Last year, I started to take golf lessons. Golf can be so much fun, and the landscape is amazing, but when it doesn’t go as planned, it can be frustrating.
I notice parallels between learning to golf and sticking with a financial plan. Both take discipline, practice, stretching muscles you’ve never used before, and being able to visualize the near future.
Visualization is a technique where golfers create a mental image of their swing and what they want to achieve. Keep my head down, see my left shoulder, left arm straight on the back swing and follow through to the target! Seeing the target is a great tool to achieve strong financial health too.
For example, one of my clients was gifted a down payment for a new home. With current high home prices, even a gift of a down payment, there is still work to do to make sure the home is affordable. We modeled various home buying budgets, settled on a price range, and found she must allocate $3,000 per month for her mortgage, insurance, and property tax.
We evaluated spending in every category. She was spending $2,000 for rent and $1,500 on entertainment (dining and drinking out). We worked together to model spending less on entertainment so she can comfortably afford her monthly mortgage payment.
She is now practicing spending only $500 monthly on entertainment and setting aside $3,000 monthly for housing. Visualizing herself in a beautiful new home keeps her motivated. Plus, while still renting, the $1,000 goes to a house savings account.
Also, I tell all first-time homebuyers a strong savings account is needed for maintenance and upgrades. Longtime homeowners know those projects! Much like golf, with enough practice, one learns of the need to build muscles in your back to support a strong core. Financial planning helps build a foundation for a successful financial future.
I look forward to celebrating with a few clients as they achieve their dream of home ownership this year! So much is available to us, with a lot of practice, determination, and imagination. I will keep practicing! ⛳
