Welcome to the Financial Baseball website. Here you will learn money lessons from the game of baseball. The music video is a tribute to Mickey Mantle, one of greatest baseball players of all time. Below is the free book "Money Lessons Learned From The Game of Baseball".
And here is the link to a Free financial education audiobook produced by Al Young: https://financialeducationusa.podbean.com/
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Al Young
Financial Teacher and Financial Author
Phone: (520) 338-1004
Website: https://alyoung.net/
Money Lessons Learned From The Game of Baseball
You can learn a lot about your personal finances from the game of baseball.
1. Three Strikes, You’re Out
In baseball, if you get three strikes, you’re out.
Missing a credit card payment is never a good idea, but it happens sometimes with all of the chaos life throws at us. This is usually why creditors will charge you a late fee if you make your payment within 30 days after your payment is due. But after you miss your payment for three months? Creditors are usually done giving you any more chances, and your debt is often turned over to a debt collector. In other words, after three months of no payment, you’re out as a customer.
A word of caution, some creditors will terminate your account around 30 days, while others will give you up to 150 days. The best practice is to pay on time every month and to set up automatic recurring payments for at least the minimum payment amount if you’re prone to missing payments. This is a strategy designed to keep you from striking out.
2. Baseball, like Paying Off Debt, is a Long Game
Unlike football, basketball, or soccer, where there is a timer counting down the seconds left of game time, how long a baseball game lasts depends on how the players are playing the game. If the pitcher is striking out every batter, the game can wrap up rather quickly. But if the batters are on a hot streak and are getting base hits and home runs, the game is going to run longer.
Same with a debt payoff journey. If you are strictly following your budget, it’s likely you’re going to knock out your debt sooner than later and wrap up your debt payoff journey in a shorter timespan compared to those who are looser with their budget and allowing themselves to indulge in some splurge items every month to treat yourself for having to deal with debt, to begin with.
3. Paying Attention to What Others Have Can Cost You
You may have budgeted for a hot dog and a cold beverage to enjoy during the baseball game. But when the person next to you comes back to their seat with mini donuts and nachos, the person in front of you orders a frozen lemonade, and you make eye contact with a concessions employee slinging churros, it’s easy to convince yourself that just this one time, it’s ok to go over budget.
But as anyone who has either drank too much at a baseball game or someone who has kids who can spot the cotton candy bags from a mile away knows firsthand, all of these extra snacks add up. And before you know it, you’re wondering how you spent so much money and went so much over your budget.
The lesson learned here is to avoid temptation by coming up with a plan ahead of time and sticking to it. If the nachos look too good to pass up, determine the cost and add it to your budget for the next baseball game you attend, and avoid eye contact with the concessions employees slinging the delicious treats in the same way you would hide ads or at least temporarily unfollow social media accounts that make you feel like you have to have x, y, and z, in order to be happy.
4. The Baseball Season is Lengthy, Just Like Your Financial Journey
Every baseball team loses a game now and then because the baseball season is so long. So while you may get upset when your favorite team loses a game or two, it’s important to keep in mind that you don’t need a perfect record to make it to the World Series.
Your financial journey is similar. There will be times when you have more expenses, including unexpected expenses, that make it more difficult to save money or pay off credit card debt. So instead of beating yourself up and feeling like a failure, it’s important to keep the big picture in mind and not get overly emotional when you make a financial mistake or incur a financial setback on your debt payoff journey. Keep your eyes on the long-term financial goals, and in the end, you’ll win big and celebrate your debt-free championship.
5. Team-Branded Fashion Can Cost You
When going to any athletic event, fans typically wear their team’s colors to show their support. And there’s no easier way to show team pride than to rock a team-branded baseball jersey or t-shirt. If you plan ahead and are attending a local team’s game, you may have luck buying team-branded fashions at a reasonable price at a second-hand retailer or a more affordable retailer like Target. But just like it’s tempting to want to buy the snack that the person next to you has in the stadium that left you drooling, it can be tempting to buy new merchandise in the stadium, especially if you see something that is only available in the stadium, is limited edition, or there’s only one left in the color you love.
As hard as it may be to wait, it’s good to get in the financial habit of waiting to buy “want” items and not allowing ourselves to allows give in to impulse purchases. This not only allows you a chance to save up for the item, but you may find that same item for sale on your team’s website on sale. Or better yet, you may find something else you like even more and will be glad you waited so you could save and buy something that will last longer and you’ll enjoy more.
6. Mistakes Happen, But Limit Your Errors
No one’s perfect, neither in baseball nor when it comes to money. There are many things you can do wrong to send your financial planning off the rails. With baseball and with your money, it’s important to play smart because frequent errors can mean the difference between winning and losing. In baseball, players want to catch the ball and throw it accurately, as bad throws can cost you a run or two. Batters want to avoid swinging at bad pitches so they don’t strike out unnecessarily. And pitchers want to avoid walking in the winning run by throwing strikes instead of balls or even hitting the batter.
Your finances are similarly vulnerable to mistakes, which is why it’s important to establish a budget or a game plan, so that you don’t buy things you can’t afford, you’re not investing in things you don’t understand, and you’re not raiding your retirement funds without understanding the consequences.
7. Motivational Music is Key
Have you noticed that before every player steps up to home plate to bat, there’s a song that plays? The song is different for every batter, but the song usually repeats every time that particular player is up to bat. It’s called an at-bat song, and the thought behind the music is that when a player hears a song they like, it can calm them down, help them clear their mind, let go of some nerves, and focus on hitting the ball out of the ballpark.
On a debt payoff journey, listening to music can also motivate you to keep going during challenging money moments, calm you down, and focus on knocking your debt out of the park. Music can also be used to celebrate victories you experience on your debt-payoff journey.
8. Small Victories Are Just as Great as Large Ones
When your team hits a home run in baseball, it’s really exciting. But not every game is won because of home runs. In fact, most games are won because a team is hitting singles and doubles, which allows them to slowly and steadily get on base and knock in runs.
The same is true for your financial goals. It would be nice to knock out debt in one quick, swift payment, but that rarely happens. Most debt is paid off, and most savings accounts are established by slow and steady, regular payments.
9. Keep your eye on the ball.
This is as basic as it gets, but it's important. If you don't pay attention out there, you're not even going to get your bat on the ball. With your finances, you should also establish a main focus that can guide your other actions. Start off by asking yourself what your top money priorities are. These could include paying off your debt or saving up for a mortgage. Once you have your priorities established, you can then figure out how to budget and spend.
Consider holding yourself accountable by writing down your key priorities and tracking your performance on a monthly basis. Money management tools can help you outline specific savings goals, help you track and manage your loans, nd offer a helping hand as you work toward your financial goals.
10. Striking out doesn't necessarily mean you're out of the game.
Nobody wants to strike out, but there's usually a shot at redemption. Next time up, maybe you'll even hit a homer. Striking out in your finances doesn't feel great either. Whether you've missed a credit card payment, had a bill get sent to collections or filed for bankruptcy, you might feel like you've done irreparable damage to your credit. But even here, you can turn things around.
It might start with asking for help -- perhaps from trusted friends, family or financial professionals who can help you establish a game plan for getting back on track. If your credit has taken a hit, you can work toward rebuilding it through small steps, such as paying your bills on time every month, checking your credit report for errors and limiting the number of hard inquiries on your report. Being patient is key. Derogatory marks should eventually fall off your credit report.
11. You don't have to swing at every ball that comes your way. When you're at bat, you probably want to be selective. A fastball over the heart of the plate? Let it rip. But a slider down in the dirt? You might want to keep that bat on your shoulder. Similarly, not every financial offer that comes your way is going to be the right fit for you, and it's important to exercise good judgment rather than going for the first one you see.
For example, if you habitually carry a balance on your credit card, choosing to apply for a rewards credit card with an appealing sign-up bonus but a 20 percent APR may not be a great fit, as your interest payments could really add up. On the other hand, a balance transfer credit cardtahe that offers a zero percent introductory APR for 12 months or longer might be a better fit for you, so you can work off towards paying off your credit card balances interest-free during that period. It's important to weigh your options for financial products and assess what suits your needs, even if this requires additional time and patience.
12. Get ready for unexpected bounces.
You're out there at shortstop, watching a ground ball roll your way. You're crouched and ready when the ball hits a rough patch on the infield grass and jumps up toward your face. Are you prepared to adjust? Adaptability is key. Adaptability is equally important to manage your money effectively. Unfortunately, unexpected events, such as a medical emergency or job loss, can take a toll on your finances. When something like that crops up, you may have to alter the way you're managing your money.
One thing that can help with this is setting up an emergency fund, which is a pool of savings that you set aside for financial setbacks. Preparing proactively can help save your finances from going under when a difficult time hits.
Even if you have an emergency fund, being flexible with your money management can still go a long way. During challenging financial circumstances, you could try to earn extra cash through getting a side job, or you could cut back on spending by eating out less.
As in baseball, succeeding in your finances comes down to dedication, practice and a refusal to give up. You might not be a baseball star, but when it comes to managing your money, there's no reason you can't knock it out of the park. If you learn anything about your finances from baseball, it should be that planning and adjusting are the keys to success.
13. Sometimes You Need to Proceed One Base at a Time
There’s nothing like seeing a home run light up the scoreboard, but games are often won by singles and doubles that get runners in scoring position through a series of base hits. The one base at a time approach takes discipline, something that you can apply to your finances by putting together a financial plan. What are your financial goals? Do you know how much money comes in, and how much goes out? Are you saving regularly for retirement or for a child’s college education? A financial plan will help you understand where you are now and help you decide where you want to go.
14. It’s a Good Idea to Cover Your Bases
Baseball players minimize the odds that a runner will safely reach a base by standing close to the base to protect it. What can you do to help protect your financial future? Try to prepare for life’s “what-ifs.” For example, buy the insurance coverage you need to make sure you and your family are protected–this could be life, health, disability, long-term care, or property and casualty insurance. And set up an emergency account that you can tap instead of dipping into your retirement funds or using a credit card when an unexpected expense arises.
15. You Can Strike Out Looking, or Strike Out Swinging
Fans may have trouble seeing strikeouts in a positive light, but every baseball player knows that striking out is a big part of the game. In fact, striking out is much more common than getting hits. The record for the highest career batting average record is .366, held by Ty Cobb. Or, as Ted Williams once said, “Baseball is the only field of endeavor where a man can succeed three times out of ten and be considered a good performer.”
In baseball, there’s even more than one way to strike out. A batter can strike out looking by not swinging at a pitch, or strike out swinging by attempting, but failing, to hit a pitch. In both cases, the batter likely waited for the right pitch, which is sometimes the best course of action, even if it means striking out occasionally.
So how does this apply to your finances? First, accept the fact that you’re going to have hits and misses, but that doesn’t mean you should stop looking for financial opportunities. For example, when investing, you have no control over how the market is going to perform, but you can decide what to invest in and when to buy and sell, according to your investment goals and tolerance for risk.
With investing, you can wait for the right pitch. What’s nice about investing is you don’t have to swing at pitches. You can watch pitches come in one inch above or one inch below your strike zone, and you don’t have to swing. No umpire is going to call you out. You can wait for the pitch you want.
16. Every Day Is a Brand-New Ball Game
When the trailing team ties the score (often unexpectedly), the announcer shouts, “It’s a whole new ball game!” Or, as Yogi Berra famously put it, “It ain’t over ’til it’s over.” Whether your investments haven’t performed as expected, or you’ve spent too much money, or you haven’t saved enough, there’s always hope if you’re willing to learn both from what you’ve done right and from what you’ve done wrong. Every day is a new opportunity. You can build on yesterday’s success or put its failures behind and start over again. There is a new game game every day, and that’s the way baseball is.”
And don’t forget the hot dogs. ...