We all watch IPL for entertainment and time pass. But can we learn something from IPL? Let’s find out the Top 10 Life Lessons from IPL. This is going to be the most important IPL-related video you have seen. Watch till the end. Lesson number 10 is the most crucial, where we will discuss the 50:30:20 Investment Rule.
1. Pitch Report: Do Your Homework
Just like every team checks the pitch report and analyzes ground conditions before a match, we should understand our financial situation and market conditions before making any financial decisions.
Nowadays, kids invest in Stock Market, Futures & Options, and Cryptocurrency just by listening to social media influencers.
Life Lesson: Always do your research before making any financial decision, just like a Pitch Report.
2. Toss: Can’t Decide the Winner
The toss doesn’t always decide who will win the match. Recently, Royal Challengers Bangalore lost the toss but still defeated Chennai Super Kings and qualified for the IPL 2024 playoffs.
Similarly, a single failure doesn’t decide how successful we will be in life.
Life Lesson: External factors may not always be in our favor, but our response to these factors can determine our success.
3. Powerplay: Start Your Investments Early
In the first 6 overs of the Powerplay, the batting team tries to score maximum runs to set a big target. Similarly, we should start our investing journey early.
Life Lesson: Learn about the magic of the Power of Compounding.
Let’s say, we invest ₹10,000 annually at a 12% return rate:
If we start at age 35: By age 60, our investment will be ₹2,50,000, growing to ₹14,93,339 with compounding.
If we start at age 25: By age 60, our investment will be ₹3,50,000, growing to ₹48,34,631 with compounding.
This example clearly shows how starting 10 years earlier can significantly increase the final amount due to the power of compounding.
4. Strategic Timeout and DRS: Self-Assessment
In IPL, both batting and bowling teams get a 2-minute 30-second strategic timeout to take feedback from players and change the game plan.
Remember, “Time is the greatest advisor.”
Success Principle: Take two strategic timeouts daily for self-assessment: one in the morning to plan your actions and one at night to review your day in detail.
5. Balanced Team: Diversify Your Portfolio
Just as a successful IPL team needs the right combination of batsmen, bowlers, and all-rounders, we should diversify our investment portfolio.
Life Lesson: Remember Warren Buffett’s famous quote, “Don’t put all your eggs in one basket.”
Diversify your investments into Fixed Deposits, Stock Market, Mutual Funds, Gold, Commodities, Real Estate, EPF, PPF, and NPS according to your investment goals and risk appetite.
Thus, I can firmly say, “Diversify or Die!”
6. Aggression: Risk/Reward Ratio
Batsmen take risks to score big. They step out and hit fours and sixes but also increase their chances of getting out. Batsmen like Abhishek Sharma, Virat Kohli and Sunil Narine take risks to hit big shots, making them match-winners.
We can’t forget the dialogue from Scam 1992, “Risk Hai to Ishq Hain.”
Investment Principle: Always calculate the Risk/Reward Ratio.
If you invest in a stock priced at ₹100, expecting it to rise to ₹120 but setting a stop-loss at ₹90:
Potential Profit: ₹120 – ₹100 = ₹20
Potential Loss: ₹100 – ₹90 = ₹10
Risk Reward Ratio = 1:2
7. Impact Player: Planning for Emergency Situations
IPL matches are unpredictable, and anything can happen. Teams must always be ready for emergencies. Thus, IPL introduced the concept of the Impact Player.
Similarly, we should be prepared for emergencies in life.
Life Lesson: Develop an Emergency Fund.
The future is uncertain. Medical and financial emergencies can occur anytime. Save 6 to 12 months of your monthly expenses as an emergency fund. Keep it in cash, savings, and fixed deposits, but avoid investing it in the stock market.
8. D for Distraction, D for Deliver
IPL comes with fame, money, glamour, and excitement, which can be distracting. But the best players stay focused on their fitness and game. Virat Kohli’s focus and avoidance of distractions have made him one of the greatest batsmen of all time.
Success Principle: Our daily lives are filled with distractions like attraction to non-stop scrolling to social media reels, binge-watch marathons in Netflix and Amazon Prime and TV is full of soap operas and political drama.
So, cut all distractions to deliver. Remember the dialogue from Baba Ranchoddas Chanchad, “काबिल बनो, कामयाबी झक मार के तुम्हारे पीछे आयेगी!”
9. Coach: Seek Professional Guidance
Coaches and mentors play a significant role in the success of IPL Teams. For example, Chennai Super Kings coach Stephen Fleming and Mumbai Indians coach Mahela Jayawardene have helped their teams with strategies and planning, leading to multiple titles.
Investment Principle: Wealth is not about how much you earn, but how wisely you save and invest. You can seek professional guidance for Tax Saving Plans, Saving Tips, and Investment strategies.
10. Form is Temporary, Class is Permanent: Consistency is Key
RCB’s form was so bad that it seemed they would be out of IPL 2024. But by winning 6 consecutive matches, they secured a playoff spot, although they lost the Eliminator match against Rajasthan Royals.
When it comes to consistency, how can we not mention Thala Mahendra Singh Dhoni? His consistent finishing skills have helped Chennai Super Kings win many matches.
Similarly, if we remain consistent, success will eventually come in life.
Life Lesson: Regular investments and disciplined saving habits are key to long-term financial success. Today, we will learn about the 50:30:20 Rule of Investment.
50:30:20 Rule of Investment
Divide your income into three categories: Needs, Wants, and Savings or Investments.
50% for Needs: Basic expenses for food, clothing, and shelter. This includes Rent/Mortgage, Groceries, Utilities (electricity, water, gas), Transportation, Insurance, and Loan payments.
30% for Wants: Expenses for lifestyle and enjoyment, though not essential. This includes Dining out, Entertainment (movies, concerts), Hobbies, Vacations, and Shopping (clothes, gadgets).
20% for Savings or Investments: Money saved and invested for the future. This includes Emergency fund, Retirement savings (PF, PPF, NPS), Mutual funds, and Stock market investments. You can reduce your wants to increase your savings and investments.
Remember Warren Buffett’s statement, “Never depend on a single income. Make investment to create a second source.”
Conclusion
These were the top 10 life lessons we can learn from IPL. Comment and tell us which lesson you found most inspiring. What else can we learn from IPL?
