The frenzy of March Madness is upon us! While your co-workers are busy building their brackets and cheering on their teams, you can use this time to up your financial game.
Financial professional Dean Listle from Secure Retirement Solutions joins us to explain the Final Four money lessons that March Madness can teach us.
Listle said filling in the blanks on a bracket is actually surprisingly similar to an important financial tool - a budget. A budget is the backbone of your financial plan - you need to keep track of how much you are spending and make sure it's less than your income.
Just like you weed out the teams you don't think will make the cut in your bracket, in a budget, you're weeding out the expenses that won't make the cut.
Your budget can get busted, too - by an unexpected emergency, like a car breaking down or a trip to the emergency room. Unfortunately, most Americans aren't prepared for a financial emergency. More than 60% would have to borrow from friends or family or use their credit card. Listle said even though you can't prepare for a bracket buster, you can prepare for a budget buster by building an emergency fund. He recommend his clients keep a separate account with 3-6 months of their income saved so they're ready for the unexpected.
Just like you're building your bracket with the championship in mind, you want to think about your endgame when you build your financial plan. Some people want to relax, play golf and cards. Others want to travel the world and see the Grand Canyon, the Eiffel Tower and the London Eye. Think about your dream retirement, and talk it over with your spouse. It'll be easier to stick with your financial plan now if you know your goals and can look forward to them.
