Top 10 Ways Managing Your Money Is Just Like Riding a Bike


An avid cyclist and bike racing fan, I sit transfixed during the many hours of Tour de France coverage every July when the race rolls around. This year, during some of the less-than-scintillating early miles of the sprint stages, my mind wandered a bit, and it occurred to me that there are some interesting parallels between winning the Tour de France and winning at personal finance.

Having watched Lance Armstrong pull off the win for 7 years in a row, I've compiled this list of the Top 10 Ways Managing Your Money Is Just Like Riding a Bike:

1. If you take safety precautions (e.g. helmet/emergency fund), you'll feel a whole lot more relaxed and confident on the journey.

2. The better prepared you are, the greater your chances of succeeding. It's important to learn from the past, but you must also scout out the road ahead and evolve with the constantly changing environment.

3. Crashes happen. The actions of other participants, bystanders, and the media can sometimes distract you from your goal. If you expect the unexpected and are able to respond with a level head, you'll be better off.

4. If you take too many unnecessary risks, you might end up out of the race, and sometimes it can take quite a while to recover.

5. But you'll probably have to take at least some calculated risks to come out ahead. For example, you might improve your performance by using cutting edge products, e.g. ultra-light wheels for big uphill climbs or, in the financial world, Health Savings Accounts (HSAs.) But you also make some tradeoffs, e.g. less stability going downhill or, with HSAs, penalties if you withdraw the money for something besides health care.

6. There will be rainy days, and there most certainly will be ups and downs. The one who weathers the tough days the best usually comes out ahead in the end.

7. You don't have to come out on top ("beat the market," so to speak) every day - or any particular day, for that matter - to win the overall race, the race that really matters.

8. You can go a lot farther if the team you surround yourself with has skills, experience, a well-defined goal, and the right motivation.

9. Even if you start at a huge disadvantage, you can emerge victorious if you have the right attitude, understand the rules of the game, and persist despite setbacks.

10. A little bit of luck never hurts!

So the next time you're in doubt as to which road to take on your personal financial journey, consider looking to the peloton for guidance and inspiration. Whether your goal is a yellow jersey on the Champs-Elysées in July or a secure retirement, there's a surprising amount to learn from watching a bunch of bike racers circumnavigate France. Congratulations, Lance!

Sherrill St. Germain
New Means Financial Planning
Principal
P. O. Box 666
Hollis, NH 03049

(603) 465 3485
sstgermain@newmeans.com
http://www.newmeans.com

Member, Garrett Planning Network - http://www.garrettplanningnetwork.com

Offering financial planning on an hourly, as-needed basis...
No product sales! No commissions! So you're assured of unbiased advice.

MORE RESOURCES:
RELATED ARTICLES
Succession Planning
Have you ever thought about what you are going to leave your children when you pass from this earth? Wouldn't it be a great feeling to be able to give them a really good head start in life - without actually spoiling them?It really doesn't matter how old you are, it's something that you need to be thinking about and planning for now. In the process of planning your inheritance and blessing your children, you are really making YOUR life better and more financially secure because you'll enjoy these benefits before you pass them on.
Risky Business: You May Not be as Daring as You Think
I thought I was through with exams when I finished college. Then my financial adviser (a.
UK Parents Inactivity Harming Their Children's Future University and Mortgage Savings
The British government at the beginning of this year officially launched its Child Trust Fund (CTF) initiative in an effort to encourage parents and children to develop the savings habit and to teach children the value of saving their own money.Chancellor, Gordon Brown said, "The Child Trust Fund is designed to ensure that every child in our country has assets and wealth and that no child is left out and all children in Britain have a stake in the wealth of the nation".
How to Save Money in a Grocery Store
Now there are ways to save money in the grocery store, and they may or may not take much effort on your part to learn some great ways to save money. Your greater savings can often be found in the perishable departments of a grocery store.
Estate Planning Basics
You have probably accomplished a great deal with your life. Over the years you have worked, planned and saved.
Understanding and Controlling Your Finances
Have you ever wondered what it would be like to be able to have complete control over your finances?If you are like most normal people, you have a job. You go to your job every day.
Adverse Debt Levels Blight UK Consumers Personal Finances
Debt levels are at an all time high in the UK. The younger generation tend to be feeling the pinch the most, but parents are increasingly being required to bail them out, often at great expense to their own limited mortgage or retirement savings.
Kundalini Lessons - Money
I've been going through and interesting growth period lately that I thought I'd share, as some of the lessons were pretty profound (at least for me).I've written before about my awakening and the joys and tribulations since, and I've also mentioned that it's an ongoing process which, as far as I can tell, doesn't really end til you shuffle off this mortal coil.
Save Money on Gas
Gas prices have soared to unimaginable heights of late. Since most of us are not likely to turn to bikes or horse-drawn buggies we will have to learn to get the most from our gas dollars.
Planning Ahead with Your Finances
If you, like most people, have not seriously considered what steps you should take for planning your finances and are now planning on buying a house, getting married or having children, you will do well to read David Chilton's book 'The Wealthy Barber'.It will not matter if you have never heard of a mutual fund or even balanced your checkbook.
Identity Theft - More Tips on How it Can Be Avoided
Recent security breaches at several credit card companies continue to worry Americans, as stolen financial information can lead to identity theft. Identity theft occurs when someone obtains your Social Security number and/or other vital information and uses it to pose as you.
Single Mother and Learning how to Save
Saving may seem easier if you were saving for a new car, or a vacation however when it comes to saving in general it may prove to be more challenging because you may not necessarily feel you are receiving a reward from it. However saving pays off, especially as a single mother.
Banks Are More Than Just A Place To Park Your Money
If you've been to a shopping mall lately, you've probably discovered two different banks within a few feet of each other. Go inside the food store in that shopping plaza and you'll see yet another one, just waiting to offer their services to you.
Do You Know What Tomorrow Will Bring?
I've been sharing the following idea with people for a few years now, and realized recently that I had never written specifically about it. So here it is:"I cannot predict the future.
Portfolio Planning can Lead to Irreconcilable Differences
The judge had to ask the question, and we had to answer it in order to get our divorce finalized. It was all supposed to be pro-forma.
College Expenses: Seven Ways to Save on an Education
Many people graduate from college owing thousands of dollars in student loans. It isn't uncommon for students to graduate owing $30,000 to $40,000.
Save Money on your Clothing Budget. Tame the Closet Monster!
Reducing the clothing budget was a serious challenge for me. Two pre-teen girls and a teenage girl certainly didn't make life any easier.
Honor Those Who Serve with Checking Account Supplies
Our global society has had a wake up call in the last five years regarding our safety. But there are those in our communities that fight to keep us safe from day to day.
Government Grants - Beware of Scams
As the saying goes: "Buyer Beware". If you see ads claiming you qualify to receive a "free grant" for education, to start a home business or to payoff unpaid bills, be wary.
Bankruptcy Chapters Explained
Chapter 7The potential chapter 7 debtor should understand that a straight bankruptcy case does not involve the filing of a plan of repayment as in chapter 13, but rather envisions the bankruptcy trustee's gathering and sale of the debtor's nonexempt assets, from which holders of claims (creditors) will receive distributions in accordance with the provisions of the Bankruptcy Code. Part of the debtor's property may be subject to liens and mortgages that pledge the property to other creditors.