If you haven’t heard by now (now being July 6, 2012), Steve Nash, who’s played for the Phoenix Suns for a number of years, has just been traded to the Los Angeles Lakers! For a lifetime Lakers fan such as myself (I’m the baby in the picture for proof), this is great news. Now I won’t go on and on about how great the Lakers are (because everyone already knows that right?), instead, I want to tell you what you can learn from big time NBA Execs and the Steve Nash trade.
If you follow NBA basketball in any way, you’ll know there are a lot of moving parts. There are hundreds of players, hundreds of contracts, dozens of teams, and a lot of trading. Teams are constantly deciding how to create the best combination of players and talent. Some of these players come at a price, and some come with contracts they have to keep. Your finances are no different.
We can learn a lot from these organizations about how we should run our own finances. If we were half as vigilant about our finances as they were about their teams, we would stand to gain a lot. We too, play by a similar set of rules. Just like the Lakers looks for the best things for their organization, we look for the best things for us. These items (home, car, food, clothing, etc) come at a price, and often come with a commitment. My home mortgage is expensive, and comes with a 30 year commitment. My phone bill is much cheaper, especially with the tips I use to save on my phone bill, but it comes with a 2 year commitment.
So what do the Lakers do when those commitments are up? They reevaluate their situation, and look to trade. Hence how the Lakers acquired #10 Steve Nash. We should do likewise. When your phone commitment is up, you should look to trade. When your next auto insurance, or life insurance premium is due, you should look to trade. When better mortgages rates enter the game, you should look to trade. Consistently looking for better options in managing the game of finance can make you feel like a winner. And winners get paid.
Will you always trade? No. Kobe’s been with the Lakers for 15 years now, but I can assure you they have made the analysis. You don’t always have to switch phone carriers or insurance companies, but you have to look at what will, overall, be most beneficial for you and your finances.
I will end my thoughts with one final, controversial thought…
Kobe is the greatest player of all time.