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You can use March Madness to help manage your money

Financial professional Mike Kojonen, owner of Principal Preservation Services, explains how March Madness can teach us valuable lessons about saving and budgeting.

GOLDEN VALLEY, Minn. -- While most people are spending money during March Madness, you can use this time to up your financial game.

Many people make New Year's resolutions related to their finances that go out the window by February. Financial professional Mike Kojonen, owner of Principal Preservation Services, visited KARE 11 Sunrise to explain how March Madness can help you get back on track.

How can March Madness help you with your money?

  • Tune In. Americans spend millions of hours watching the NCAA tournament each year, but when it comes to our finances, we are not tuned in. In fact, about half of workers have nothing saved for their retirement! Retirement won’t just fall in your lap; you need to plan for it. Start by setting up a meeting with your spouse to talk about your plans. You may also want to start meeting with a financial professional.
  • Set Your Goals. Just like you’re building your bracket with the championship in mind, you want to think about your endgame when you build your financial plan. What does your dream retirement look like? It’ll be easier to stick with your financial plan now if you know your goals and can look forward to them.
  • Build Your Bracket. Filling in the blanks on a bracket is actually surprisingly similar to an important financial tool: a budget. You need to keep track of how much you are spending and make sure it’s less than your income. Just like you weed out the teams you don’t think will make the cut in your bracket, in a budget, you’re weeding out the expenses that won’t make the cut. If you’re struggling with this, check out Mike's budget worksheet here.
  • Watch Out for Busters. When a team that you’ve got going to your Final Four gets knocked out in the first round, what does it do? It busts your bracket! Your budget can get busted, too, by an unexpected emergency, like a car breaking down or a trip to the emergency room. Unfortunately, most Americans aren’t prepared for a financial emergency. About half of adults say they don’t have enough in savings to cover losing a job, a medical emergency or an unexpected auto repair. Here’s the good news - even though you can’t prepare for a bracket buster, you can prepare for a budget buster by building an emergency fund. Mike recommends clients keep a separate account with 3-6 months of their income saved so they’re ready for the unexpected.

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