How adopting an Olympic athlete mindset can boost long-term savings

July marked two major events, both on the global stage and on the local front: the start of the Paris Olympics 2024 and National Savings Month in South Africa.

According to Jurgen Eckmann, wealth manager at Consult by Momentum, National Savings Month is a time when people are encouraged to live within their means and put aside a little for the future.

Eckmann said there are a couple of things that South Africans can learn from the habits of Olympic athletes that they can apply to their finances.

“They see their body as a tool in helping them achieve greatness and invest in its performance through physical training and nutrition. Likewise, by viewing our money as a tool in helping us achieve our dreams and through carefully nurturing it, we too can realise our financial goals, whatever they may be,” Eckmann said.

Here are things you can learn from top-performing athletes that can guide you when it comes to saving and investing money.

Have a game plan

Athletes will not enter a major sport event like the Olympics without having a serious game plan.

Athletes understand the need for a clear goal and a game plan, and the same approach should be applied to your savings.

Eckmann recommends that people start by defining their goals, which could be something they want to purchase or an amount they want to have saved by a certain date. Then, calculate how much you can afford to put away each month and how much time it will take to reach this goal. Ensure that this plan aligns with your budget and that the savings contribution is a fixed item under essential expenses.

You can also automate these savings from your bank account.

Know that practice makes perfect or that consistency gets you results

Emil Zatopek, who won gold at the 1952 Olympics, used to run for hours a day in heavy army boots to get race-ready.

“At first, it might be hard to put aside that money and not spend it, but it is only through repetition and consistency that your savings will begin to grow,” Eckmann said.

“And it starts to get really exciting when the power of compound interest kicks in, which is where your money starts working hard for you.”

Have the right team behind you

An Olympian knows you are only as good as the team around you.

Eckmann said that Olympians know that to be the best, they need access to the best people and the same should go for your savings and investment goals.

It is essential that you consult a qualified and experienced financial adviser who can offer you expert, unbiased financial advice.

“If you want to get serious about your financial goals, you need to get serious about who you’re choosing to be on your team, who’ll guide you on your journey to success,” Eckmann said. – IOL Business