I had my draft for my fantasy baseball league I’m in last week.
I’ve been in the league with these particular guys now for over ten years. It’s not a money league, but we’re real competitive nonetheless (we’ve been playing against each other for over a decade now).
I gotta say I’m stoked! Real baseball starts soon (go Mets!!) and I love following baseball alongside my fantasy league.
As I was going through all of my work for the draft I realized that fantasy baseball is a lot like personal finance. We could probably learn a thing or two about personal finance from fantasy baseball.
Without further ado, here are five ways fantasy baseball is like personal finance:
1. Putting in the Research
No successful fantasy baseball can survive without good research.
There are 30 baseball teams and each has a 40 man roster. In my league, we draft 23 players. You have to go through a lot of information ranking players, doing research on who will be playing and who will be good. There’s injuries, position battles, prospects…if you don’t keep up and do your research you won’t rise to the top!
***Personal Finance*** – With PF research is also integral to success.
You need to know where your money is going and keep up with funds and companies you may be invested in. What is your credit score? What is the interest rate? Are there expense fees?
These are just a few questions we try to answer when doing research for our personal finances.
2. There are Tons of Experts Out There
There are so many sites out there that have “experts” telling you who to draft and who will be the next big thing. Who do you listen to?
Truth is none of them can tell you for sure what will happen in the baseball season.
They work with the same statistics and basically give you their opinion on what will happen and what would be the best players to pick. A player can get injured or be great and then flop. Sometimes there’s no rhyme or reason behind a player’s performance.
Best thing to do?
Find a few of these experts who tend to have the same ideas as you. Listen to them but follow your gut with their advice and come up with an approach that’s best for you.
***Personal Finance*** – Please, who can count the number of experts in the personal finance realm?
Again, they all work with known information but each has their own spin on things.
Find the people whose approach you can relate to and use that to create your own approach to personal finance. And remember, just because you see someone on TV it doesn’t mean they are an expert and really know more than you.
3. Look for Value
There are those in baseball that everyone knows are great. Jacob DeGromm will miss bats. Mike Trout will make pitchers regret their pitches.
But the way to get ahead in fantasy baseball is to find the real values, guys who aren’t superstars yet but whose stats show they might be. Or those players who were great but got injured so people don’t value them as much.
I drafted Preston Wilson his first year in Colorado somewhere in round ten in my league years ago. He ended up being first round value and helped me to first place (something like 150 RBI’s). It’s about finding those fundamentally sound players who are about to take their game to the next level.
***Personal Finance*** – Value is important in personal finance as well. In stocks, you may be interested in those companies that have been consistently growing and they are about to take that next leap. In being frugal, it’s about getting the most value you can for your dollar.
You don’t want to pay for hype. It’s about finding value.
4. It’s Easier When You’re Around Like Minded People
I mention fantasy baseball to some people and they look at me like I have three heads. Or they just roll their eyes like my wife (luv you hon).
But when I get around other people who are as psyched about fantasy as I am…we can have a long in-depth discussion on why certain players are bound to do well or why we hate certain players because they cost us a championship. Friends who play fantasy baseball keep me excited about it. I try to share any new research or info I have with them and they do the same in return.
***Personal Finance*** – It can be tough keeping a reign on your personal finances when your friends, family, and neighbors are the “Joneses.”
Who can keep up with the new cars, big houses, and name-brand items?
When your friends have the same ideas about PF as you do it’s easier to keep things in check. You have people you can talk to and discuss issues and ideas with. In the blogging world, we have places like PT Money, Cash Money Life, Moolanomy, Good Financial Cents, WiseBread, and so many others where we can go to share ideas about personal finance.
5. There’s No One Approach to Winning
Do I draft for speed? Do I draft more hitting? Pitching? Do I go with steady, consistent players or try to draft the hot prospects? Do I draft Mike Trout or Kershaw first?
Just as there are many experts there are many ways to win a league. In fact, you may start off with one strategy and end up following another. Your strategy may change based on the other people in your league. If everyone values hitting more then maybe it’s worth it to value pitchers higher.
***Personal Finance*** – Stocks, bonds, savings, earning more, mutual funds, ETF’s, real estate, 401(k)‘s, IRA (traditional and Roth)…
There’s no one way to get ahead.
Your approach may combine all of these or maybe only include a few. Everyone’s idea of personal finance is a little different. There’s so many ways and ideas and you have to find what works best for you. Odds are the strategy you have now will change over time.
I could keep going, but I need to go research some guys in AAA that have a shot at getting called up this year…
But you can easily see how fantasy baseball and personal finance are very similar!
Can you think of any more?