If you think about the correlations between getting fit and taking care of your personal finances, there are a lot of similarities between both. By following a workout plan, you should be able to see results. Could those same characteristics be used with your finances?
Getting a Membership
Getting Fit: Often times the first step to working out is getting a gym membership; however, just because you are signed up that doesn’t mean you start getting fit. You have got to start putting the machines and resources to work.
Personal Finance: The same goes for your finance. Whether it be a bank, stock brokerage, or something, just signing up for membership and transferring some money doesn’t mean you are good to go. You have got to find places to invest or manage your money.
Creating a Plan
GF: For the best and most efficient workout, it is a must to plan out what you are going to do and what you want to work on. If you just aimlessly move from one machine to the next, then you most likely will not get the complete workout that you need.
PF: A great plan should also be put in place with your finances. What are you saving up for? When would you like to see results? How much money are you willing to invest or spend? By just throwing money into random funds or accounts, you may not see the results you want.
Unequal Distribution
GF: If your goal is to try and gain more muscle mass, then it is important to keep a balance between the upper and lower body. After all you don’t want to have toothpick legs with pumped up chest and biceps.
PF: When it comes to your finances, you don’t want to put all your money into one investment. You want to make sure that you have a balanced or diverse portfolio. For example, you might distribute money between stocks, CD’s, and saving accounts.
Remember to Stretch
GF: Depending on your age and physical condition many people can often get away with stretching for some time, but eventually it will catch up with them (I know).
PF: Many times people will try to stretch their gains. If is not broke, then don’t fix it, right? When it comes to money though, are you willing for broke to equal loss of your life savings?
Long Term Outlook
GF: By working out, you aren’t just get fit for the present, but it will also payoff in the long run with hopefully a longer and healthier life. On the other hand, if you eventually stop working out, then eventually you will lose everything gained.
PF: You followed your plan and made some great money. Now you are retired and want to put it to good use; however, no one knows how long they will live. Like working out, investing and managing your finances needs to be a life long task. If you just keep spending and stop managing, then you will lose everything you worked for prior.
Do you see any more correlations? Do you see this correlation in your own activities?