How to Ace Managing Your Finances

As a former player and long-time fan of the game of tennis, I have been fascinated watching the resurgence of American tennis players at this year’s U.S. Open. For those who may not be as into the game, the U.S. Open is the last of the Grand Slam tournaments, the major tournaments of the sport, and some consider it to be the toughest of the majors to win. Tennis is very much a global sport, and in the past decade plus, with some notable exceptions, Americans have not been nearly as successful as they have been historically. At least for the moment, that seems to be changing. Having observed the many Americans who have done well at this year’s U.S. Open as well as some of the other top players in the game, I can see parallels between the success those players have achieved and how you can achieve success in your personal finances. So, whether you are a tennis fan, fan of sports in general, or not, in this issue of the newsletter, we will attempt to illustrate how some of the attributes of these top-level athletes can show you ways to become champions in your financial lives.

Stay Focused on the Right Things
Having played tennis since childhood but doing so many years ago, I am amazed at how the game has advanced. The power that today’s players exhibit when hitting the ball as well as the physical condition they are in is incredible. While we see them perform in tournaments when the lights are on, the work they’ve done in practicing and perfecting their craft is the key to their success. They put in lots of work in practice and training and have to believe that will translate to success on the court. An excellent example of this is first-time Grand Slam semi-finalist, 20-year old American, Ben Shelton. In his first year on the pro tour, he struggled tremendously between the first Grand Slam of the year, the Australian Open, where he made it to round 5 of 7, and the U.S. Open. Between the two events he never won two matches in a row from February to August. However, even though his work in practice wasn’t yielding victories in tournaments, he continued to trust the process and it paid off in an unlikely run in this year’s U.S. Open. Similarly, in your financial life, there may be times when things don’t seem to be progressing at the rate you would like. However, if you have a solid plan that identifies your current and desired situation and gives you a well thought out path to follow, success may be just around the corner. Rather than focusing on outcomes, which you may not have total control over, focus on taking the things you can control, taking the steps that have been proven over time, and often the outcome takes care of itself. It is also important to remember that to achieve financial success, you typically have to play the long game. As the saying goes for many difficult endeavors, it is a marathon and not a sprint. This is another characteristic you see with the most successful tennis players: endurance. A player that embodies that as much as anyone is now 24-time Grand Slam champion following his victory in the finals of the 2023 U.S. Open, Novak Djokovic of Serbia. While his talent and skill is undeniable, one of his greatest attributes is that he will outlast almost anyone he competes against, maintaining his high level of play for as long as it takes to win. In your financial life, there will be ups and downs that occur, but if you stick to your game plan, over the long run, you will tend to find success.

Think Next Play
This mantra is a common theme in sports, which essentially means don’t dwell on what has already happened, but instead move on to what’s in front of you. Whether in sports or in life, it is easy to get stuck in the past and lament what didn’t go right, but in doing so, you may miss out on the opportunity in front of you. On the tennis court, one of the best at thinking next play is Carlos Alcaraz of Spain, the #1 player men’s in the world coming into the 2023 U.S.Open. As is the case in most professional sports, all the players have tremendous skill and talent, but what separates the best players often is their approach to the game and their mentality. This is perhaps more the case with tennis, as a one-on-one sport, where you are relying on yourself rather than having teammates who can cover for you. Outside of his incredible talent, the beauty of Alcaraz’s game is that he usually plays with a smile on his face as if he recognizes it’s only a game. Even if he has made an egregious mistake on a previous point, he seems to be able to shake it off and have the confidence that he is going to win the next point. It is that kind of resilience that is also necessary in your financial life to put aside missteps that may have occurred in the past. We can all think of things we wish we had done differently, but there is no time machine that will allow you to change what has already happened. All you can do is shape the future, which may involves using lessons learned from the past, but only doing so as a way of helping you make the best decisions possible for what is yet to come. Once again, having a comprehensive plan is a major advantage, not because you expect it to predict the future accurately, but because it gives you a framework to make decisions that will help you focus on what will make the greatest impact on your future results.

Experience Matters But Isn’t Everything
In sports it is rare that someone comes out of nowhere to reach championship level. There is usually a learning curve that is required and some failures that take place to provide the lessons needed to give you the necessary experience to reach the pinnacle of success. Experience gives you a reservoir of knowledge and wisdom to draw from to help you navigate the situations you face. While that experience can provide you with the muscle memory that leads to success, it is not the only way you can get to success. Again, take 2023 U.S. Open men’s semi-finalist, Ben Shelton, as an example. In the match that put him in the semi-finals, he played against fellow American, Frances Tiafoe, a 25-year old veteran who made the U.S. Open semi-finals in 2022. On the surface, you would expect that Tiafoe had the advantage, having already achieved that level of success a year prior. However, the youthful exuberance and belief that Shelton had overcame the experience of his compatriot and “big-brother” in the sport. This is a lesson for young people or even older people who may not have had a successful track record when it comes to finances. Without question, having experience is a good thing, but not having it does not preclude you from setting your sights on big things. If you have the desire and the persistence to achieve financial success, even without the past success to lean on, you too can chart a path to make your dreams come true. Younger people or people who may not see themselves as having significant financial means may assume that planning is something that won’t benefit them. Nothing could be further from the truth. Anyone who wants to put themselves in the best financial position possible can benefit from having an organized plan of action.

Get to the Next Level with Great Coaching
It is true that tennis is a sport where you are competing head-to-head against an individual opponent, but at the professional level, every player has a team of people behind them to help them prepare, train, and execute on the court. I remember from my youth what it was like to play tennis against friends and family more for the fun of it than anything else vs. the elevation of my play when I started to receive some formal instruction from people who really knew the game. While I did appreciate the growth in my game, I wasn’t inclined to pursue the sport at a level that would have taken me into higher ranks; however, players on the professional circuit have had to make a more significant investment in order to compete at the highest level. One of the brightest young stars in the women’s game today is Coco Gauff, a 19-year old from Florida, who turned pro at the age of 15. In her first years on the pro tour, she was coached by her father, who clearly did an excellent job with her as she not only turned pro at that young an age but beat some of the best in the world. Despite the promise she has shown for several years, including reaching a Grand Slam Final at the French Open in 2022, her results were still somewhat inconsistent. Only in the last several months have the results begun to catch up with the promise in terms of consistent excellence and expectations that she is considered a mainstay as one of the best in the game, and now a first time Grand Slam Champion with her win at the 2023 U.S. Open. That leap has coincided with her making a change to her team, adding new coaches with professional experience, who have built on the coaching her father provided and made some strategic adjustments that have taken her game to a level where she is regularly competing for championships. In your financial life, it is entirely possible for you to manage everything yourself and do a good enough job to achieve your goals. However, there can also be benefit in having a team of advisors committed to your success that you can lean on to provide you with strategic advice, leveraging their knowledge and skill, that will allow you to spend more time on what you want to do, while they provide the financial knowledge and experience to help you achieve a higher level of success.

Stewardship Emphasis

Lessons that can make us better are all over the place if we are willing to look and see how they can apply to our lives.

The Empowerment Channel |Volume CCXVII | Dedicated to Promoting Financial Education through Stewardship