BASKETBALL FINANCE: Shoot Your Way towards Financial Success!

"I've missed more than 9000 shots in my career. I've lost almost 300 games. 26 times, I've been trusted to take the game winning shot and missed. I've failed over and over and over again in my life. And that is why I succeed." - Michael Jordan

 
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I passed by a bookstore this morning, then I saw this interesting red book:  Financial Jiu-Jitsu - A Fighter's Guide to Conquering Your Finances by Scott Ford.  Amazon.com describes it as a unique approach to personal finance that tackles money like a jiu-jitsu fighter would tackle an opponent.
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Hmm, very interesting...I said why not relate personal finance to basketball, which is still the no. 1 sport for us Pinoys....and it is and will always be "THE GAME" for me too....being a frustrated basketball superstar...(no kidding, check out my Lourdes School of Mandaluyong Grade 7 yearbook)
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According to FIBA's Official Basketball Rules 2010, "the basketball game is defined as being played by two (2) teams of five (5) players each.  The aim of each team is to score in the opponents' basket and to prevent the other team from scoring.  The team that has scored the greater number of points at the end of the playing time shall be the WINNER."
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In personal finance, the team is basically YOU....but you can have teammates too who will help you win the game...like your family (spouse, parents, kids), your banker, your accountant, your financial planner.....now it makes you think....do you need a FINANCIAL COACH in order to win this personal finance game?....or are you playing the game just by yourself?....

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Your aim is to score and accumulate as many financial points at the end of your playing or working career.....your "offensive" strategy should be either to increase your income and/or make your money work hard for you (earn you higher savings/investment returns)....are you happy with a 2-pt shot or a 3-pt shot?....this is like are you happy with low risk investments that provide low returns...or high risk investments that yield high returns.....
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Your other aim also is to prevent the "other team" from scoring....we are talking about DEFENSE here....your best defense in personal finance includes budgeting, monitoring and controlling those expenses, living below your means, avoiding credit card debt, minimizing ATM transactions.....you need a defensive specialist....would that be YOU or your WIFE?
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Each financial goal is like a basketball game or championship.....A question to ask yourself is how is your game doing in terms of the Eastern Conference final (i.e. paying off debts, saving for that dream house and car), the Western Conference final (i.e. saving up for children's college education) and finally, the NBA Championship (i.e. saving up for your retirement)

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Please watch out for more basketball finance soon...

Hope this helps.


Ge


Gerald Cantor is a Registered Financial Planner graduate, a Certified Public Accountant and a Certified Internal Auditor.  He is also a Financial Consultant of Pru Life UK.  Ge is proud to be an ex-OFW, a "career-shifter", a "high-leaping" baller, a newby entrepreneur and most importantly, a "dedicated" dad of Gia (4yo) and Clarie (2yo).