All Things Financial Planning Blog

The value of tracking your stats in the financial game of life

Part 1 of 2

Win-lose-tie. Speaking for Americans, we have a national obsession with keeping score. We also prefer to win at everything we do, even though sometimes losing is winning, like when it comes to our waistline. This obsession with keeping score and winning starts early. Ask any 5-year old Little League baseball player and they can tell you the game score and who has the most strike outs, even though there’s absolutely no emphasis on keeping track.

The fact is we’re naturally pretty good at tracking where we stand, even if we’re memory or math-challenged. My own sons may forget a lot of things (like brushing their teeth) or struggle with algebra, but they have an amazing capacity to interpret and recall their own and total strangers’ goals scored, batting averages, and golf handicaps from seasons long ago and far away. 

We just can’t help ourselves. In our data driven society, blatantly or subtly, we track the stats and standings for just about everything in our lives- sports, academics, career, health and fitness, and heck, even the intimate details of our relationships. 

Why the obsession with knowing the score, and is it good for us? I think we have a need to know, in a measurable way, how we’re doing—not just how we’re doing on our own but how we stack up against others. I can relate. When I cross a running race finish line, the first things I want to know are: How did my time compare with last year’s? How did I rank against other women, especially those in my age group? It helps me to evaluate what to celebrate and what I need to work on. 

Keeping score is motivating. At my annual health check-ups, I want my BMI (body mass index) and cholesterol scores to be better than last year’s or at least ahead of the average for my peer group, so I tend to eat healthier in the weeks leading up to the appointment. 

A winning mind-set is powerful. Compare when you play tennis or any game “just for fun” versus when you “play to win”. When do you try your best? Of course, we give greater effort when there’s a goal and sense of competition—a public opportunity to be declared the winner. Let’s be honest, an attentive audience and the potential for praise or a prize helps to bring out our best effort.   

The value of keeping score applies in our financial lives too. How else can we know if we are financially strong and healthy? How can we evaluate whether the financial actions we take are helping us to make progress towards our financial finish lines? What does “winning” look and feel like from a financial perspective?

I want to hear from you. Tell me: What’s on your financial scorecard?

1. What personal stats do you track to evaluate how you’re doing financially?
2. How do you keep track?
3. When do you feel like a winner, financially speaking?

I really want to know what you think and how you track your financial standings, and so do your fellow blog readers. By the way, no fancy methods or calculations required! In fact, the simpler and more practical your approach, the better and easier for the rest of us.

Send your ideas to Karin@truewealthadvisors.com. In Part 2 of this column, I’ll share your ideas, anonymously or by name- your choice.  

Let’s up the ante and get your competitive juices flowing. I’m offering a prize of one hour of free financial planning advice for the person who sends the most useful idea on how to keep score in our financial lives. 

On your mark, get set, GO!

Karin Maloney Stifler, CFP®
President
True Wealth Advisors
Hudson, OH