Learn From the Kansas City Chiefs and Build Your Own Legacy
The Chiefs’ 2022-2023 season has been one for the books.
With all the Chiefs recent success, and how they’ve set up the organization to succeed in years to come, the Chiefs are well on their way to building a long standing legacy.
Similar to the Chiefs, we can build our own long lasting legacy within our personal finances if we put in the work now and capitalize on the opportunities afforded us.
The Meager Years (Past)
Prior to the 2019-2020 season, the Chiefs hadn’t won a Super Bowl since 1969 (Super Bowl IV). Talk about a drought!
Life can feel a little like this sometimes, including your personal finances.
There’s no doubt that everyone’s past is filled with some “meager” years. You know, the years where you aren’t earning very much, you’re still rigorously climbing the ladder in your career track, you’re saving but your portfolio doesn’t seam to grow much, you can’t say yes to as many things as you’d like, etc.
This is the reality for everyone. If anyone says different, they’re lying or they’re the exception (e.g. they inherited their success).
No matter what you’re past looks like, you can work towards changing what the future looks like with a vision, plan, and discipline. Andy Reid, Brett Veach, and the Chiefs are a clear example of this.
Also, let’s not forget what the past can teach us. These years are a reminder, for many of us, of how financially scrappy we can be, how little we actually need to live, our financial mistakes and what we’ve learned from them, and how happiness isn’t primarily found in things or what we have.
The Prime Years (Present)
It’s undeniable that the Chiefs are hitting their stride. Within the last 7 years the Chiefs have:
Won 7 AFC West Divisional Championship Titles
Won 3 AFC Championship Titles
3 Super Bowl Appearances
Won 2 Super Bowl Championship Titles
You could even say the Chiefs are currently dialed in for more success in the coming years.
Let’s remember that these prime years have been because the work was done, in the past, to set a foundation years before success was even seen.
Looking back, I think 2013 will be regarded as one one of the most important years in Kansas City Chiefs’ history.
In 2013, the Chiefs:
Signed Andy Reid as the head coach
Andy Reid brought over Brett Veach, Eric Bieniemy, and Matt Nagy from Philadelphia
Brett Veach was captivated with Patrick Mahomes very early on and was directly responsible for KC drafting him
Drafted Travis Kelce and Eric Fisher (two crucial pieces to building the dominant KC offense)
Traded their 2013 2nd round draft pick to San Fransisco for Alex Smith
Alex Smith was dependable and invaluable in training and mentoring Patrick Mahomes
Key pieces were put into place well before we saw success. The other important factor was that they stuck to, and worked, the plan. Remember these words because they will be especially true for you and your finances.
Maybe you’re seeing results, maybe you’re not. If you haven’t invested in your finances in the past then today is the next best time. Putting a financial plan in place can help clarify what’s most important and what YOU need to be doing to move the needle.
For most approaching their prime earning years, in those years, or coming out of those years this is the time to set yourself up in the best possible way.
What can you do today to ensure a healthy development of your legacy?
Live Beneath Your Means
A timeless principle in building wealth. You can’t get ahead if there’s nothing to use to get ahead. By living beneath your means, you’re able to maintain margin and capacity with your finances to do and save for the most important things in your life.
Prioritize Saving and Investing
Pay yourself first. This practice ensures that the most important things are being saved for up front, while there is still money to do so. Automate this saving and investing to come from your paycheck as soon as it’s available.
Also, focus on your savings rate as opposed to trying to maximize returns via market timing or fund picking. Invest in a broad market diversified strategy and get back to your life.
Savings rate is a higher predictor of wealth than investment return.
Finally, ensure that your investment strategy lines up with your goals, values, risk capacity and tolerance.
Scrutinize Debt
Debt can be a useful tool on your wealth building journey. However, it can also be a destructive one. Scrutinize the use of debt and exercise extreme caution when considering it as an option.
If you have high-interest rate debt, eliminate it as fast as possible and put a process in place to avoid having to use and rely on it in the future.
Protect and Manage Risk
What good is accumulating wealth, and building a legacy, if it’s not adequately protected against loss. Insure the things that are subject to severe loss in very rare events.
One of the best things to have in place protect your legacy is life insurance.
Plan for Your Estate and Transition
It’s important to have the proper estate planning documents in place to handle life’s most complicated events. Everyone should consider having:
A will
Power of attorney documents (general/health/financial)
Health Directive
A trust (if applicable—speak with a professional)
Beneficiaries reviewed and updated annually
Having these documents in place, and up to date, will help with transitioning through life and ensure your legacy is carried out.
Getting a Head Start On Your Legacy
If you have kids, then it’s never too early to start teaching them about money and the most important money principles (see the above and consider your own). For young kids, consider helping them divide their money into thirds or fourths with the following goals:
Fun Fact
In the 2022-2023 season, Chiefs rookies played in a total of 161 games.
Saving
Giving
Investing
Spending
This exercise will help engrain in their minds that money isn’t to just be spent, but rather used as a tool for many other things (including planning for the future).
Remember, everything they learn, and come to accept about money, will first come from you. Create a health culture around money in your household.
The Harvesting Years(Future)
Although we’ve seen the Chiefs thrive in the last decade, there’s no sign of them slowing down any time soon. General Manager Brett Veach has made moves, such as drafting well and signing hidden gems, that puts the Chiefs in good position for awhile.
For the Chiefs, their hard work has paid off and now they’re able to harvest some of the fruit of their labor.
Eventually the time will come when you will be able to do the same.
When it comes to your legacy:
What do you want your legacy to look like?
Does the legacy you want to leave line up with your values and beliefs?
What are you doing to keep the momentum going for the future?
What are you doing TODAY that’s going to set you and your family up well in the years to come?
What aren’t you doing that needs to be done in order to build and protect your legacy?
How will you pass on what you’ve accumulated and built?
It’s best to think about these questions now rather than wait. Spend some time thinking about, and processing, these questions. From there, you can slowly put the pieces into place as needed.
It’s fun to watch a successful legacy unfold, just ask any fellow Chiefs fan.
It’s also really fun to build something that will last. You have the opportunity to do that. Start today if you haven’t already and consistently make financial moves that will slowly move the needle. We, at KCFAN, would love to help you in any way possible so please don’t hesitate to reach out to one of our advisors!
