It’s that time again. Football is back!!!!!! Now, I’m fully aware that some of you don’t give a crap about football – ESPECIALLY fantasy football. Maybe it’s just because I grew up in Texas, but it’s a big enough deal that my family watches it every Sunday and I’m in two leagues.
If you have absolutely no interest in hearing how fantasy and investing are similar, I’ve got your back. I pulled a very special post out that I wrote a LONG time ago. One of my favorites.
I also included Coral’s post about how she paid for wedding with cash (covering all my demographics here :)). Enjoy:
Ok – if you’re still with me, let’s talk fantasy! Believe it or not, the only “real” writing experience I had before I started M$M was WAY back when I was the commissioner for my job’s fantasy league.
Every week after the games were done on Monday night, I would write league letters that recapped all of the match ups. I guess they were pretty funny/creative, because everyone seemed to love them! It was the first time I realized I had a unique writing voice.
I directly contribute the creation of this site to those commissioner letters. So weird haha.
My good friend, who I recently interviewed for my “Multi-Millionaire” series, was asking me about fantasy football. He has a few million invested in the stock market, so he was basically wondering why Millennials (or anyone for that matter) would waste so much time on a game instead of learning how to invest.
Here’s why he’s right about fantasy football and investing:
*I literally just took a break from this post to send out a reminder email to my league about setting their lineups and checking for injuries hahahaha*
There is a ton of content out there about how important it is to get started with investing when you’re young. I won’t bore you with numbers again, but seriously. Millennials have time as an asset that we’ll never get back.
However, investing has a really powerful negative stigma attached to it for young people. It’s hard. It’s only for rich people. Our parents got crushed back in 2008. It’s too risky.
The reality is that having a basic understanding of the markets is not all that complicated compared to other things that we are bad@$$ at. Specifically – learning how to use Snapchat and mastering fantasy football. Those ARE hard. hg789 <- My cat just jumped on my laptop and wrote that. I’m leaving it.
ESPN, Yahoo, NFL, CBS = Schwab, Fidelity, Motif, Vangaurd, Betterment, etc.
The platform that your league chooses for fantasy is important. All of them have different intricacies, and you need to learn them if you want to stand a chance at managing your team well. They also have their own unique research tools and player rating systems. Sounds a lot like brokerages and their stock rating tools to me….
Team Owner = You (future/current cold-blooded investor)
You’re in total control of your team. You pick the players, change the lineup as you see fit, and lead your team to victory. The same goes for the companies you own.
League Dues = Initial Investment Capital
The dues for my league this year were $40. If I invested $40 per month and received a 7% return on my investments over the next 30 years, it would be $45,645.67. If you need to find some extra cash every month, you can take a look at some ways to save money on food every month here (you’re welcome).
Your Team = Your Stock Portfolio
Your mix of player potential determines how successful you’ll be in fantasy football. You need stability, upside, and maybe a liiiiiiitle bit of luck here and there. 😉
Players = Stocks
All of the major fantasy football platforms force you to have a well balanced mix of players on your team. Running backs, wide receivers, quarterbacks, etc. Some of the robo-investing platforms like Motif or Betterment help you diversify with all sorts of stocks, bonds, and ETF’s, but the same can be done on your own with the large brokerages!
Player Research for Draft = Stock Research for Portfolio
Now admittedly, I didn’t do quite as much research for my drafts this year as I usually would. I DO know several people that I’ve played with that do crazy research and bring their cheat-sheets to the draft with them. If you can spend that much time looking up football players, you could probably research a stock and it’s Price to Earning and Debt to Income ratios. Just saying.
Trades = ….Trades
This one is pretty obvious right? If a player is underperforming or you think you can get a ton of value by making a trade, you can do this really easily through your fantasy football platform. It’s ALSO really easy on stock trading platforms…but be careful. Transaction fees will eat your portfolio returns alive if you aren’t careful.
As a side note – Spencer Jakab from the Wall Street Journal sent me his book Heads I Win, Tails I Win a few months ago to review (Isn’t that crazy? Journalists actually send me their books). I’ll do a full review soon, but the premise is that the best investors generally leave their portfolio alone much more than weaker investors. Something to think about!
See what I mean about fantasy football?
Now obviously, this is super super simplified. But I guarantee if you can figure out how to research players and draft a fantasy team, you can research stocks and make your first trade.
Questions for you:
What other similarities did I miss? Add yours below!
Is your team good this year? Here are both of mine: