The Playbook for Financial Wellness

With the return of fall it is hard not to think of high school Friday Night Football. Bands are playing, pads are popping, and the drill team and spirit squads are prepared to keep the fans excited during the games. Football is also a great analogy for how to take care of your own financial wellness. As a School Superintendent, you’re skilled at leading teams, strategizing for success, and making crucial decisions.? However, when it comes to personal financial wellness, it’s time to shift from being the quarterback on the field to being the coach that assembles the team and provides the goals for the season. Your goal is to lead your financial team to victory by planning effectively, managing resources wisely, and making strategic adjustments.??

1. Game Plan: Setting Personal Financial Goals?

In football, a game plan is essential for success. Similarly, a solid financial plan is your game plan for personal financial wellness. Start by setting clear, achievable goals:?

• Short-Term Goals: Think of these as your first downs. Examples include building an emergency fund, paying off high-interest debt, or saving for a family vacation.?

• Long-Term Goals: These are your touchdowns. They might include saving for retirement, paying off your mortgage, or funding your children’s education.?

Just as a coach develops a strategy for different game scenarios, outline your financial goals and the steps needed to achieve them. Just like you would for your school district, make sure your goals are Specific, Measurable, Achievable, Relevant, and Time-bound (SMART).?

2. Building a Strong Offensive Line: Creating a Budget?

An offense relies on a strong offensive line to protect and support them on the field. In personal finance, your budget is like that offensive line, shielding you from financial stress and helping you stay on track. Create a budget that includes:?

• Income: Track all sources of income, including salary, investments, and any side gigs.?

• Expenses: Categorize and track your expenses, from necessities like housing and groceries to discretionary spending.?

• Savings and Investments: Allocate a portion of your income to savings accounts, retirement funds (457 and 403b), and other investments.? It is crucial that you take into consideration taxes and fees – these can reduce your “score” considerably.?

Monitor your budget regularly to ensure you’re staying within your limits and make adjustments as needed. Like a quarterback calling audibles, be prepared to tweak your budget in response to changes in your financial situation.?

3. Passing Accuracy: Managing Debt?

Accuracy in passing is crucial for a quarterback, and similarly, managing debt requires precision. Assess your current debt situation and develop a strategy to manage and reduce it:?

• Prioritize High-Interest Debt: Focus on paying down high-interest debt, like credit card balances, first.?

• Consolidate or Refinance: Consider consolidating loans or refinancing for better terms and lower interest rates.?

• Maintain Good Credit: Keep track of your credit score and work to improve it by paying bills on time and reducing outstanding debt.?

Effective debt management will free up resources for saving and investing, much like accurate passes can lead to scoring opportunities.?

4. Adjusting to the Defense: Emergency Fund and Risk Management?

Just as a quarterback must adjust to defensive plays, you need to be prepared for unexpected financial challenges. Building an emergency fund is like having a backup plan for those unexpected moments:?

• Emergency Fund: Aim to save three to six months’ worth of expenses in a readily accessible account.?

• Insurance: Ensure you have appropriate insurance coverage for health, home, auto, and life.? Your life insurance should probably be low-cost term insurance to assure that your family’s needs are covered at a low cost. Consider Long Term Care insurance to protect your assets in retirement if you are in your late 40s or older.?

• Risk Assessment: Regularly review your financial situation and adjust your strategies based on potential risks or changes.?

Having a solid emergency fund and adequate insurance coverage helps you handle financial “tackles” without derailing your long-term plans.?

5. The Huddle: Seeking Professional Advice?

Just as a team huddles to strategize, seeking professional advice can provide valuable insights for your financial game plan. Consider consulting with:?

• Financial Planners: They can help create a comprehensive financial plan tailored to your goals. As an educator, it is important to make sure they are familiar with pension plans and retirement plans available to educators.? We strongly recommend a fee-based planner who will act as a fiduciary so that your goals are aligned with theirs.?

• Tax Advisors: They provide guidance on tax-efficient strategies and deductions.?

• Investment Advisors: They can assist with developing an investment strategy aligned with your financial objectives.?

• Superintendent Contract Experts: Your contract is your go-to-play when you need a first down making it important to work with an attorney or other expert who understands how to align your contract to your game plan.?

Professional advisors can offer perspectives and expertise to enhance your financial strategies and ensure you’re making informed decisions.?

6. Reviewing the Game Tape: Monitoring Progress?

Coaches review game video to analyze performance and make improvements. Similarly, regularly review your financial progress to stay on track:?

• Track Your Progress: Regularly review your budget, debt management, and investment performance.?

• Adjust Strategies: Make adjustments based on changes in your financial situation or goals.?

• Celebrate Milestones: Acknowledge and celebrate achieving financial milestones, whether it’s paying off a loan or reaching a savings target.?

Regular reviews will help you stay focused and motivated, much like watching game tape helps a quarterback improve their performance.?

Personal financial wellness, like football, requires strategic planning, effective management, and the ability to adapt to changing conditions. By setting clear financial goals, creating and sticking to a budget, managing debt, preparing for emergencies, seeking professional advice, and regularly reviewing your progress, you’ll be well on your way to financial victory.?

TCG, a HUB International company is prepared to join you to help establish your game plan and execute the plays on the field. Please let us know how we can be helpful and make sure you have the pieces in place for a winning season!?