If someone didn’t track the numbers LeBron James posts every week, do you think he would be making millions of dollars playing basketball? Of course not. Isn’t it true that every player gets paid according to how well they average at these numbers?
Take a look at some of these stats:
It’s fun to watch elite athletes doing amazing things we can only dream of! Wouldn’t it be equally fun to watch your own amazing numbers in terms of your financial abilities? Those who are doing great things with their finances are seeing some amazing opportunities present themselves, just like these star athletes, things like seeing their savings grow exponentially due to compounding interest, eliminating all debt including their mortgage in a short amount of time, and having the cash flow to invest in real estate that can make them more money. The truth of the matter is, just like professional athletes who are paid based on their numbers, you will “get paid” by how well you do the following:
- Save money each month, and not go into further debt.
- Pay off debts each month.
- Manage emergencies that arise.
- Provide fun activities for your family that you don’t put on a credit card.
- Prepare for retirement.
- Lower your taxes.
To take the sports analogy a little further, let’s suppose the following:
If you don’t track how you’re doing in these areas, you will fail financially and be “kicked off the team” so to speak.
If you don’t track your money and end up not performing well in your own personal financial game, you may be substituted out, or traded. In a marriage, this is called a divorce and it is expensive!
Just as in sports, if you get mad and throw a fit, you can be charged with a penalty during play. In your financial life, this is called getting into arguments with your spouse or partner over money and it causes real harm to relationships.
If you run off the court while your financial game is being played, you end up out of bounds with your money. This is called debt in the game of life and it means you end up turning your money over to others to make them more money while you go broke.
If you don’t have the right equipment, you can slip and fall, even get injured and have to sit out of the game. In your own personal financial life, this is called not being prepared for retirement or having to go into long-term care without having any way of paying for it.
So many similarities exist with regard to playing sports and playing your financial games. It’s always best to get a coach and and learn how to practice playing properly with their help than it is to go it alone.
For more information about a financial coach (as opposed to financial advisor) visit www.moneymastery.com. Or contact me: peter@moneymastery.com for a no cost discussion.
