One of the major flaws in many people’s approach to managing their personal finances is that they think it’s just a one-time ordeal and then it’s over. However, getting your financial life in order takes much more than reorganizing your budget just once. As a recent Forbes article so aptly put it, effectively managing your personal finances requires constant attention – training, if you will.
There are quite a few tips that can be taken away from observing Olympic athletes and applied to your own financial lives. These 2012 London Olympics have seen numerous work records, Olympic records, and personal records broken – some athletes performing at seemingly superhuman levels, even. Regardless of their performances at these Olympic Games, every athlete competing in the Games have undergone extensive training, workouts, and preparation. Likewise, getting your personal finances in order will require some dedication and perseverance on your part.
The previously mentioned article, written by Erik Carter, draws several fitting comparisons between Olympic athletes’ training and managing your personal finances. To begin the process of getting financially fit, you first need to know where you’re starting from. All athletes, not just Olympians, need to know what physical shape they are in before they begin their workout regimen. For your personal finances, track your cash flow, get a copy of your credit report, take a risk tolerance assessment, and compare your insurance policies.
Then, find professional help if you need it – even superstar athletes have coaches. Lastly, plan for the long term. Set feasible long-term goals for yourself and keep those goals in sight! Olympic athletes often begin training for the Olympics 4 years or more in advance – by starting to save early, you will provide yourself with some flexibility for unexpected obstacles you may face later down the road.
Becoming financially fit requires not only the resolve to get your personal finances in order, but also constant evaluation of your budgets, spending, and investments. Though we may be nowhere close to the athletic prowess of Olympic competitors, we can, at the very least, take away tips that can benefit us in our personal financial lives!