September 22, 2020
Finances are a part of life that everyone goes through. Whether you find yourself as part of the corporate workforce or as a professional athlete, you are not exempt from the field of financial management. Money is what determines how you will live your life, and in the field of athlete financial planning, there is often a lot to it due to it being an unconventional field of business.
Athlete financial management can be complicated to do by oneself. Exemplary athletes are often on the receiving end of multi-million dollar contracts, which can disappear in a snap of a finger. To supplement the athletic lifestyle and ensure that the money made while doing the sports you love lasts longer than your career, accounting services can help.
Here are some tips to help you build a legacy that surpasses athletics:
1. Start Developing Good Financial Habits
Many professional athletes experience a shock when their first paycheck comes in. Many splurge and buy multiple homes, a garage full of brand new sports cars, and other luxury items. It always pays to get into good habits for saving, spending and investing money early on. In athlete financial planning, the important thing to note is that injuries exist in the sport, and performance is everything. Life-changing injuries can impact the contract athletes have significantly because injuries change the way even the best athletes of the time play.
Savings play a large part in securing a financial future, and investing the paycheck into properties, bonds, stocks, and other investments will allow athletes to live a great post-career life. If an athlete is forced to retire early and has no savings, it is going to be extremely difficult for them to keep up with life and their previous lifestyle.
2. Invest In Insurance
The sooner an athlete can invest in insurance, the better chance they have to remain a top-tier athlete. Health insurance is important in athletics, as the asset an athlete uses to make money is the human body. By investing in a good health insurance plan, athletes can protect themselves from career-ending accidents and injuries and other kinds of damage to their bodies.
3. Keep Income and Expenditure in Mind Early On
Understanding the income that will be made during athletic life is important, as this varies from athlete to athlete. Not everyone is going to be at the level of LeBron James in terms of skill and athleticism, so understanding the limits of one’s athletic abilities will ensure that everything is kept at a realistic level. Some athletes may not make the millions LeBron is making each year, but even knowing the limits of their income and expenditure can assist them in making good decisions.
4. Invest in Athlete Financial Management Services
Let’s face it, financial management and accounting solutions are not everyone’s specialty. While some people may have a good grasp of investing and other money-making concepts, it is often foreign to even professionals in the corporate world. This is why accounting services are important for all people. Athletes can benefit from these specialists, as they can assist with things like investments in property, bonds investments, wealth management, and planning for retirement.
5. Enjoy, but Not Too Much
Professional athletes work extremely hard in their youth to get to where they want to go. When making it to the big leagues, it pays to enjoy reaching the dream. Going overboard is another story, but by investing in athlete financial planning, money earned can be grown significantly. Invest, but also set aside money to splurge and live the dream. Athlete financial advice can assist with helping maintain the money made during an athlete’s career.
Conclusion
Athletes who make it to the professional leagues can often be blinded by the lights and swayed by their paychecks. This can cause issues when their careers do not work out. The important thing to do is to not spend too much money and create a good financial plan to iron out all the details of athletic life.
Aaron Parthemer is a financial advisor who offers athlete financial management and planning among other accounting services. For athletes who wish to make a legacy that surpasses the game, contact me for more information. Sign up on the website and receive a free guide on financial tips for athletes.
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