Yahoo Finance How Managing Your Money is Like Playing Baseball
This year's World Series kicks off on Oct. 25, and we'll soon know which two teams are facing off.
Whether you're a baseball aficionado or can't tell one end of the bat from the other, you might be interested to learn that you can apply some fundamentals of the sport to money management.
As we near the start of the Fall Classic, familiarize yourself with these four baseball lessons that can help you hit a home run with your finances.
1. 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 (or a few) that can guide your other actions.
Start off by asking yourself what your top money priorities are. These could include paying off your student debt or saving up for a mortgage. Once you have your priorities established, you can then figure out how to budget and spend.
[See: 8 Personal Finance Myths Money Experts Want to See Disappear.]
Consider holding yourself accountable by writing down your key priorities and tracking your performance on a monthly basis. Money management tools, such as SmartyPig, which can help you outline specific savings goals, then set up automated transfers from your bank account, or Earnest, which can help you track and manage your student loans, can offer a helping hand as you work toward your financial goals.
2. 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.
Ultimately, being patient is key. Derogatory marks should eventually fall off your credit report. A bankruptcy will take about 10 years to disappear from your report, while collections or tax liens will take about seven years.
3. 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 card 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.
[See: 11 Ways to Save Time and Money.]
4. 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.
[See: 8 Big Budgeting Blunders -- and How to Fix Them.]
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 hustle, such as driving for Uber or Lyft, 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.
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