If you’re a professional athlete, chances are you’re making enough money to theoretically be financially independent for the rest of your life. Sometimes, though, even highly paid athletes are at risk of squandering their earnings because of poor financial preparation. Luckily, a little financial planning for professional athletes can go a long way. There are a few simple tips that can help you manage your money now so you can continue to live well later.
1. Get Professional Advice
When it comes to your finances, you definitely don’t have to go it alone. Just like you see a doctor for regular check-ups, creating a relationship with a financial advisor can make all the difference in your long-term financial health. Start building your own personal team of professionals who can help educate you and steer you in the right direction, so you can feel confident about making smart decisions with your money.
2. Create Good Habits
Just like improving at your sport requires dedication and practice, building a healthy relationship with money requires getting into good habits and practicing them every day. Remember to pay yourself first, and start putting aside money for investments and retirement accounts early on. If you learn to handle money well now, your habits will help you stay afloat later on, no matter how much you earn.
3. Live Below Your Means
While significant salaries and signing bonuses might tempt you to start living large, keep in mind that it might not end up being as much as it seems after taxes are taken out. Another factor is the length of your career – since many professional athletes are recruited at a young age, you should plan to save more now so that you have a financial cushion after you retire.
When you have a professional career in sports, a large earning potential means freedom but also responsibility. Tackle your finances with these three simple tips, and you’ll be setting yourself up for a lifetime of good money management and financial security.