Financial Planning Lessons From The Olympics

"Focus, discipline, hard work, goal setting and, of course, the thrill of finally achieving your goals. These are all lessons in life." -Kristi Yamaguchi, gold medallist in figure skating in 1992

The Olympics are with us again! It's that time every four years where we stay up late (or get up early) to watch some of the best sportsmen and women compete against each other across a range of different sports.

I don't know about you, but I always seem to end up watching some obscure sports that I usually have no interest in, just because "it's the Olympics"!

As I was watching the swimming a few nights ago, I began to think about how the Olympic athletes can teach us some valuable lessons about finance.

Training and Preparation - most athletes have spent years training for their events. They didn't wake up one morning magically transformed into an Olympian. It took time. It's similar with your financial plan - changes won't instantly happen, but instead you'll begin to see gradual improvement over time. You need to be patient, but still put in the hard work.

Sacrifice - I'm glad my sons don't want to be swimmers because I'm not sure I could cope with the early morning training sessions! But every athlete has had to make sacrifices in the short term in order to excel. When it comes to money, there's no such thing as a free lunch. You need to make sacrifices in the short term in order to be better off in the longer term.

Having Clear Goals - Top athletes and sportspeople have very clear goals. Their training is structured to give them the best chance of achieving those goals. We can all learn from their example. In my experience the number one reason people don't save for their future is that they don't have any clearly defined goals to work towards. One of the most effective things you can do today is spend ten minutes writing out a list of goals you'd like to achieve.

Practicing the Right Things - Just practicing a particular sport doesn't guarantee you'll get better at it. You may be practising the wrong thing! This is why sportsmen and women all over the world seek out and learn from the best coaches. When it comes to finances, it's possible to be doing the wrong things and not know about it until it's too late. Are there better ways to save for your future? Possibly? But you won't know unless you seek out an expert.

Enjoy the Moment - I can't even begin to imagine what it must feel like to compete in an Olympic event. But from what I've seen on TV and read, it's an amazing experience. Many athletes say that it's a bit of a blur, and you need to make a conscious effort to acknowledge where you are and to enjoy the experience. Our lives are like this. We can get so busy and focussed on doing things that we forget to enjoy the moment. It's got nothing to do with money - it's all about being present and enjoying your life for what it is, not what you want it to be.

"Too many people spend money they haven't earned, to buy things they don't want, to impress people they don't like." - Will Smith

Achieve Your Personal Best - Why would you bother swimming 100m if you can't do it as fast as Michael Phelps? Because for 99% of swimmers, beating Michael Phelps isn't the goal. The goal is to be the best swimmer they can be, based on their bodies, fitness and level of training.

This is especially true when it comes to money. We need to stop measuring ourselves against other people, and start doing the best that we can with the resources we have.

We're all at different stages of life and everyone has a unique financial story to tell. The key is to manage what you have to the best of your ability. In order to do this you may need to invest a bit of time into learning more about your options and you may even need to make some small sacrifices today so that you don't need to make big sacrifices later.

The End Game - Making A Difference

When you're 90 years old and look back on your life, you'll probably want to feel like you've made a difference.

I'm sure there are things in life that you want to experience and achieve, both for your own benefit and the benefit of others. I'm sure you want to have that feeling long after you're gone from this earth, that bits of you live on in the form of knowledge or experiences or memories that are passed on to others.