Football Finance

Who knew that sitting on the couch watching football could help one improve their understanding of personal finances?  The scientific research is not yet conclusive but stick with me here.

Just like a football team has a plan for how to attack the opposing defense, your own finances need a plan.  Whether it’s how much to save, how to invest that savings, or even how to best protect yourself, your loved ones, and your possessions from the unexpected.  The first critical steps are knowing what you want to accomplish, assessing your current resources, and preparing an initial plan (it doesn’t need to be perfect).

Mike Tyson is credited with saying that everyone has a plan until they get punched in the mouth.  When the Patriots have trouble stopping the opponent’s running back, their defense has to make an adjustment at halftime to correct their positioning on the field.  Likewise in our finances, time and life events will get in the way of our best laid plans.  That can come in the form of a sudden job loss, a scary stock market drop, or a child who falls in love with an expensive college.  Life happens, things come up, and plans need to be adjusted and most corrections are best made sooner rather than later to avoid falling any further behind.

Finally, both football and finances are all about teamwork.  All it takes is one missed block and your quarterback gets sacked, or one blown coverage and your opponent scores a touchdown.  Football is truly a team sport, because every last player on the field needs to be doing their job and working together to accomplish the team’s goal.  Likewise, it’s necessary to make sure all the different aspects of your finances are helping you to best reach your personal goals.  Your accounting, estate planning and investments need to be coordinated to ensure your financial plan is designed most effectively for your specific circumstances.  For example, your estate planning attorney may have prepared updated wills and trusts, but if the beneficiaries listed on any 401k’s are not consistent with those documents your bequests may not go as planned.

So while planning is critical, it is also important to enjoy the journey.  Check items off your financial to do list, but also ensure you have enough chips and salsa for watching the games.

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