4 Skills You Can Learn From Poker to Improve Your Financial Health
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It has been over a year into the coronavirus recession, and financial health is weighing heavily on everyone’s minds. A Pew Research Center survey points out that Americans are starting to feel better about their personal finances compared to the beginning of the pandemic. However, around 44% of the people who answered the survey think it will take three years or more to recover their losses.
If you're looking for a unique way to learn new skills that can help you improve your financial health, you can discover a lot of financial health tips from playing poker. Poker is something everyone can learn from because no other game combines elements of logic, psychology, and strategy in the same way poker does. Here are four skills you can learn from poker to improve your financial health:
Emotional control
Do you spend money on something you don’t really need whenever you’re feeling stressed, bored, or other extreme emotions? Poker can teach you how to keep your feelings under control, so you can avoid emotion-fuelled shopping sprees.
In poker, you can’t win if you let your opponents see what you’re thinking or feeling. The best poker players only show what they want their opponents to see or keep a “poker face." Poker champions have to stay cool, calm, and collected; if they let their emotions get the best of them, they may play aggressively and take huge losses in the process. Much like in poker, you have to develop emotional stability when managing your personal finances to ensure that you don't overspend.
Strategic thinking
Poker requires players to use logic, reason, and critical thinking skills to win. A clear-minded strategy can enable you to win even with the worst cards, if you practice enough to hone your skills. Pros who play poker for real money will devote as much time studying the game, observing their opponents, and improving their strategies as they do actually playing. Working on your game consistently is key to gaining the strategic thinking skills that you need to succeed. You need to prepare ahead in order to predict the moves of other players.
Likewise, achieving your financial goals requires a clear vision, planning, and strategic thinking. Having the right strategy allows you to navigate your financial circumstances and play with the cards you’re dealt. Before you make any financial decision, do your homework to see how this choice will affect your long-term plans. Be strategic in the way you budget, save, and invest, to ensure that your financial health is improved in the long run.
Decision-making
Investors and poker players have a lot in common. They live in a world of uncertainty where the odds aren’t always stacked in their favor. In order to mitigate risks and make sound decisions, they have to calculate the probabilities and rely on whatever information is available to them.
The best poker players fold most of the starting hands they receive. Likewise, you shouldn’t invest in every company that comes your way; you need to be discerning about your options and spot the best opportunities. It takes time and effort to understand the markets, keep up with the news, and monitor trends. If you’re planning to make investments, think like a poker player and gauge the risks against the rewards.
Money management
Poker is all about knowing how to manage your money. It’s incredibly tempting for beginners to make risky moves like going all-in on a bluff or raising without a realistic chance of winning. A good poker player would assess the risks and play within their bankroll to avoid severe losses.
Don't be an inexperienced player who never sets limits or is too afraid of missing big money. When it comes to money management, you have to monitor your spending and cut costs when necessary for sustainable financial growth.
Disclaimer: the content presented in this article is for informational purposes only, and is not, and must not be considered tax, investment, legal, accounting or financial planning advice, nor a recommendation as to a specific course of action. Investors should consult all available information, and consult with appropriate tax, investment, accounting, legal, and accounting professionals, as appropriate, before making any investment or utilizing any financial planning strategy.
