Comments on: 5 Personal Finance Lessons We Can Learn from the Miami Heat

By: J. Money

J. Money — Sun, 30 Jan 2011 21:37:06 +0000

I second the notion that you don’t have to budget for every single penny all the time. That’s what drives most people crazy enough to just stop doing it altogether. Should you track it all in the beginning until you get a good grasp of your finances though? Absolutely. Then once you start killin’ it you can round up or categorize more since you’re on track.

This was a great one Stu – thx again for guest posting while I was gone :)

By: Dawn Allcot

Dawn Allcot — Sat, 29 Jan 2011 16:36:52 +0000

Stu-
I agree with most of your points, especially about writing everything down, recognizing that it takes time, and acknowledging that it’s never too late to start! I never believed I had to track every penny in order to keep a good budget — but it works!

I just started budgeting this year with the help of Mint.com (You can read about my first attempts here… http://creditshout.com/tracking-debt-and-managing-my-budget-with-mint-com-month-1/ if you’re interested) and the sense of security I’ve achieved, just knowing where my money is going helps me now in every area of life!

By: Stu

Stu — Thu, 27 Jan 2011 12:47:39 +0000

@ Donny Gamble: Totally agree about the importance of defense in both basketball and personal finances.

@ 20 and Engaged: Congrats on your engagement, sounds like you and your future spouse are starting out on the same page and will make great teammates. ;)

@ MyMoneyMess: You make a valid point about budgets, my friend. As I have gained more experience with my own finances and I learn more and more what I am capable of doing within my budget or spending plan, I find I put less and less detail into my budgets. They are now more like loose plans for my money than anything else. Detailed budgets are much more useful for those just starting out or for those who don’t have a lot of breathing room; perhaps that’s why so many people start budgets, just to give them up within a short amount of time.

I guess to take the basketball analogy further, it’s okay to deviate from the game plan if you’ve got the skills and confidence to do so, but just make sure you know the how to do it within the framework of the game plan.

By: MyMoneyMess

MyMoneyMess — Thu, 27 Jan 2011 02:11:19 +0000

I completely agree on the teamwork aspect. My wife and I have always dealt with financial decisions as a team.

Persistence is also key. Learning to manage money is a skill, just like basketball and piano are skills. You don’t get good at it without practice. You don’t get good at it by giving up when something doesn’t go your way.

The one thing I do take issue with is the idea that you need to have a written budget and manage every penny you make always and forever. The amount of detail you need in a budget is in direct proportion to how close your income and expenses are as well as your experience in managing finances. Those with less breathing room or less experience will need much more detail than those with lots of breathing room and a long track record of successful financial management.

By: 20 and Engaged

20 and Engaged — Wed, 26 Jan 2011 04:10:37 +0000

#2 is definitely crucial. If you want to win, it has to be a team effort. There’s no I in team, and “me” is spelled backwards :)

By: Donny Gamble

Donny Gamble — Wed, 26 Jan 2011 01:14:02 +0000

I like the last one that you have to play defense. This is a lesson that is going to make the Heat learn the hard way.

By: Stu

Stu — Tue, 25 Jan 2011 21:14:08 +0000

@ Retirebyforty and Budgeting in the Fun Stuff:
Being in the same page should be rule numero uno, the rest doesn’t matter if your partner doesn’t share the same goals or if your not on the same page to reach your goals.

There’s a reason divorce rates are so high in our country and the number one argument revolves around $$. It’s important to be on the same page financially.
Stu

By: Budgeting in the Fun Stuff

Budgeting in the Fun Stuff — Tue, 25 Jan 2011 19:27:46 +0000

I agree with retirebyforty, team work with the right team mate is the end all, be all of finances. If my husband and I didn’t agree on our long-term goals, all the budgeting in the world couldn’t help me. :-)

By: retirebyforty

retirebyforty — Tue, 25 Jan 2011 17:20:55 +0000

Team work is extremely important in finance. Your partner can either help you or blow you out of the water. You gotta be picky and get a good team mate so the team can make progress.

Great Defense always beat Great Offense as we’ve seen from all the big games. Especially in the championship game where the team has a long time to prepare. This is especially true in personal finance. No matter how much you make, if you spend it all then you will never be able to build up your net worth. Of course it’s best to have both great offense and defense. :)