Talent and a high income will only get you so far.
These factors apply to both professional sports and personal wealth creation.
The N.Y. Yankees are a prime example of unfulfilled promise due to bad decision making.
It doesn’t help that they have a manager who majored in excuse making and minored in being his players’ best friend.
Other components explain why a team with a $300 million payroll and one of the greatest players in history, Aaron Judge, would barely qualify for the playoffs if the season ended today.
They stink at playing fundamental baseball.
The numbers don’t lie:
- The Yankees rank among the top 3 in MLB in GIDP (Grounding into Double Plays), killing rallies and showing poor situational awareness at the plate.
- Consistently below league average in hitting with RISP, runners in scoring position (batting average and OPS) often strand runners.
- Negative DRS Defensive Runs Saved across multiple positions, particularly in the outfield and corner infield spots.
- The Yankees rank in the bottom five in MLB in baserunning efficiency, making too many outs trying to take extra bases or getting picked off.
- Near the bottom in successful sacrifice attempts or total sac bunts.
It’s almost impossible to beat good and not-so-good teams when you give runs away like candy on Halloween.
As a financial advisor for over twenty years, I’ve observed many people manage their money like Aaron Boone defends the indefensible after every bonehead play. (See below for his greatest hits.)
While the cost of living has risen dramatically over the past few years, it doesn’t excuse the lack of finance fundamentals I’ve seen HENRYs (High Earners, Not Rich Yet) engage in.
Here are some, in the words of Mr. Boone, a little bit wonky money mistakes on top of the wasted potential hit list. (Sadly, these are all true stories.)
Leasing expensive cars—I knew a couple who made over 200k annually but struggled to make ends meet. It didnt help that they had two car leases for over $700 monthly! It’s hard to get rich from a depreciating asset you’re renting.
Not taking advantage of a 401(k) match – how about having two six-figure incomes and saving $100 a paycheck when the company matches 5%? Turning down free money won’t get runs across the plate in the saving for retirement game.
Ludricous Travel Sports Team Budgets—Spending 9k annually for each of your three children to become the next Caitlin Clark or Patrick Mahomes is delusional and poor risk management. Imagine if these funds were compounding in a 529 college savings plan? That lottery ticket sports scholarship wouldn’t be a concern.
Overpaying for College- Imagine paying triple the price for college tuition because you liked their football team? Yes, this happens with devastating results for retirement planning. A 200k Parent Plus loan at 9% does this sort of thing. Attending a state school and buying season tickets for the SEC is a better plan.
No Unified Financial Plan—She saves, he shops. Non-communication is not a way to manage money. Having completely separate, secretive finances is a sure path to unrealized potential. Unfortunately, the same applies to the success of a healthy, lasting marriage. If you can’t trust your partner, your marriage is in trouble. (They’re divorced.)
The bottom line is that a $300 million baseball payroll or two six-figure incomes mean nothing if you don’t know hell you’re doing.
