When starting a game of chess, the first moves are often referred to as “the opening.” Over time, various kinds of chess openings have developed, with their own names, including the Sicilian opening, the Ruy Lopez opening, the Queen’s Gambit, the English opening, the French Defense, and many more.
As you develop as a chess player, you will find that certain openings suit your personality and train of thought more than others. And once you have tried some out, you will eventually learn which ones are the best for you. Other kinds of openings may not make any sense to you whatsoever, and even after much practice, maybe you shouldn’t use them. After all, you only get one chance to open your financial game.
Find the investing techniques that are best for you
Similarly, when running your personal finances, you will eventually discover the methods and techniques that work for your specific personality. Of course, finances and investments are not a game, so you can’t experiment with different techniques in the way that you can with chess. But if you are aware of your strengths and your personality, you will find it a lot easier to research and find the financial methods and techniques that suit you the best.
Some people, for example, are very frugal by nature. They are happy to live with the basics and don’t seek much more than that. For them, strict saving and budgeting policies are the most suitable money management tools. But what if you’re a spender? You may find it impossible to keep up with a rigorous saving regime. However, working longer hours or finding a job with a higher salary may better suit your industrious personality.
This also applies to investments. Some people love the thrill of high-risk investments and are able to be calm even if their bottom line changes radically with market swings, while others do better with long-term investments that are lower risk. Some people find real estate suits them, while others prefer stocks.
What are your financial skills and preferences? Your strengths and interests? Don’t blindly follow what everyone else does. Make your financial decisions based on your specific personality and strengths, and you will hopefully make more money and lead a happier life.
For more on chess openings and investing, click here.