Ready to get your finances in order? Then get in the game-day spirit this autumn
My favorite season of the year is here. And that means football season is starting. In this space recently, another financial expert explained how to create a “game plan” for retiring. Today, I’m going to tell you how your financial life can be akin to being the general manager of a football team. Sound crazy? Let’s explore.
Select your team
The Chiefs and other NFL teams draft and sign players, along with choosing their coaches. Have you noticed how many coaches are on their staff?
Football and life have become highly specialized these last few decades. Yes, you can research topics on Google, but none of that considers your unique situation. You are likely busy with your career, managing a household and squeezing some fun in. Do you really want to take your highly precious and valuable free time in managing your money life? It might be better to hire experts to assist you.
Start with a financial planner, who often can link you to other resources. A financial planner can serve as your head coach and bring in other experts, like estate-planning attorneys, insurance agents, employment attorneys and others as your needs change.
Assess your current situation
I’m sure the Chiefs do this routinely. Do you with your money?
What are your assets and liabilities? The Chiefs may have a “weaker” position group and address that. One of your liabilities may be carrying too much debt, or that you haven’t taken advantage of employer sponsored saving plans, or that you aren’t saving in way that limits your income tax liability.
Or perhaps you are not maximizing your income potential and need to ask for a raise or look for a new job. You likely have assets, too, like your human capital to make more money, and of course investment and real estate assets.
Do you know your net worth and do you focus on increasing it year over year? People successful in their money life focus not just on investment returns, but a broader picture that includes their income, savings and spending. Net worth — your assets less your liabilities — is a much stronger view of your money success.
Build a playbook
The Chiefs goal each year is to win the Super Bowl. Andy Reid is renowned for his creative plays. For you, start your money playbook by identifying your goals and values. What are you trying to achieve?
What does success look like for your life? I have found that it is much easier for clients to save when they have a purpose. Then, likely working with a financial planner, build your playbook for how to achieve these goals.
This plan should include income from your career, savings targets and spending plans. These should tie together — just like an offensive line needs to be in sync with the quarterback and receivers to make the plays work. Working with an expert, like a financial planner, you may be able to identify creative “plays” — or smart plays that boost your success.
Allocate your resources
If you choose to pay your superstar quarterback a lot of money, then as the football GM you have less to allocate to other players. All of us have limited resources, and it’s important to make conscious decisions on how to allocate those resources.
If you want to spend on Chiefs season tickets, you may take fewer vacations or limit your other entertainment spending. If vacations are important to you, then you may choose to spend less on fancy coffee, clothing and eating out frequently.
Practice and execute the playbook
The Chiefs practice their plays before unveiling them in games. You may need to “practice” by establishing new habits. For example, pay yourself first by putting money directly into savings from your paycheck. Turn off ad notifications from shopping ads. Unsubscribe from retailer emails that make you want to buy more stuff. Cut out streaming services that aren’t getting many views in your household.
Maintain your vehicles and keep them for eight years or longer. Join loyalty clubs to receive discounts when you do eat out. There are many new habits that can help you achieve your goals.
Approach your money life like a football team. Hire coaches, understand where you are and where you want to go, build a playbook and practice new plays (habits) to reach your personal super bowl.
Joni Lindquist, MBA, CFP, is a CERTIFIED FINANCIAL PLANNER professional and a member of the Financial Planning Association of Greater Kansas City. She is a former corporate executive, is a Principal, Financial Planner and Executive Coach at Aspyre Wealth Partners. Aspyre uses a Life Centered planning approach; partnering with clients to utilize their human and financial resources to live their best lives.
