When it comes to Argentina there are a couple of areas we could focus on where their planning is lacking and could be improved. The first is with their economy. Not having a solid economic plan has caused Argentina to repeatedly seek aid from the IMF to avoid a financial crisis. 
Financial crisis’s in Argentina are the norm. What’s not normal for Argentina is to get embarrassed on the soccer field which is happening to them at the World Cup currently being played in Russia. Their lack of planning for the first two games is to blame for their underachieving results and not something you should mimic with your finances.
In Argentina’s first game they tied Iceland 1-1. Iceland is a country with a population of 330,000. That’s a third of the population of Bergen County, NJ. To add more perspective, there are 331,811 registered soccer players in Argentina.
In Argentina’s second game they got blasted by Croatia, 3-0. Croatia is a decent team, but not a world power on the soccer field. After the Croatia game, Argentina coach Jorge Sampaoli, said their plan for the game was to exercise pressure and impose their will over Croatia. That’s not a plan to set your team up to win soccer games at the World Cup. When exercising pressure didn’t work in the game against Croatia, Argentina couldn’t adjust and turn to plan B because they really didn’t even have a plan A. Their strategy has been to pray that Leo Messi, one of the greatest soccer players ever can take the team and country on his shoulders and win games solely by himself. When he is shut down like he was against Croatia, Argentina has no clue what to do.
The lesson with your finances is not to be like Argentina: Have a plan, and if you need to make changes, be able to adapt to get your plan back on track.
Examples of financial goals you may want to plan for:
- Not to run out of money in retirement
- Generating enough income from your assets that you can achieve Financial Freedom and stop working when you want to
- Knowing how you are going to pay for your children’s college education so they are not hit with massive student loan debt
- Ensuring that your family can withstand a catastrophe, whether that is a death, disability, medical emergency, or job loss
- Paying off student loan or credit card debt
Your financial goals will likely change as you go through different stages of life. What’s right for you when you start working may change if you start a family. What’s good for you at the peak of your career will likely change when you retire.
Putting a financial plan together is not something you do once and forget about it. You may experience changes in your life that necessitate updating your plan.
The two main areas that may cause you to adjust your plan are going through a life change or having your goals or priorities change.
Examples of life changes
- You are forced to retire earlier than expected
- Social security benefits aren’t what were projected
- You start a family or experience a death in the family
- Your goals change and you have new priorities
- You go through a divorce.
- Your investments do better or worse than projected
- You may move
Examples of goals or priorities changing
- You planned on retiring at 65, but now you would like to retire at 60
- You would like to buy a home in Florida to spend the winters during retirement
- You have home improvement projects you would like to do
- You would like to help pay for your children’s wedding
It is never too early to start financial planning. Get started on your financial journey by using my Wealth Portal planning tool to help build a plan.
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