As we enjoy the games, let's remember that there are some lessons we can all learn from Olympic athletes - even lessons we can apply to our financial fitness. The mindset with which you approach your finances actually isn't so different from an Olympian's approach to their sport.
Defining Your Goals
All athletes develop tailored goals to put them on the path to success. Financial goals are the same; if you don’t lay the groundwork for your financial future by establishing goals and priorities, the financial future you want won’t happen on its own.
Short-Term vs. Long-Term Goals
Athletes often have both short-term and long-term goals; a young track star may have a goal for their next meet while simultaneously working towards Olympic trials far into the future.
Long-term goals could manifest through a retirement savings account, or perhaps an eventual college fund for your children. What do you want your financial reality to look like in the long run? What can you do now to make it happen?
Yet of course, establishing short-term goals is also crucial to your finances and intermingles with these long-term goals. For example, you might say “I am only going to spend ‘x’ percent of my paycheck this month,” or “I am going to set aside ‘x’ amount of money every month to save for a vacation next year.” By consciously thinking about your goals and how you can attain them, you’re already one step closer to financial fitness.
Staying Disciplined
Athletes are notorious for the hard work they put in. Staying in peak physical condition and aiming for constant improvement requires immense discipline, as does staying in peak financial condition.
Even if you’re working with a financial advisor, that's not the same as a coach that can put you on the bench for failing to have discipline. An advisor can help build a plan for you, but you are the one responsible for sticking to your goals.
Stick With it
Don’t be discouraged if you do happen to go over budget or your investments aren’t doing as well as you hoped. Just like an athlete: pick yourself back up, refocus, and keep putting in the work to reach your financial goals.
Setting yourself up for financial freedom might feel just as good as winning a gold medal!
Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Services, securities and insurance offered through Independence Financial Advisors, LLC are not FDIC-insured, are not deposits or obligations of nor guaranteed by Franklin Savings Bank or its affiliate. These products are subject to investment risk, including possible loss of value and are not insured by any federal agency.