It is nearly time to go hunting in the back of cupboards for those board games not seen since last year. But what lessons can they help teach us about investing our money?
- Monopoly – the importance of recurring income
- Trivial Pursuit – do your research
- Jenga – build solid foundations and don’t be over ambitious
- Twister – be flexible but don’t over complicate
- Snakes and ladders – investing has ups and downs
- Family fortunes – diverse portfolios get the best results
- Who wants to be a millionaire? – take advice when you need it
- Operation – hold your nerve
- Xbox One – embrace technology
- Hungry hippos – be greedy when others are fearful
There are many money lessons from Monopoly, including the importance of holding some cash for emergencies. My favourite though is the value of building a portfolio of investments which generate regular income - this is the key to success and financial security.
Sometimes it’s not who you know, it’s what you know – or where to look. Making some time to understand your investment choices will help you make better decisions and ultimately you will reap the benefits.
The best portfolios are solidly built with a cash buffer and then strong blue chip foundations made up of tried and tested fund managers. Don’t be too ambitious, the best way to get rich is slowly and carefully.
Keeping your portfolio simple will make it easier to manage so you can comfortably stand on your own two feet. But keep flexible to adapt to change when you need to.
With the potential reward of the stock market comes risk. In order to beat the returns on cash and make sure your money keeps pace with inflation, there will be times when you’ll experience the downs as well as the ups. Stick with it and over the long term you will be rewarded.
Take a team approach. A balanced diverse portfolio is the best way to reduce risk and generate consistent returns. Choose the right team to manage your money, expert fund managers who excel in different markets to spread your risk and take advantage of global investment opportunities.
Phoning a friend is the perfect example of how most people take financial advice - as and when they need to, when they either lack the knowledge or confidence to make the decision themselves.
When things get tough, and the markets are against you, good fund managers will see you through. Hold your nerve and stick with them to reap the benefits.
Technology has opened up new ways of playing traditional games. Investment too, looks entirely different from the “man from the Pru” days of collecting weekly amounts door to door. Yet much of the investment world is still moving from paper based to digital. Managing your investments online is so much easier, quicker and often cheaper than old school ways.
Buying low and selling high is the recipe for investment success. However, it’s easier said than done, especially when committing your hard earned savings to a troubled market. But if you are able to sleep at night, investing when the screens are red means buying in at cheaper prices and with the potential for greater profits.