3367: Financial Lessons From a Rugby Field by Michael Smith with Financial Finesse on Long-term Financial Strategy

Summary

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Podcast Summary: Optimal Finance Daily

Episode 3367: "Financial Lessons From a Rugby Field" by Michael Smith with Financial Finesse

Host: Diania Merriam
Air Date: November 27, 2025

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Main Theme

This episode explores how lessons learned on the rugby field can be applied to crafting a resilient, long-term financial strategy. Michael Smith, writing for Financial Finesse, draws powerful parallels between team sports and money management, emphasizing teamwork, consistency, and building a healthy relationship with money. Host Diania Merriam adds her own insights on the value of community in the pursuit of financial independence.

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Key Discussion Points & Insights

1. Learning From the Rugby Field

[01:29]
Michael Smith shares his lived experience as a dedicated rugby player and coach. His excitement about the current collegiate championships serves as a springboard for examining how habits and mindsets created in sports translate to financial success.

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A. Relying on Your Team (and Financial Team)

[03:02]

• On the rugby field, trust and teamwork are non-negotiable: “If I try to freelance or do too much or play selfishly... I would have 15 opposing players waiting to hit me hard.” (Michael Smith, 03:07)
• In money matters, the same lesson applies. Michael stresses the importance of assembling a capable financial "team"—from planners to agents and attorneys—and maintaining good communication.
• Key advice: Trust your team but keep an oversight role—"so you don't get Bernie Madoffed." (03:54)

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B. Accepting Wins and Losses

[04:15]

• Every team, good or great, wins and loses. What sets the best apart is their mental approach—moving on quickly from both victory and defeat.
• Michael relates this to investing: People panic when their 401(k) statement drops, forgetting that markets naturally fluctuate.
  • "Pick a strategy and stick to it. In good markets and bad, it's not that complicated." (Michael Smith, 06:02)
  • He outlines his own investing strategy: steady asset allocation and regular rebalancing, minimizing emotional decisions.

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C. Focusing on What Truly Matters—Relationships

[07:04]

• Lifelong friendships from rugby mattered more than any win or loss.
• The same principle holds with money. Financial situations fluctuate, but they don’t define you.
• Michael reframes harmful self-talk he hears in financial coaching sessions:
  • "When I hear that [“I’m horrible with money”], I immediately stop the meeting and let them know that they are never allowed to say that again." (07:44)
  • Instead, he encourages clients to see their financial journey as just another relationship to cultivate, like with friends or family.

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D. Applying Life’s Lessons

[08:34]

• Michael closes by urging listeners to reflect on pivotal life experiences—like his rugby career—and consider how their lessons can shape one’s approach to money.

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Host’s Commentary & Reflections

On Financial Community and the FI Movement

[09:57]

• Diania Merriam underscores Michael’s point about teams, connecting it to the power of community in financial independence (FI).
• She quotes an anonymous saying:
  • "If you look at your inner circle and you're not inspired, then you don't have a circle, you have a cage." (Diania Merriam, 09:58)
• Diania describes how involvement in the FI community has expanded her own vision of what’s possible and how building a circle of ambitious peers influenced her journey.
• Recommendation: Get involved via meetups (Choose FI), retreats (CampFI), or conferences (like her own Economy Conference).

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Notable Quotes & Memorable Moments

• Teamwork:

  "It's virtually impossible to do everything on your own, so find excellent teammates and trust them... while maintaining an oversight role so you don't get Bernie Madoffed."
  (Michael Smith, 03:52)

• Consistency Over Perfection:

  "Pick your strategy and stick to it. In good markets and bad, it's not that complicated."
  (Michael Smith, 06:02)

• Reframing Self-image With Money:

  "When I hear [‘I’m horrible with money’], I immediately stop the meeting and let them know that they are never allowed to say that again."
  (Michael Smith, 07:44)

• Value of Community:

  “If you look at your inner circle and you're not inspired, then you don't have a circle, you have a cage.”
  (Diania Merriam quoting, 09:58)

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Key Takeaways

• Build your financial “team” just as you would rely on teammates in sports—for advice, support, and expertise.
• Expect both wins and losses with money. Don’t overreact to short-term setbacks; stick to a long-term strategy and rebalance as needed.
• Prioritize relationships, not just finances—what matters most is the quality of your connections, including your relationship with money.
• Engage with a supportive community to deepen your financial knowledge, motivation, and sense of accountability.

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Suggested Resources

• Find a local Choose FI meetup for peer support and practical ideas.
• Attend financial independence events like CampFI or the Economy Conference.

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This episode offers a thoughtful reminder that resilience, teamwork, and maintaining perspective are just as vital in money matters as on the playing field. Whether you’re shaping your portfolio or your life, consistency, community, and compassion—toward yourself and others—are the foundations of success.

Transcript

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To match go to GoDaddy.comGdNow and look legit. That's GoDaddy.comGdNow new customer purchases only products Auto renew separately. See terms on site. This is optimal Finance Daily Financial Lessons from a Rugby Field by Michael Smith with financialfiness.com As I write this I have clothing in the dryer and when it's done I'm throwing some of it in a bag and hitting the road. The university where I played rugby is playing in the college national championships this weekend. Some of my old teammates are the coaches and I'm still involved with the team in various capacities. I'll probably be watching game tape of our Saturday opponent in the round of four and if we win, yes, I still say we when talking about a group of college kids playing rugby. I'll spend part of Saturday night breaking down tape with the coaches for our Sunday opponent in the national championship game. I'm pretty excited and can't wait to hit the road to see the boys play with the prospect of a national championship trophy in reach. I pretty much have a one track mind right now and it's 100% about the game of rugby. But it turns out that discovering this silly game and playing it for a long time has helped shape my financial life as well. Some things I learned on the rugby field that are useful in my real life as if rugby isn't real life. 1. Rely on your teammates on the field where each team fields 15 players. If I try to freelance or do too much or play selfishly by not involving my teammates, I would have 15 opposing players waiting to hit me hard on the field. I absolutely needed to work with my 14 other teammates and trust them. In my financial life. I have to trust and work with my financial planner. Yes, I have one. After talking to people all day long about their financial life, the last thing I want to do at home is look at my own. So I have a relationship with a planner who reviews my financial life and I review his so he doesn't have to after his day is over either. I also have to trust my homeowner's insurance agent, my auto insurance agent, my life insurance agent, my real estate agent, and my mortgage broker. When I got divorced, I had to trust my attorney to update my will and healthcare directives. I probably have as many financial teammates now as I had rugby teammates during a game. I have to talk with each one just like I talk to all my on field teammates to make sure that our strategy is where it needs to be, our tactics are in line with goals, and that we know where we're headed. It's virtually impossible to do everything on your own, so find excellent teammates and trust them to do their job while maintaining an oversight role so you don't get Bernie Madoffed. Number two. Sometimes we win and sometimes we lose. I've played on great teams and I've played on bad teams. All of them won and all of them lost. The thing that made the great team so much better wasn't necessarily the talent level on the field. It was mostly mental. After a win, we didn't celebrate for more than a few hours. After a loss, we didn't sulk for more than a few hours. We moved on to the next opponent and focused on the next task at hand. I'm seeing too many people right now who are panicking because their 401k value is lower on their quarterly statement than it was on the last statement. After six to seven years of straight up growth in the stock market, too many people forget that markets go up and markets go down. They want to make radical changes to their investment strategy because they had one bad quarter. I don't know if the markets will go up or go down in the next quarter, but I can say with virtual certainty that over the next 10 years we will have many good quarters and quite a few bad quarters. Expecting to win some and lose some can help take the overreaction out of investing. My philosophy or strategy on investing is pick a strategy and stick to it. In good markets and bad, it's not that complicated. I have a top line Stocks versus Bonds versus Cash asset allocation that I believe is right for me and I stick to that allocation when the market goes up and when the market goes down I also rebalance automatically so that my top line allocation remains relatively consistent. I'm a hands off investor with this strategy. Pick your strategy and stick to it. Don't let one loss make you rethink everything. And number three, in the end it's just a game and what really matters is the relationships. My college teammates are some of the best friends I have to this day. The guys on the field Saturday and hopefully on Sunday will form lifelong bonds out there. Not to get too sentimental, but there have been times in my life where things have been really rough financially. There have also been times when things have been pretty darn nice financially. Not being defined by your financial situation at any moment in time is a very important skill to learn I meet with people who come in for a financial coaching session and the first thing they tell me is I'm horrible with money. When I hear that, I immediately stop the meeting and let them know that they are never allowed to say that again. That message has to be removed from their mind. I reframe it and ask if they have good relationships with friends, family, co workers, etc. Almost always they say yes. I then let them know that they are creating a new relationship today with money and that relationship can be a good one just like the other ones in their life. It's a bit silly or corny, but I think that reframing that piece is critical to the success of some of the people who once told me that they were horrible with money. In follow up sessions I ask how their relationship with money is going and they laugh knowing that they would not be met with a smile if they said they were horrible with money. Still, think about the relationships in your life and if it makes sense for you to reframe your relationship with money in a new way. The dryer is now finished and I'm getting ready to pack my bags to see a great weekend of rugby. I'm even taking my cleats and mouth guard just in case the coaches think I've still got a good 30 seconds of play left in my body and let me sneak onto the field and test how good the medical staff is after a 20 something year old super athlete destroys me. Think about the things in your life that shaped you, much like my rugby experiences have shaped me. What lessons can you take from those important stages of life and make a part of your financial life? 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I thought Michael made a great point here about relying on his teammates. There's an anonymous quote I love that says if you look at your inner circle and you're not inspired, then you don't have a circle, you have a cage. The idea of community is powerful for any type of goal, especially for financial goals. This is a big reason why I identify as part of the Fire movement. Since I started going to different meetups and events rooted in fi, I noticed over time that my entire circle of influence are now people who are pursuing financial independence. As I scroll through my social media feeds, most of what I see are people discussing topics surrounding personal finance, sharing tips, asking for advice, or celebrating milestones. I find myself surrounded by people doing incredible things with their finances and this has really helped me expand my understanding of what's possible. While my finances are still my responsibility, I can't help but wonder sometimes if they've improved somewhat from osmosis. It's also a big reason why I created the Economy Conference. It's clear to me that FI is better with friends, and the pursuit attracts really creative, ambitious, and intelligent people. I'm a pretty social person, so the idea of reaching FI and retiring early without people to hang out with wasn't all that appealing. If you're interested in getting to know more people in the community, I'd encourage you to find a local choose FI meetup, attend a campfi event, or join us at the Economy Conference. And that should do it for today. Thanks so much for listening all the way through, and I'll catch you tomorrow on our next episode, where your optimal life awaits.