you will win enough money in the lottery to support you forever, you’ll need to accrue money in reasonable, steady amounts. Over time, a collection of seemingly trivial sums adds up. The book Rich As A King: How the Wisdom of Chess Can Make You a Grandmaster of Investing suggests the following small steps to help you build your nest egg. (To watch a 3-minute video about this, click here.): Regular savings. Squirrel away $5 per day, and put it into a stock mutual fund monthly or quarterly over twenty years. If you net 6% per year on that pool of money, you’ll end up with over $67,000. (If you can save even more, great!) Lower fees and expenses. Look for ways to reduce small, recurring cash outlays. You could transfer your banking relationship to a lower-priced firm (saving $400 per year), pay off your credit card every month (or better yet, switch to a debit card) and save $2,000 per year in interest payments, and renegotiate your cable and cell phone bills (save $30 per month). Examine your budget to find other possible savings routes. Implementing these alone would allow you to sock away $3,800 every year. Get a better salary or find a second income. Could you find a job with a better salary, or perhaps work... Click for more
Why Learning to Play Chess Can Make You a Better Investor

Why Learning to Play Chess Can Make You a Better Investor

Today, more and more schools around the world are teaching children how to play chess. But you don’t have to confine your child’s chess lessons to the classroom. If you want your child to learn to play chess, sign up for a free copy of a Chess Teaching Guide for Teachers and Parents by Grandmaster Susan Polgar. What are the benefits of playing chess? Playing chess can help you improve your analytical thinking skills, confidence, and overall health. Murray Thompson, of Flinders University in Australia, carried out a study on whether playing chess improves scholastic achievements, measured by an increase in IQ levels. He concluded that IQ increased as a result of playing chess due to the concentration and logical thinking that players use when planning and making their moves. Several studies conducted among schoolchildren found that children who learn chess in school develop strong verbal, intellectual, and numerical abilities. For this reason, countries such as Armenia, Norway, and Spain teach chess as a compulsory school subject. Chess in the Schools teaches inner city public school students how to play chess as a means to improve their academic performance and aspire to better lives.  (To watch a video of an interview with the chair emeritus of Chess in the Schools, Lewis Cullman, click here.) Another study, published in The New England Journal of Medicine, found that when people 75+ played chess and other intellectually stimulating games, they were less likely to develop dementia than their non-game-playing peers. Chess can also teach financial skills Apart from all of the intellectual benefits that chess provides, you can also apply chess logic... Click for more
Does a Budget Tracker Really Help Your Bottom Line?

Does a Budget Tracker Really Help Your Bottom Line?

The way you play chess can shed light on how you manage your money. If you are a careful chess player and keep track of your moves, you might find a budgeting tracker a useful tool. In chess, you have a set number of pieces. In order to win, you need to use each piece in the most efficient way that you can. Rather than randomly moving around the board, you need to plan your moves based on the pieces you have available and where they are in relation to your opponent’s pieces. Similarly, when it comes to your monthly budget, you need to look at each dollar you have and use it most efficiently. If you don’t use what you have wisely, you may be left short before you get your next paycheck. If you don’t follow a budget, you won’t know where your money goes. This is why a budget tracker is extremely helpful. It allows you to become organized and methodical with your spending. The best budget trackers help you monitor your expenses, categorize them, and break them down so that you can plan better where to spend your money. Don’t let budgeting intimidate you Sometimes people feel overwhelmed when they first start tracking their expenses. Watching the list of categories where you spend money grow as you go through the month can be quite intimidating. Don’t let this scare you. Once you know exactly where your money is going, you will have a better idea of what you could cut. Budgeting is one of the most efficient ways to make the best use of your... Click for more
The Real Reason to be Financially Optimistic – Rich As A King Episode 131

The Real Reason to be Financially Optimistic – Rich As A King Episode 131

Can you afford to be financially optimistic in today’s volatile market? Susan Polgar’s stories about how she became a chess grandmaster are an inspiring illustration of how optimism can can pave the path to success. Find out why a positive outlook is one of the most useful tools for success, in chess, investing, and in life in... Click for more