World Cup fever is upon us. For a month beginning on 12 June and running until 13 July, the football world will come together and embrace the Brazilian slogan of “all in one rhythm”.
If you look a little closer at the game of football, you’ll find many similarities to investing and saving. In fact, the player positions are a good place to start.
The goalkeeper investor is hands-on. They keep an eye on the state of play and raise their gloves on approach to both protect their savings and enhance their grip on their investments.
If this sounds like you, take note from the best, Belgium’s Thibault Courtois, who boasts an 87% save percentage. You will need to be alert for penalties and also anticipate where the ball will fly. The end result often rests entirely in your hands, so it pays to take professional financial advice.
A defender’s primary duty on the field is to win back the ball from the opposition and prevent them from scoring. Take note from Italy’s Giorgio Chielleni, who has a skill for reading the game.
Off the field, this type of investor is the strong, cautious type. They like to deflect all attacking influences away from their investments.
Are you a defender? Protecting your retirement savings is a great strategy, and you can further enhance your investments by enlisting the help of a good coach.
As the key link between defence and attack, this is one of the most demanding positions on the football pitch. Midfielders are usually the fittest members on the team, like Yaya Toure (Ivory Coast), the best midfielders are multi-skilled. The midfield investor is no different.Australia has better gross savings rates (% GDP) than all five top-seeded countries
This is the person who has their finances in tip-top shape. Because of their agile financial know-how, they are able to revert to a defensive position when necessary and manage debt. Midfielder investors are flexible by turning defence into attack, and vice versa. They also share the responsibilities of defenders and forwards since both must minimise their losses and create (savings) opportunities up front.
Regardless of which position you choose as an investor, here are a few interesting facts about Australia’s competitors when it comes to savings and investments:
- The biggest savers on the global stage: According to data from the World Bank, Australia has better gross savings rates (% GDP) than all five top-seeded countries (Spain, Germany, Portugal, Brazil and Colombia).
- Top savings account rates from around the world: When it comes to the members of Group B from the 2014 draw, Australia has better savings rates than Chile, Spain or the Netherlands.
- Inflation: When it comes to inflation, with a rate of just 2.9 per cent, Australia has a ranking of 89, which is lower than Spain and the Netherlands but greater than Chile. Broadly speaking, a low inflation rate can reduce the severity of recession and lower the risk for investors. Inflation is also a key factor to consider when protecting your savings
You might not be competing as a player in the FIFA World Cup, but you can take some of the lessons from the field and apply them to your savings and investment strategies.
Determine your position and always keep your eye on the ball. With a little effort, you may find your savings and investments are “all in one rhythm”.