Why do I feel chess is like money management and therefore can be compared to one another? Well for the most part I like the fact that I embrace both of these as a part of my life. I also believe that with practice the things you enjoy doing can be perfected every day. See below for my list, which helps solidify why chess and money management are very similar through my eyes and hopefully through yours as well:
Chess is like Money Management:
Strategy Wins – In life if you have a good strategy you will succeed.
Save and use all your moves before you get killed – (Bankruptcy / Foreclosures)
Always think ahead – Payday is Bi-weekly for many, everybody has to make their money last.
Take Risks to win the game – Invest when you have it.
Sacrifice a little and continue forward – Rainy Day Fund
Always a battle between – Savings and Expenses
What is the end result – to kill the king? King=Retirement
Do not fall for a Stalemate – Change your money routine to avoid falling for the same mistakes. (Repetitive debt)
Do you like my Chess comparisons’ to money management? I like both chess and money management, and with proper thinking and strategies you can win at both games. Every financial decision you make is like a chess move either you move forward or get eaten by making bad money mistakes. For example like adding new debt and co-signing loans for others. These two money issues can be easily avoided by just thinking before you act upon them, and seeing what your future move will look like if you are sadden with these financial mistakes. That friend or family member you co-signed for, that you are trying to help out will thank you now and later lose contact with you because they are late with the loan payments. Then that company will soon start contacting you to pay for the delinquent loans. Avoid mistakes like these to prosper later, and when you have all your financial priorities in order then you can be generous with others who might need a helping hand.
What I like to think before I have to make a money decision is:
- What is my first option?
- What are my other options?
- What is the value behind this money decision?
- What can I do to get the best use out of this decision?
- Will this increase or decrease my Net Worth?
- Will this decision make my life simpler or complicated?
- Will this decision kill my chances at success?
I hope you can see that if you also look at these easy questions how you too can avoid crazy mistakes in life.
Comment if you like chess and if you can actually visualize how chess can be compared to money management?
Rich Uncle EL
I like the analogy. Really, it's almost similar because of the strategy component I believe. To win at chess, you need to think strategically and think steps ahead. You can set yourself up for future success with good moves early on, or you could dig yourself a big hole to get out of by making even one critical mistake. Same applies to getting to a successful retirement.
Interesting! I agree with most points of comparison but would like to add couple: 1) both in chess and in money management there are strict rules (the rules that make the game what it is) and if you break those you lose; 2) both are systemic – you don't rely on one piece only but pieces play together. Thanks for making me think!
Thanks for the comments Im glad you guys found this article useful, now I can come to both of you in the future and dicuss future money moves.
I like the Rainy Day Fund one and also the idea of always be thinking ahead. I think that just looking a few moves ahead we can get ourselves in a much better place financially.
Oh, and for some reason, this post wanted to make but break out my old chess set..
Break it out asap, Chess is a fun even if you have to cheat and play on your cell phone. LOL> It's hard finding another chess competitor.
Amen to strategy wins, that's what the personal finance game is all about!!