UK Basketball & Money

Posted on Tuesday December, 29 2009 | 0 Comments

I am a HUGE Kentucky basketball fan.  While last year was a humbling season, this new team under new Coach Calipari is turning some heads.  As a personal finance blogger I couldn't help come up with some ways that basketball and finances are similar.  Here goes.

  • Value every possession.  What you do with every penny you earn matters.  Are you on top of where it's going? Are you earning a top interest rate on your savings and invesments?  Once your money is lost, there is little you can do to retrieve it.  Make sure you value what you have.  If you respect your money, it will respect you back.  The opposite is also true.
  • Have good support.  Kentucky has fantastic fan support.  Who are your fans?  Who is in your corner when it comes to managing your money? Are you on your own?  Act quickly.  Include your spouse and good friends in your money decisions.  We need support to continue to succeed.  We all need someone to be accountable to about our money.  Do you have someone to bounce financial issues off of?
  • Learn from mistakes.  Every player makes mistakes.  The best choice once a mistake is made is to learn from it.  Don't allow bad money habits to continue. Confront the mistake and devise a plan to not allow it to happen again. 
  • You've never arrived.  As a team or an individual, you never stop learning or improving.  To be effective you must always be learning and growing in your knowledge about money and investments. 
  • Fundamentals are required.  You can't succeed with money unless you have the basics of a written budget.  A budget tells the dollars you earn where to go.  You also need a savings account for emergencies.  Without these 2 fundamentals you can expect your financial game to go nowhere.
  • Recruit a high level of talent.  You need solid team members handling your money.  Having teammates that are great at their position will enhance your performance.  Have a great accountant.  Insist on a financial planner who has a strong record with clients.  Surround yourself with a "dream team."
  • Have high expectations.  You will never succeed with money unless you expect a lot from it.  You need to give your best everyday.  You don't succeed in life without continuing to set high standards for yourself.  How hard is your money working for you?
  • Don't deviate from your game plan.  Even though you may be taking some tough knocks, stick with what makes you successful.  The recession caused a lot of investors to cash out and run.  Have a long term perspective on your finances.  Don't allow emotions to govern your financial decisions.
  • Listen to the coach.  In the financial world, a coach is a financial planner.  If you invest the money to get a professional's advice, by all means take good notes.  This person's job is to give you a financial plan that helps you reach your financial goals.

I know there must be a few more basketball fans out there.  What parallel did I leave out?  Please add to my list.