The Wealth Game: Getting to First Base

With today’s entry, I want to continue looking at the wealth game. Following the same baseball analogy from the first blog in this series, I want to examine the move from the batter’s box to first base which is typically your first job. This is a necessary first step but it’s important to avoid the trap of staying on first for too long. You see, just like in baseball, you want to advance the bases when playing the wealth game. So, as we move through this series, we’re going to work toward a deeper understanding of what each base represents and how to “lead off” in pursuit of the next.

Follow Along With The Financially Simple Podcast!

• The inequality of life and the goal of the first base of the wealth game
• How lifestyle choices can get people trapped on first base
• Avoiding the trappings of the first base and the value of getting a coach
• What “lead-off” means in baseball
• Taking a lead-off from the wealth game’s first base
• Reviewing the rules of the wealth game

The Wealth Game Begins at First Base

I remember playing baseball as a kid. I would approach the plate with nerves of steel, waiting for the perfect pitch. It never mattered what the game situation was. When I hit the ball and began running to first base, my dad would puff his chest out like a peacock and proclaim, “That’s my boy!” You see, he knew that the game really begins at first base. Sure. You enter the game before reaching first. But you can’t impact the scoreboard without touching first base.

The same is true in our game of wealth. You enter the game the day you’re born. But you can’t begin to accumulate your own wealth until you’ve reached first base. But what does it take to get there? What can you do to keep the momentum going after you’ve arrived on base? Are there dangers to watch out for after you’ve gotten on first base? These are some of the questions we’re going to address in today’s entry.

What Does it Take to Get to First Base?

Just as when I played little league baseball, the process of getting to first base began when I entered the batter’s box. In life, we could say this is when you’re born. Just as you would look to the dugout to get cues from your coach, children look to their parents to tell them how to succeed when they’re at the plate. Each person must take their time and wait for the perfect pitch (opportunity).

Now, the perfect pitch looks different for each individual. Some, make contact right out of the gate while others wait until a little later in the count. Then, there are those who seem to get on base for free, either by being walked. Although there’s no such thing as truly getting on base for free, the latter could be viewed as those who start life from a more advantageous position. The point is, we all start in the batter’s box with the same goal.

Regardless of how many pitches it takes for you to make your way to first base, most of us will get there. But how will you know when you’ve gotten there? Well, in our baseball analogy, it’s when you enter the workforce. Once again, this timeframe varies from person to person, and even from generation to generation.

Younger Generations are Waiting Longer

If you’ve followed me long enough, you’ve probably heard the story of my dad telling me, “Son, either get a job or don’t come home.” He wasn’t actually going to put me out on the dirt roads of South Georgia, but he wanted me to have that sense of urgency to begin working and earning. So, I immediately went out and started my own landscaping business. I entered the workforce at 15-years old and was safely on first base. This is a little earlier than most people my age. But what’s interesting to me is that a recent study found that the generation before me (the Baby Boomers) averaged reaching first base at 16.3 years of age, regardless of gender.

On the other hand, the average millennial male waited until they were 17.4 years old to get on base. Meanwhile, their female counterparts entered at 16.9 years of age. Still yet, 13% of millennials waited until they were at least 20 years old to enter the workforce. So, the younger generations are waiting longer to begin their wealth game, placing greater importance on work/life balance and schedule flexibility.

Additionally, the survey found that nearly 60% of respondents felt their first job directly contributed to their current career success. So, as you’re mentoring your children, you must understand that their first job will likely impact their futures. In my own home, we place a lot of emphasis on our kids’ researching their first jobs. This is important because the wealth game isn’t fair. It’s not set up to give each person a level playing field. We all start with a different set of skills, talents, resources, etc. We will all reach first base differently. What matters is, how you touch the bag. Do you run through it, or do you round first as you set your sights on second base?

Don’t Get Handcuffed

One of the dangers associated with first base is that you can become “handcuffed.” I know. You’re probably thinking, “Justin, I watch baseball. There are no handcuffs in baseball.” That’s true. However, the pitcher will often keep a close eye on the runner at first. They’re looking for an opportunity to pick them off and send them back to the dugout, having never made it to second base. In a similar manner, there are things that can prevent you from ever advancing to second base in the game of wealth.

Amazon offers a program called Career Choice. Essentially, they pay an employee’s full tuition as a means of “handcuffing” the employee to their service. To be eligible for this program, employees must be employed by Amazon for at least three months and they will only pay the tuition for as long as the employee remains with the company. However, given the constraints of the employee’s work schedule, some critics of the program claim it could take from 8 to 16 years to complete a bachelors program. Thus, handcuffing the employee to what is essentially, long-term indentured servitude.

My brother graduated from college with a very difficult degree in engineering. Although he took a different path, many of the other graduates from that program took six-figure jobs right out of college. They got a comfortable salary as soon as they got out of school but then they were basically stuck because they didn’t have opportunities to really increase their income in their roles. They also couldn’t leave for new opportunities because they took on debt to increase their lifestyles. Lifestyle choices, like these, can also create a sort of handcuff for workers who find themselves stuck on first. It’s natural to want to upgrade your lifestyle as you begin to earn. But there are steps you can take to make sure you remain on track to move to second base.

How to Avoid the Handcuffs

Unfortunately, many people reach first base and never move beyond that point. They become handcuffed and get comfortable. So, our job as parents, mentors, and coaches is to prepare the next generation to not only get to first base but to turn the corner so they can begin preparing to move to second. Now, if you find yourself stuck on first, that’s okay. You can still move to second. But my question to you would be, who’s your coach? Who are you listening to, to tell you when it’s time to run? You see, you need to have someone you can turn to for an objective opinion and direction to help you reach your goals.

You can avoid the handcuffs of first base by listening to your coach and playing the game properly. When money comes in, don’t spend it. Invest it. When money comes in, don’t increase your lifestyle. Build wealth. Use it to progress to second base. Of course, the reality of human nature will come into play. We all want nice things. You work hard for your money and you want to enjoy it. I get that. But pay yourself first and operate off of a budget. What do I mean by “pay yourself first?” Whatever your income is, take some (ideally, 10%) right off the top and put it away for a rainy day. Put it into savings, invest it, etc., anything that will allow it to work for you.

Wrapping Up…

Friends, the wealth game is very easy from a conceptual standpoint. But it’s extremely difficult in practice. Knowing what to do before you arrive on first base, and how to lead off toward second base, can help you avoid getting stuck on first so you can win the wealth game. I don’t want to see any of you struggling to get off of first base. Life is hard enough. But as long as you’re in the game, life is good. Getting from first to second will be difficult. It will be frustrating. But if you find a coach you can trust, and stick with the plan, it can at least be financially simple. Hey, let’s go out and make it a great day!

If you have questions about how you can begin to accumulate wealth, or if you’re just in need of a good coach, reach out to us! The team at Financially Simple is always here to lend a helping hand.