Batter up — it’s baseball season!
Time to oil that mitt and get your throwing arm warmed up.
Believe it or not, America’s national pastime can actually teach you valuable money management lessons. Here are six money takeaways you can learn from baseball.
1. Three strikes, and you’re out!
We all drop the ball sometimes, but you only have two chances to make mistakes before the consequences get dire. For example, missing one or two credit card payments isn’t the end of the world. But, missing three can have a far bigger impact on your financial health. Creditors will likely hand over your debt to a debt collection agency, your credit score will plummet and your account may be canceled.
Don’t miss those credit card payments. Three strikes and you’re out!
2. Singles and doubles can help win the game.
Everyone would love to play or watch a game where your team only hits grand slams, but that never happens. Don’t give up when you only hit a single or a double — those can help win the game, too.
When it comes to money, every dollar saved adds up. Don’t fall into the mistake of thinking it only pays to save big bucks. Every little bit can help you build your nest egg and reach your financial goals.
Aim for the home runs, but remember that singles and doubles can help win the game.
3. It’s a long season.
It’s easy to get disheartened, but nearly every team has to pick themselves up and get back in the game after a loss. The best way to keep your spirits up after losing a game is to remember that it’s a long season and your team can recover — maybe even take the championship.
4. Strike out swinging.
In baseball, you can strike out by watching a great pitch go right past year — or by trying to hit a ball and missing. Finances work similarly. You may miss more than you hit, but you’ll only see real success if you at least take a swing. Look for investment opportunities, avenues for career growth and other ways to improve your financial circumstances.
5. Know your stats.
In baseball, players carefully track their performance metrics, including their batting average, on-base percentage and earned-run average and a lot of other data. Similarly, staying informed is crucial when it comes to your finances. Make sure you are fully aware of your financial stats, such as your net worth, credit score and debt-to-income ratio. This will keep you on top of your financial health and improve your weak spots before they spiral out of control. Know your financial stats so you can be on top of your game.
6. Practice discipline.
Baseball players spend a ton of time honing their skills and perfecting their craft. Successful money management requires similar levels of discipline. Stick to a budget, try to avoid unnecessary expenses and prioritize saving and investing for your future. Discipline wins the game!
7. Adapt to change!
Baseball teams must adapt to changing game situations, opponent strategies and player injuries to stay competitive throughout the season.
With your finances, too, you must be prepared to adapt to changes in your financial circumstances, such as job loss, market fluctuations or unexpected expenses. Build flexibility into your financial plan, and learn to roll with the punches. Keep a robust emergency fund to get you through any major changes as well!
Always remember, CommonWealth One is on your team! We want the best for you, and we’re here to help you win at any age with free online resources, free financial counseling and products and services to help you achieve your dreams. Don’t ever hesitate to contact us for advice on budgeting, saving, investing, setting goals, or paying for a renovation, vacation or education! We’re easy to reach, and we're here For You, For Life.
