While there are many famous athletes that manage their money well, there are many athletes that lose their millions shortly after they retire. If a person is able to lose millions in a few years, there’s obviously a mismanagement problem with money. In many cases, it’s understandable. Many people aren’t given a manual on how to manage their money. It’s not even a concept taught in school. However, when you know better, you can do better. If you’re an athlete or hoping to build a career as an athlete, remember these lessons when you’re dealing with finances
1. Always pay Uncle Sam.
It is so important to pay your taxes. It doesn’t matter if it’s a check from an outside project or if it’s from the regular salary, always pay your taxes. If you need to do a quarterly schedule for paying taxes, do it so that you don’t fall behind.
2. Find ways to make the money grow.
Always find ways to make your money grow. Consider starting a small side business and employ people to run the daily operations. Invest money in the stock market and the foreign exchange. Purchase real estate properties and use them for investments. There are so many options to consider, but make sure you take the time to invest and make it all grow.
3. Ask questions and delegate.
It’s very wise to become financially literate. It’s okay to take a class to learn more about how to manage your finances. It’s also wise to employ someone who can manage your finances for you. There are companies that offer services surrounding financial planning for professional athletes. Delegate the tax preparation to an experienced and reputable accountant. To take it a step further, put yourself on a budget. When you stick to a budget, you allow yourself to be financially free. In your budget, implement boundaries that you can stick to.
As long as you stay committed to these three lessons, you’ll be okay. It’s when people think they know better that they make really poor choices with money. Build upon these rules wisely and you’ll be set for life.