We have been very lucky in our professional sports teams here in New England. Local fans have had the chance to see multiple championships in every major sport up-close over the past few decades. That’s unusual. Most regions would be delighted to have a single team with that kind of sustained success.
One of the best side-benefits of all those championships has been that a lot of people around here have had the chance to observe the framework that creates them. Sure, there are the “Hollywood” moments. But they only come from putting it together practice by practice, game by game, quarter by quarter, play by play. And a little bit of good luck always helps.
Having enjoyed watching sports, playing sports and coaching sports my whole life, I have seen over and over how many great life lessons can be learned from sports. And – as a banker – I have also seen how many of those athletic lessons also apply to successful personal money management.
Every coach knows this and it’s absolutely true. You have to have a good team. You have to know their strengths and weaknesses. A coach has to know their own strengths and weaknesses. And – if you want to win – you have to be willing to make decisions based on all that knowledge.
If you don’t feel like you’re managing your finances successfully, chances are you know exactly what the problem is. As the “coach” of your financial team, it’s your job to find an “assistant coach” or “special teams player” who can help you get past that obstacle. It could be a banker, a CPA, an attorney or a financial planner. Or a family member. A friend. Even a therapist, if you have the feeling your troubles with money have emotional roots. (Which is very common.)
If you are happy with your finances, you have to be even more vigilant. “Your greatest strength can become your greatest weakness” is an old sports saying for a good reason. Look for professionals you know, like and trust – people who will encourage you to question your assumptions and introduce you to ideas you may never have considered on your own.
A huge part of the fun of watching sports is being one step removed from the action. Which gives fans a valuable sense of passionate objectivity. Ideally, you should be passionately objective about your finances – talking over ideas with people who value pursuing financial success, reading articles, thinking about the decisions you’ve made and how they’re working out. Paying close attention while remaining a little bit detached. It’s a fine line, and a skill worth learning.
Because teams that win consistently are usually famous for both their passion for their game and their ability to be objective. If you’re not at all interested in thinking about your finances that way, that’s perfectly okay. But be sure to factor that self-knowledge into your plan, so it can run successfully without sustained “owner interest.” (More difficult but not impossible.)
Playing sports is just a lot of fun. And ideally you can find a way to build some fun into your financial plan. People who manage their money successfully usually eventually find they have more than they need to cover their basic living expenses. For most, that’s the point. Using the dividends to enjoy your life is not just the end-game – it should be a built-in part of your game plan from Day One.
And the best news of all? You don’t need to win a Super Bowl, a Stanley Cup, the World Series, an NBA Championship or any championship to have a winning record with your own personal finances. Most people who make the effort actually win in the long run, and they often win big.
Nick Maffeo is the President & CEO of Canton Co-operative Bank in Canton. “Smart About Money” is a regular column he writes for the Canton Citizen. Have a financial question you’d like to ask? Email to info@cantoncoopbank.com.