4 lessons the gym can teach about money

Getting stronger, financially or physically, is tough mahi. Anything worth doing is worth putting in the hard yards - but it isn’t just about doing the work. It’s about seeing the effort in the right way too and cultivating the right mindset.

Athletes know this better than nearly anyone, and getting out of debt is a lot more like going to the gym than you might think. Here are 4 lessons that any gym coach could teach you about successfully smashing your debt down to size.

1. Set a meaningful and achievable goal

You have to know where you want to be to know where you’re going. For professional athletes, this means working towards hitting a certain time for their laps, weight on their bar, or wins to their name. By setting specific, measurable, manageable but still achievable goals, they make their hard work on the track, in the pool, on the court or the field more meaningful. And it helps them keep their good work going.

In getting out of debt, it’s the same. Set yourself a goal - and don’t be tempted to just leave it at “have no debt”. That’s meaningful, but not always achievable. Instead, try setting multiple, easier, short-term goals. Maybe you want to eliminate a quarter, half, or all the debt of a particular credit card. Or perhaps you want to make so many extra payments on your mortgage. Whatever the specifics, you’ve got to set a goal to know which direction you’re heading in.

‍

2. Make a fitness programme and stick to it

As we said before, money is mahi just like working out. You don’t do 100 sit-ups in a day and wake up the next day with a 6-pack (though that’d be nice…). If you want to hit your financial goals, you need to work out the nuts and bolts of how you’re going to do it. 

Thinking of smashing your debt in the same way as you think of smashing your personal bests at the gym is surprisingly helpful here too. Different athletes in different sports work different muscle groups when they train. In finance, the same is true of people with different kinds of debts, different lifestyles, different wants and needs. 

Don’t think that what works for somebody else will definitely work for you. Take the time to figure out the “exercises” that’ll help you crush your debt - like making extra repayments, or consolidating your debt, only using physical cash to curb spending - and do what works for you. Not what works for someone else. You might just be in different sports.

‍

3. Ramp up and don’t burn out

People don’t become Olympians overnight, and the same is true for financially fit people. It takes time to learn the skills and financial exercises that work best for you. Trying to do everything all at once is a surefire way to burn out and give up.

If you’re in a position to do so, start with small habit changes and work your way up from there. Some of the best athletes in the world started with just a few press-ups every day. Be kind to yourself, and give yourself time to get used to your new habits before you start taking the next step up.

‍

4. Get support

Football clubs have fans, athletes have coaches, and Olympians have a whole team of trainers. Physical and financial fitness is much easier when you have someone in your corner with a kind word, some wise guidance, or a listening ear. 

If you want support, be the support. Talk to your friends and whanau about money, be open and honest with your partner and kids, and smash the stigma that talking about money should always be kept to yourself. 

This was originally posted as an education article on the Money Sweetspot customer portal. If you read this as one of our customers, you would've earned some money off your loan! Do the mahi, get the treats. Find out more.

‍