How to Win in Chess… and in Personal Finance

How to Win in Chess… and in Personal Finance

What makes a player win in chess? Is there a special, secret formula that always guarantees victory? As chess is a multifaceted game, there’s no one uniform tactic or strategy that works for every single player all the time. Every player has his or her own unique style of play. What works for one player may not work as well for another. However, despite their differences, people who win in chess have one thing in common. What is it? The secret ingredient to make you win Grandmaster Aaron Nimzowitsch said, “Many men, many styles. What is chess style, but the intangible expression of the will to win?” In other words, it’s not enough to memorize dozens of possible chess moves. You need to have the will and determination to win the game. Chances are that in any single game you lose several valuable pieces along the way, and you’ll have to change strategies mid-game. But if you‘re determined and believe you can win, you won’t give up, and will play the game to its end. The will to win also helps you succeed in finance The financial world is similar to the chessboard. While it’s obviously harder to get on your feet after sustaining a financial loss than it is to restart a failed game of chess, you still need the will to win to become a successful investor. The market may have its ups and downs, but don’t give up. If you are determined to “win,” (read: prepare for a financially successful life) you need to keep reassessing your investing strategies and tactics as you go along. As... 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
The Best Way to Profit From Low Interest Rates– Rich As A King Episode 130

The Best Way to Profit From Low Interest Rates– Rich As A King Episode 130

If you like investing in bonds and other conservative investments, how should you invest when interest rates are low? Low interest rates and high inflation can actually lower the real value of your money if it is invested in bank savings accounts or CDs. So what are your options if you don’t want to take on a high risk (read: potentially high return) investment? Listen to this financial podcast to learn about a strategy that can help you make the best out of your investments during times of low... Click for more
Do You Need to Improve Your Financial Literacy?

Do You Need to Improve Your Financial Literacy?

Almost two thirds of Americans today can’t pass a basic financial literacy test. Can you? According to the FINRA Foundation’s National Capability Study, most Americans only got three out of six answers correct on a financial quiz… only 50%! FINRA (Financial Industry Regulatory Authority) is an organization dedicated to, among other things, protecting investors from investment fraud. It regulates stock brokers and brokerage companies, and works to create transparency in the marketplace. So it is especially interesting that FINRA reports that the majority of Americans are financially illiterate. Why does financial literacy matter? Imagine that you’re going to play a game of chess. What would happen if you had no idea what each piece was or how it moved, let alone the rules? You certainly wouldn’t be able to play. Your opponent could easily take advantage of your ignorance at every turn. In the same way, you aren’t going to get very far in the world of investing without sufficient knowledge of financial concepts. You can easily fall prey to scams or make uninformed decisions that can have serious ramifications. This is why financial education and literacy are extremely important, no matter your age or size of your bank account. Test your financial literacy How does your financial knowledge compare to that of the average American? Take FINRA’s five-question quiz to check your financial literacy now. Do America’s poor financial literacy scores mean that FINRA should tighten its regulations (in efforts to protect the innocent investor), or should organizations (the government?) provide more financial education? Financial education doesn’t have to be confined to the classroom. You can also get... Click for more
Which is the Best Country to Invest in For Global Diversification? – Rich As A King Episode 129

Which is the Best Country to Invest in For Global Diversification? – Rich As A King Episode 129

Global diversification, spreading out your investments among various countries, is an important part of investing. But how can you determine the best countries to invest in?  Global diversification is an important part of asset allocation. Want a chess metaphor to think about the importance of diversification? Think of diversification as “castling” ? a way to protect your investments. What are the tactics that you can use to diversify, yet invest safely? Need a guide to diversify and allocate your assets efficiently and responsibly?  For the first steps to take, go to www.richasaking.com/tools and use our asset allocation... Click for more