Managing your money well requires the same level of control and discipline that you would apply to your fitness. We all know that sustaining your fitness requires purpose and regular effort and your finances are no different.
When I am trying to adopt a new skill or way of thinking I often think about how easy training comes to me and how I can apply the same concepts to anything in life.
By following these simple tips, you can develop great habits and exert a much greater control over your financial house and your life.
Here are my 5 tips to manage your money like an athlete:
1. Spot the challenge
A big part of my life is keeping fit and playing competitive tennis. With tennis there are many different degrees of talent which is why the ATP ranks the top 2,000 tennis players in the world. Pretty much no matter how good I get, I am always faced with the challenge that someone is better than me, either in their first serves or return from serve.
Most people think their biggest financial challenge is paying off a house but it’s not, it’s losing their income.
For most, losing your income happens when you retire and this is when you need a much bigger financial commitment, to cover off any loss in your income, than buying a house. To have the same lifestyle, you may need at least 15 times your family household income and you aren’t able to borrow it when the time comes.
2. Put a plan in place
Much like any fitness program, once you define the challenge you need a plan that’s achievable to help get your best results.
Just like your fitness, you can’t eat as much as you like or have an unhealthy lifestyle and expect to reach your goals. Especially on the tennis court if you are not light on your feet or have power in your serve it’s difficult to have the upper hand in any game.
When you are looking ahead to your figure out your retirement income, instead of thinking you’ll need to find it by the time you retire and giving up because it seems all too hard, think about how much money you can put aside week by week or month by month and your pot will grow.