No matter where you are in your journey to financial freedom, a budget will help elevate you to a higher level of financial understanding. By calculating a budget and determining your monthly or yearly goals you can create benchmarks to measure your path to success.
Now that basketball season is in full swing, there are many comparisons to the sport that can apply to building your own personal budget. From knowing when to pass an expense, to hitting a three-pointer with an unexpected bonus, budgeting is a lot like basketball. Learn how to win at structuring your finances with this helpful game plan from Putnam Bank.
Brush up on your coaching.
Every team is built around the choices of its coach, just as your budget is. The coach selects the players based off merit, potential, and cohesiveness to create a well-rounded team structure. You decide what direction your budget will take you. If one piece isn’t working the way you desire, then it is your responsibility to make a change.
Recruit your team.
Every team has three key player types, centers, forwards, and guards. The center is going to be your all-around player in the middle of all the action just like your income. In your budget, this income is going to be after both taxes and your designated savings, this is your center player. Now those savings, giving you a financial buffer, are acting as your guard. Whether it’s a retirement savings, emergency fund, or personal investments, your guard player covers it all. Something additionally has to be driving your budget to financial success, and that is where your forward comes in. Spending is the determining factor to the successfulness of your budget. Just as in basketball, if no one takes the ball up the court, then there is no potential to score. By managing your spending, you create momentum through your forward player to move your money in a positive direction.
Keep your elbows in.
Every game comes with rules to keep the players safe. Staying within these guidelines will help protect you from receiving any of the following unwanted fouls in the realms of finances.
Foul 1: Spending more than you earn. Penalty: Paying interest and losing savings capabilities.
Foul 2: Not having a savings plan. Penalty: No structure for emergencies or retirement.
Foul 3: Carrying bad credit. Penalty: Added obstacles in gaining financial freedom.
Just as in basketball, practicing the fundamentals will push you to better your skills. If you work to create a successful budget based on what you can afford, your consistent monthly expenses, moderated spending, and a sound investment plan, you will be a winning coach in no time.
Starting a savings account with Putnam Bank is the ideal first play to get you on track to success, call 1-800-377-4424 or stop by a branch location today to find the best account type for you and your family!
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