Not many of the younger generation may know about Chris Cairns, the former New Zealand cricketing star who is currently fighting for his life in Australia after he suffered an aortic dissection last week. He is presently awaiting a heart transplant in Sydney.
But, cricket enthusiasts and BlackCap fans would fondly remember him as one of the finest all-rounders from the past decade, as accredited by Australian legend Shane Warne, to have played the sport for New Zealand, with his powerful hitting and medium pacing abilities, having represented his country in 62 tests and 215 ODIs. While he scored 3,320 runs, took 218 wickets, and batted at an average of 33.53 in the long format, he blazed through ODIs with 4,950 runs and 201 wickets to his name. In fact, his unbeaten knock of 102 runs was also what led to Indias ultimate knockout and New Zealands eventual win in the ICC Champions trophy, 2000.
His life beyond the pitch remained just as volatile after he announced retirement in 2006.
From winning a libel suit and compensation worth 1,42,000 dollars in the UK against former cricket honcho Lalit Modi in 2012 for his tweet insinuating his involvement in match-fixing as the reason for his absence from IPL (Indian Premier League) to being acquitted for perjury and misdirecting the court in relation to match-fixing allegations leveled on him by some players in 2015, owning a virtual sports company to washing bus shelters, becoming a diamond merchant to ultimately, driving trucks and washing bus shelters for a paltry 17 dollar an hour salary with the local county- the man has seen it all.
Even though rags to riches stories are always inspiring, it is really the fall from grace and the riches-to-rags journey of such prominent individuals like him that has many valuable lessons for us to imbibe. Here are 4 ways to preserve and appreciate your hard-earned money, so that your wealth does not desert you in dire times:
Plan, Plan, and Plan
While endless and mindless splurging on your favorite things is extremely tempting, it is just as dangerous and reckless. Hard fact, but your expensive sneaker collection or your ever-growing shopping bills won’t rescue you in times of financial stress.
Hence, start out with an assessment of your income, liabilities, and risks to chalk out a plan that details your financial goals, required amount and duration, so that you are able to take control of your income and expenses and eke out an effective investment strategy to achieve aims like a comfortable retirement and other major aims.
A sudden financial windfall piques our instinct to spend more since we think it will last forever. But, having your life mapped out financially ensures that you can foresee whats coming and stay away from habits that put your financial health in danger.
Save for rainy days
As Robert Kiyosaki puts it, It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for. Making money is much easier than preserving and saving it for the long term. And let’s face it, we all face rough patches in our lives, where the financial stress can be overwhelming, as was the case with Cairns legal troubles.
Getting your money to work for you even in times like these can be tough, but you can get an edge by setting aside an emergency fund, the purpose of which will be to help you tide over such tough times so that you do not have to dip into your investments.
Ideally, an emergency fund should have all compulsory expenses for at least 6-12 months and a comfortable additional margin for any unanticipated expenditures. You can also consider investing these funds in a liquid mutual fund so that you continue to earn returns on your rainy day reservoirs.Invest Hard
Do not discount the power of patience, time, and compounding. Investing allows you to harness the power of compounding, which is simply earning interest over your interest, significantly multiplying your gains in the long run. In fact, if you were to believe Warren Buffett, perhaps the richest investor on this planet, he credits his extensive wealth to compounding, rightly considered to be the eighth wonder of the world!Let’s say you invest just Rs 5,000 per month for 20 years in the market. At 12% assumed returns, youll end up earning more than Rs 37,00,000 over your invested total of Rs 12,00,000, taking your overall gains to nearly Rs 50,00,000!
Most of us like to increase our expenses when we get a raise. Instead, increase your investments every time you earn more. Youll thank yourself immensely for this!
Become financially responsible
It takes ages to earn wealth, but only seconds to squander it away! Overcome the poverty mindset that you will never have enough money when you have the power to change that! Seek out a financial planner who can help you realize the value of money and bring your goals on track. Invest in learning as much as you can about financial planning and personal finance so that your wealth does not slip away from your hands like sand, all because of some poor money choices and adverse life events. Take your first step, today!
Chris Cairns’ life beyond the pitch remained just as volatile after he announced retirement in 2006.
