Being an athlete isn’t easy – you need to invest a lot in sports equipment, shoes, jerseys, training, etc. Pursuing a career in sports can be especially expensive when you start out, without any sponsors.
So how can athletes save money? How do they manage their finances more efficiently? Read on to learn more.
8 superb money-saving tips for athletes
You’re already great at sports, now you can also become a pro-money-manager. Take a look at the following tips to secure your financial lives post a sports career:
Assess your income and expenses
To understand their income and expenditures, knowing exactly what comes in and what goes out is one of the first things athletes must do. The fact is that sportspeople lead busy lives and travel a lot, and sometimes have to move from one country to another, and their outgoings quickly escalate to amounts that aren’t sustainable after their careers end. Understanding your expenses will make controlling their finances much easier in the future.
Inculcate positive money-saving habits
Athletes should start saving as soon as possible. In the sports world, there are many uncontrollable variables that can affect the lives of young athletes. Establishing good habits early will leave them in great stead for the future. Athletes need to plan in advance for their future (such as how much money they will earn, how often they will get injured, etc.). The sooner they do so, the better their odds of retiring. Sporting careers usually end at the age of 35, and with a lot of time left, the athletes should be able to provide for themselves and their families.
Get insurance for yourself and your family
Again, the sooner you act, the better. When athletes are fit and injury-free, they should insure themselves early on. You should protect your body immediately because it is central to your athletic career now and in the future. Several insurance policies customize their coverage to sports, such as career-ending insurance, which pays out if an injury causes an untimely retirement. However, typical insurance policies are not able to replace the income of sportspeople like footballers, whose income is relatively high.
Don’t fall victim to financial scams
It is likely that athletes will be targets of money scams and aggressive tax schemes due to their public importance and perceived good income. Whenever something seems too good to be true, it probably is! You should always take a solid approach to investing.
Take the help of professional advisors
The athlete can remain totally focused on their profession when a strong, trustworthy team of professionals surrounds them. Most families or estate agents want to maintain control, so they keep professional advisers at a distance. This can result in far more harm than good. A team of agents, lawyers, and tax advisers working together will help minimize problems and ensure that you are taken care of smoothly.
Manage your debt responsibly
Paying down your debts (especially your mortgage) is essential when your career is relatively short and can be shortened due to injury. From the perspective of financial management, athletes may want to spend extra money on other luxuries, but clearing debts should be a priority before spending extra cash again. In addition to reducing spending once they quit sports, short-term mortgages repaid mostly or entirely at retirement provide them with an added sense of security in their post-sporting lives.
Don’t overlook the future while enjoying your present
Keep a firm focus on the future while appreciating the perks of being a sportsperson. Most athletes reach their peak earnings within six to eight years of starting their careers, but most have a career that lasts 15 years or more. In other words, athletes should have fun, buy what they can afford, but always keep an eye on the finish line. An important aspect of success is balance.
Aim to achieve financial independence
When an athlete reaches the end of their professional career, they should be financially independent so that they can take control of their future. Athletes then have the privilege of deciding exactly what they want to do for the rest of their lives without being pressured by financial worries. Their independence will be a big help in transitioning into life after sports.
Athletes have a glorious but relatively shorter career span, which makes it even more crucial for them to become financially resilient. Emergencies are unprecedented in the line of sports. Therefore, it is vital for athletes to have enough reserves to spend the rest of their lives stress-free.