7 Financial Lessons You Can Learn from Baseball
Batter up – it’s baseball season! Time to polish that mitt and get the old pitcher’s arm warmed up for some heated games. But there’s so much more you can learn from baseball than the tricks to throwing that perfect curve ball or hitting a grand slam. America’s national pastime can actually teach you valuable lessons in money management as well. Let’s take a look at seven financial lessons you can learn from baseball.
1. Three strikes, and you’re out
We all drop the ball sometimes, but you only have two chances to make mistakes before the consequences become dire. For example, missing one or two credit card payments isn’t the end of the world. You’ll need to pay a late fee and your score will probably dip. However, missing three months of payments can have a far more significant impact on your financial health. First, creditors will likely hand over your debt to a debt collection agency. Your score will likely plummet. Lastly, many creditors will terminate your account after three or more months of missed payments.
Don’t miss those credit card payments. Three strikes, and you’re out!
2. Singles and doubles can help win the game
Everyone would love to play or watch a game where your team only hits homers, but that never happens. Don’t throw in the towel when you only hit a single or a double – those can help win the game, too.
When it comes to money, every dollar saved and earned adds up. Don’t fall into the mistake of thinking it only pays to save big bucks. Every little bit can help you build your nest egg and reach your financial goals. Earning money works the same way, with side hustles that bring in extra pocket money making a real difference to your monthly budget.
Aim for the home runs, but remember that singles and doubles can help win the game.
3. It’s a long season
It’s easy to get disheartened after a long game, but nearly every team will have to pick themselves up and get back in the game after a loss. The best way to keep your spirits up after losing a game is to remember that it’s a long season and your team can turn things around to win other games – and maybe even take the championship.
The same holds true for your finances. You likely won’t experience ongoing financial success without having a setback or two. Your investments may plummet, you can lose a job or face a surprising expense. Don’t let these difficulties take you out of the game!
Remember: it’s a long season and you can always rally from a loss or losing streak.
4. Strike out swinging
In baseball, you can strike out by sitting out a good pitch that hits the strike zone, or by trying to hit a ball and missing. In fact, Ty Cobb, who holds the highest career batting average of all MLB players in history, had a .366 batting average. This means he got a hit in just 3.5 of every 10 at-bats. This tells us that even the best baseball players miss about twice as many opportunities as those they don’t.
Finances work in a similar way. You may miss more at-bats than you hit, but you’ll only see true success if you swing at that ball. Look for investment opportunities, avenues for career growth and other ways to improve your financial circumstances.
Keep trying, and you may just turn out to be the best player on the field.
5. Know your stats
As Billy Chapel (played by Kevin Costner) says in the movie, “we count everything” in baseball. Among those many things, players carefully track their performance metrics, like their batting average, on-base percentage and earned run average. This allows them to gauge their effectiveness on the field and find their weak spots. They can then identify the areas needing improvement and focus their training on improving their game in a targeted manner.
Similarly, ignorance is never bliss when it comes to your finances. Make sure you are fully aware of your financial stats, such as your net worth, credit score and debt-to-income ratio. This will enable you to keep on top of your financial health, find your weak spots and work on improving them before they spiral out of control.
Know your financial stats so you can play your best game.
6. Practice discipline
Baseball players spend an inordinate amount of time honing their skills and perfecting their craft. This enables them to perform at their best when it matters most. All of that training really pays off when they make the hit that wins their team the game.
Successful money management requires similar degrees of discipline and commitment. Stick to a budget, try to avoid unnecessary expenses and prioritize saving and investing for your future. By staying disciplined and focused on your financial objectives, you can build a solid foundation for long-term financial success.
Discipline wins the game!
7. Adapt to change
Baseball teams must adapt to changing game situations, opponent strategies and player injuries to stay competitive throughout the season.
With your finances, too, you must be prepared to adapt to changes in your financial circumstances, such as job loss, market fluctuations or unexpected expenses. Build flexibility into your financial plan, and learn to roll with the punches. Keep a robust emergency fund to get you through any major changes as well.
Learn to adapt for ongoing wins.
Baseball is so much more than just a fabulous springtime sport. Use this guide for important financial lessons you can learn from baseball.