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Five Money Lessons From March Madness

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.

  1. 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.
  2. 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?
  3. 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.
  4. 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.
  5. 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.

Have Money Questions? – Get The Answers Here

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

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About the author  ⁄ Ted Jenkin @ Your Smart Money Moves

Ted Jenkin @ Your Smart Money Moves

Hey!

My friends and family all think I’m a workaholic, but I say I’m just a guy that loves to help people do better in life.

My mother is still the only one that calls me by my real name Theodore Michael, my wife calls me Teddy, but for the rest of you it is just plain old Ted.

Ever since I was a little kid, I always loved money and being an entrepreneur. In fact, I still have cassette tapes of me talking to my grandmother at the age of five and my mother tells me all the time how much I played with money as a kid...

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Ted Jenkin is a frequent guest columnist for the Wall Street Journal and Headline News Weekend Express. He is the co-CEO of oXYGen Financial. You can follow him on LinkedIn @ www.linkedin.com/in/theceoadvisor or on Twitter @tedjenkin.

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice.

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor regarding your individual situation. 

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