About the author: Lamar Watson, CFP®, is a Fee-Only Financial Advisor in the Washington, D.C. area that works with clients virtually across the country. Lamar's work with his clients focuses on budgeting, optimizing employee benefits, starting a family, investing, and retirement planning. Dream Financial Planning is a Fiduciary Financial Planning firm specifically designed to help individuals in their 30s and 40s take control of their finances and fulfill their dreams. Feel free to schedule a complimentary consultation to learn how we use the DREAM Financial Planning Process ™ to help our clients achieve their goals.
Did you know that investing and being an athlete have quite a few characteristics in common? They both require patience, diligence, and a willingness to keep learning. This is why athletes often make some of the most successful investors. They know what it takes to make a long-term game plan and stick with it.
These books are perfect for the athlete turned investor and help teach important lessons about both crafts.
The Champion's Mind: How Great Athletes Think, Train, and Thrive by Jim Afremow
What makes elite athletes stand out from the pack? Is it just based on skill, or is there another factor at play? In The Champion's Mind: How Great Athletes Think, Train, and Thrive, Afremow explains that raw athletic ability doesn't necessarily translate to a superior on-field experience. It's the mental game that matters the most.
The book offers helpful advice for athletic and non-athletic readers. You'll learn how to pursue long-term excellence, how to get "in the zone" and how to work as a team. These life lessons are important both in and out of the game, and can translate to a focused mindset for investing.
Winning the Money Game: Lessons Learned from the Financial Fouls of Pro Athletes by Adonal Foyle
The news is always quick to report when an athlete scores a multimillion-dollar contract or a record-breaking sponsorship deal. Unfortunately, many athletes don't manage their finances well during or after their careers, spending more than they can ever hope to make back. With careers in sports typically shorter than those in other professions, it can be difficult to adjust to the long game of retirement.
In his book Winning the Money Game: Lessons Learned from the Financial Fouls of Pro Athletes, Foyle offers essential financial management advice for athletes, their families, and fans to help them protect and keep their wealth. Even if you're not a pro-athlete, the financial lessons in this book are valuable. Foyle himself is a retired NBA veteran and offers a unique perspective on this unique financial situation.
The Mamba Mentality: How I Play by Kobe Bryant
There's no denying that Kobe was one of the best and most iconic players in the NBA and he attributed so much of his success to his discipline off the court. In his book, The Mamba Mentality: How I Play, he shares his knowledge and understanding of the game to "take readers on an unprecedented journey to the core of the legendary 'Mamba mentality.'"
To Kobe, it wasn't enough to succeed; he wanted to excel. So many lessons from Bryant's Mamba Mentality translate to an investor's approach, from his creativity to his passion and drive to always get better. Plus, the book includes stunning photographs by Hall of Fame photographer Andrew D. Bernstein, presenting a captivating and educational read. This book is great for the young basketball fans in your life to help get them started with investing.
Nudge: Improving Decisions About Health, Wealth, and Happiness by Richard Thaler
Athletes have to make good decisions on the fly, and often under immense pressure. Yet from the outside, these good decisions seem to occur effortlessly. Nudge examines how we make the decisions we do every day, from what to eat to how we invest. The book examines the biases inherent in our daily lives and how we can make better choices every day. We included this popular pick because making good decisions takes on mental strength, both on and off the field.
Thinking, Fast and Slow by Daniel Kahneman
So many of the principles that Kahneman outlines in Thinking, Fast and Slow align with the thought processes of some of the world's best athletes. In the book, world-famous psychologist and economist Daniel Kahneman explains the two systems that drive the way we think: our fast, intuitive system and our slower, more logical system. He "reveals where we can and cannot trust our intuitions and how we can tap into the benefits of slow thinking."
Whether you're a pro player or a weekend warrior, these books dive into both the physical and mental aspects of being a powerful athlete, and so many of the lessons translate to smart investing as well. Wise investing requires fortitude, tenacity, and just a little bit of luck (just like all the best games).
Dream Financial Planning Process ™
Whether you're managing student loan debt, starting a family, or considering buying your first home, the DREAM Financial Planning Process™ is tailored to the unique needs of busy professionals in their 30s and 40s. This process focuses more on short-term goals while you grow and evolve in your personal and professional life. So if you're looking for guidance on Financial Planning, optimizing employee benefits, budgeting, student loans, and managing your 401k or investments, we can help.
With uncertainty surrounding the economic stability of our country, it's okay to have fears and anxieties surrounding your own savings and investments. The most productive course of action from here is to reach out to Dream Financial Planning (or whoever your trusted advisor might be) and discuss your options. It's easy to have knee-jerk reactions when it feels like the bottom is falling out, but it is imperative to make decisions using research-backed data and a level head. If you'd like a Complimentary Review and risk assessment of your investment portfolio, feel free to send me an e-mail.
In the January Newsletter, there's a chart that shows you how often you should expect a market correction. I discuss how a Financial Advisor can help you avoid emotional decision-making with U.S. News and World Report and how to know if your Financial Advisor is the right fit for you. There's also a blog post where I share a PDF checklist, What Issues Should I Consider At The Start Of The Year 2022, to help guide you for the rest of the year. If you find any of this information helpful, feel free to sign up to receive future newsletters via e-mail.
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