The economy continues to behave in maddening ways. Inflation and interest rates remain high, stock values languish well below their peaks, businesses struggle to find workers, and more. It all adds up to a period of great financial stress and uncertainty. Given the time of year, do we dare call it … March Madness? Since much of the country will be obsessed with hoop this month, we thought we’d consider how some principles of basketball success can also apply to your finances. While you’re filling out your bracket and cheering on your favorite teams, here are some ideas to keep in mind. The economy continues to behave in maddening ways. Inflation and interest rates remain high, stock values languish well below their peaks, businesses struggle to find workers, and more. It all adds up to a period of great financial stress and uncertainty. Given the time of year, do we dare call it … March Madness? Since much of the country will be obsessed with hoop this month, we thought we’d consider how some principles of basketball success can also apply to your finances. While you’re filling out your bracket and cheering on your favorite teams, here are some ideas to keep in mind.
Take advantage of the jump.
Interest rates for high-yield fixed-rate products like CDs and Money Market accounts have jumped quite a bit lately. Consider how these products can benefit you right now. They can be a great way to earn guaranteed returns while protecting your principal – proving that high-interest rates can have an upside too.
Don’t get too far behind.
Debt can be a real budget buster, and make your life miserable if it spirals out of control. So make sure your bills are up to date, your credit card balances are modest, and you’re living within your means. If you have a high level of debt, make a plan to chip away at it and definitely avoid taking on more.
Be coachable.
A good coach can help you shore up weaknesses and maximize your strengths. So if you have financial questions or are unsure about what actions you should take, get some coaching. Working with an investment advisor, personal finance expert, and others can help you make informed decisions and get on track.
Play strong defense.
If you don’t have an emergency fund, start building one now. It will help you be prepared for any unpleasant surprises that life may throw your way, such as a job loss, illness, or major repair project. Ideally, you should have enough to cover household expenses for several months or more.
Avoid excessive dribbling.
By this, we mean money that’s dribbling out of your household budget on things like cable channels you never watch, services you never use, and so on. Take a good look at your expenses and trim where you can. For the things you can’t do without, contact providers to see if they can reduce your costs.
Know the score.
Take a few minutes to check your credit score. It’s important to know how you’re doing, especially if you might need to borrow money in the near future. It‘s also good to identify any information on your report that may be inaccurate or incomplete, so you can clear it up before you apply for a loan.
Don’t be one-dimensional.
Many investors make the mistake of putting all their eggs in one … wait for it … basket, such as cash or company stock. If that describes you, consider diversifying your strategy to include a mix of stocks, bonds, and cash. It can help you meet your long-term objectives and weather the market’s ups and downs.
Adopt healthy habits.
On the court, the healthier team is usually the one that wins. Off the court, one’s health and financial stability are also often correlated. Learn more about the health-wealth connection here.
With sports, chaos and unpredictability are part of the fun. With your personal finances, not so much. So focus on the things you can control, and try not to worry about the things you can’t. Know that in life, as in basketball, every single victory will bring you closer to your ultimate goals. And, by all means, do your best to enjoy the Madness.