With the first big day of March Madness behind us, day two is sure to give us some other memorable buzzer beaters for the years to come. While we all get focused on the office pools, March Madness can really teach you some great money lessons to help you make more smart money moves for the rest of your life.
- Defense is more important than offense – People I have met over the years are often chasing the investment that they believe can give them the greatest return. This can be a risky stock, a piece of real estate, or some private equity investment. In additional as many people approach retirement, they continue to have the lion’s share of their money in the stock market. Pulling back your risk when you get closer to your goal or when you get older in age are important defensive strategies that can help you win games versus always thinking about offense.
- Making a game plan is essential for victory – If you had Bobby Knight or Mike Krzyzewski as your coach in financial life, do you really think they would let you run your finances without a game plan? Knowing exactly what your goals are and how much you will need saved to reach those goals allows you to set an effective financial plan in place today toward reaching those objectives. If your NCAA Championship is retiring at 55, how much money do you need to save and what rate of return will your assets need to earn to reach that goal?
- Team play is important – Teams have five players for a reason. If you are doing your financial planning all by yourself, odds are you are going to miss some great opportunities because you simply can’t play all of the positions on the court. Whether that means getting financial, tax, or legal advice, having the right team in place can truly help you make fewer mistakes as you work toward financial independence.
- Underdogs can still win big games – Some people believe if they don’t make a lot of income they will never achieve any level of real financial success. Every March Madness we see underdogs win big games just like Morehead State did in Round 1 against Louisville. You can still win big even if you don’t earn big. This becomes a matter of setting a more disciplined savings strategy in place and not living a lifestyle larger than your income. I have seen many millionaires in twenty years in the business from couples that would be considered the Cinderella story.
- Free throws will tend to be your most important shot – While basketball tournaments have highlight reels of slam dunks, three pointers, and buzzer beaters, free throws is what matters when the game is on the line. The biggest free throw advice I can give you is to save one third of every raise or bonus you get for the rest of your life. If you get used to spending these bonuses and raises, you are essentially wasting a free throw. Even if you struggle with your overall rate of return on your money, savings can take you a long way to achieving your goals.
March Madness is a fun time of the year even if you aren’t a college basketball fan. Especially the first two days of the tournament when four games are going on at one time with one last minute thriller right around the corner. The only money lesson you might learn is whether your win or lose in the office pool, but these five smart money moves just might help you win a championship.
Ted Jenkin, CFP®, AAMS®, AWMA®, CRPC®, CMFC®, CRPS®
Co-CEO and Founder oXYGen Financial, Inc.
oXYGen Financial, Inc. co-CEO Ted Jenkin is one of the foremost knowledgeable professionals in giving financial advice and Smart Money Moves to the X and Y Generation.
Phone 1.800.355.9318 or 770.777.0427
Securities and Investment Advisory Services offered through NFP Advisor Services, LLC (NFPAS), Member FINRA/SIPC. Oxygen Financial is not affiliated with NFPAS. NFPAS does not provide tax or legal advice. This site is published for residents of the United States only. Registered Representatives and Investment Advisor Representatives of NFP Advisor Services, LLC (NFPAS) may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed. Not all products and services referenced on this site are available in every state and through every representative or advisor listed. For additional information, please contact NFPAS Compliance Department at 512-697-6000. PLEASE NOTE: The information being provided is strictly as a courtesy. When you link to any of the web sites provided here, you are leaving this web site. NFP Advisor Services, LLC makes no representation as to the completeness or accuracy of information provided at these web sites. Nor is NFP Advisor Services, LLC liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to.