Financial Planning as Football

How you handle your money resembles how a manager handles his football team.

Having a good job is the same as being able to generate predictable yards, mostly on the ground. Variable work, like that done by entrepeneurs, real estate agents, that sort of thing, is the passing game. When it works, it's amazing. It does, unfortunately, have a potential for disaster. Big risk can lead to big disaster.

What you do with your money once you earn it compares to a team's defense. After all, you want to keep as much as you can. A good defense balances risky attempts at sacks and interceptions with solid fundamental football. A smart offense, and smart financial planning can maximize the benefits of your money generation (and scoring). On the other hand, it in itself probably won't make you rich. If your offense is disastrous, it can completely undermine the work of the defense.

I realize now that I need to bolster my defense a little. I have a decent ground game; my job pays well enough. My passing game is a little shaky: I do have a few extra income streams, and I believe that's the way to really win. Unfortunately, I'm still paying for the mistakes of past passing games. Analagous to interceptions run back for touchdowns, my last failed business really socked me, and I'm still paying off the credit debt.