7 Financial Lessons From Professional Athletes

It’s no surprise that professional athletes earn a lot of money. Although the majority of us will probably never make as much as the league’s players do, it doesn’t mean we can’t learn from them.

Professional sportsmen teach some extremely useful lessons about personal money through their activities. They have dealt with everything from planning to side businesses to budgeting. And fortunately, they’re eager to share what they’ve learned.

Here are financial lessons from professional athletes from a variety of sports. It’s important to take notes, even if you’re just beginning with a financial objective.

Choose the best partners

In addition to his many accomplishments on the basketball court, Shaquille O’Neal has built up a strong business resume. He has collaborated with companies including The General Insurance, Krispy Kreme, 24 Hour Fitness, Carnival Cruise Line, and Papa John’s.

There is an explanation for the collaboration in each situation. Sometimes it’s simple: Shaq like doughnuts, thus Krispy Kreme makes sense (along with the fact that his broadcasting colleague Charles Barkley also enjoys donuts; the shop has a devoted patron). Shaq chose The General because he wanted to work with a firm that provided inexpensive rates since he recalled how difficult it was for him to pay for vehicle insurance when he was a college student. On the other hand, O’Neal has declined several possibilities that he felt weren’t a suitable match.

The finest companion of all, though? the head of his bank. Shaq rapidly spent $1 million on automobiles and jewelry the day after he joined the NBA, all in one day. His bank manager sent him a warning over the phone: you need to learn how to handle and care for your money or it will all go.

Take the time to locate the best match for you, whether you employ a financial advisor or tax accountant or are just shopping for your next insurance coverage. Working with someone who makes you feel uneasy or who doesn’t have your best interests in mind can only be detrimental.

study how to set a budget

With seven top-ten finishes in the NASCAR Cup Series and a victory at the 2008 Indy Japan 300, retired NASCAR driver Danica Patrick is the most successful woman in American open-wheel racing history. Off the field, she has landed rich endorsement deals with businesses like GoDaddy, making appearances in more than a dozen of the company’s Super Bowl advertisements.

She also has one of the best records among athletes for handling her finances. Patrick is supported by not one, but two Certified Public Accountants (CPAs). Simply put, one of the CPAs keeps an eye on Patrick’s daily money and expenditures.

You don’t need to engage a CPA to manage your finances or to make a budget to compare your income and expenses. You may learn information about particular issues using spreadsheets, digital trackers, and budget planners, as well as the Internet’s limitless resources. Some applications even include cash-back alternatives to give you some spending freedom.

Whether you’re attempting to save money for a down payment on a home or increase your wealth, knowing where your money is going is the first step toward achieving your financial objectives.

Spend money sensibly

Running back Alvin Kamara of the New Orleans Saints made a significant impression upon entering the NFL. He was named the 2017 Offensive Rookie of the Year and aided the Saints in their postseason run to the NFC Divisional Round.

He joined the team with a sizable signing bonus as well. How did Kamara spend the $972,772?

He deposited money in the bank before purchasing some chicken wings for himself. Kamara hasn’t revealed his favourite wing sauce or rub, but even a 50-wing combination would run you less than $100, making it a fully acceptable indulgence.

The act of rewarding yourself is perfectly acceptable. You might want to have a party because you just finished a big project or got a raise at work. An evening out might be the ideal way to unwind.

But be careful not to let that night grow into a week or to spend a cash windfall carelessly. Your money will last you much longer if you learn more modest methods to pamper yourself. You can use it to save money for emergencies, repairs to your home, and other long-term goals.

For the long term, invest

Steph Curry’s NBA career, which saw him win three titles and two MVP awards, may be familiar to you. Or perhaps his work on the golf obstacle challenge program Holey Moley is more well-known to you.

Curry has made money during the past few years regardless of the situation, but it wasn’t always like that.

Early in his career, Curry experienced a number of ailments, and it appeared that he would be one of the athletes who flamed out as a result of his frequent injuries. In 2012, the Warriors made him an offer for a $44 million, four-year contract. Despite being the best player on the floor, Curry’s contract placed him as the fifth highest paid player on the squad.

Curry though did not sulk. Instead, he utilized that money as a base to create an entrepreneurial empire. Curry wisely understood that, even by NBA standards, a “small” deal was “enough for me to be able to care for my family” and that it wasn’t worth the risk to try to be avaricious in order to gain more money right away.

The decision paid off. Curry then inked a $201 million contract with the Warriors and formed a number of additional alliances, including an extension with Under Armour that provides him stock in the company.

Get-rich-quick scams are rarely a part of the route to financial riches. Even a tiny amount saved or invested today might pay off in the future. And after you have established your value, such as in a job or a freelance arrangement, don’t be reluctant to demand appropriate compensation.

Don’t spend money mindlessly

Before leaving from the NFL at age 29, Marshawn Lynch, the former rushing back known as “Beast Mode” and a fan of Skittles, earned nearly $50 million during his time there. Lynch denied the rumors that he never spent a penny of his wealth, but he hasn’t exactly been irresponsible with his money either.

The rapper Mistah F.A.B., Lynch’s cousin, claims that the former running back maintains his money by “living like he’s broke.”

He continues to act as though “Cuz, let me grab $10.” stated F.A.B. “‘Oooh, $10? Because I’m uncertain. I don’t have it at the moment. What’s their cost? Oooh, $40? I’ll grab the $15 ones, please. He is like that, sort of. “Dude, are you serious?” you’ll ask.

Lynch was referred to as a “symbol of hope” by F.A.B. since he promotes financial literacy. You don’t have to spend money just because you have it; that’s true. While buying a new big-screen TV or a great pair of sneakers might be enjoyable, if you don’t actually need them, your money may evaporate faster than you realize.

Be ready for anything unexpected

The first overall choice in the 2012 NFL Draft, Andrew Luck, signed with the Indianapolis Colts. He performed admirably for the most part and occasionally shown brilliance, but at the age of 29, shortly before the 2019 season, he unexpectedly declared his retirement.

Lynch’s retirement at the same age made more sense because NFL running backs frequently see a decline in performance around age 30, while Luck still appeared to have about 10 years left. The quarterback said, however, that ongoing injuries and the necessary recovery time had “taken the fun out of this game” and that the only way he could proceed was to “remove himself from football.”

According to the Employee Benefit Research Institute, 46% of retirees do so sooner than anticipated. In addition, just 30% of employees actually work for money after retirement, compared to 72% of those who intend to.

Even if you have a plan for your money, you must be ready to deal with whatever comes your way. It might not be an early retirement; perhaps you’ll need to buy a new automobile after a collision or make significant house repairs following storm damage.

Consistently save money for retirement and maintain a nest egg on hand in case of crises.

Recognize the influence of side businesses

Very certainly, you’ve used a ride-sharing app to get a ride before. Yet, it’s unlikely that your driver was a 330-pound, 6’5″ defensive lineman.

Now, if you were a resident of Miami in 2013, you could have had the pleasure of such an encounter. A.J. Francis, a defensive end for the Miami Dolphins, started driving for Uber as a side job while finishing his master’s degree and dealing with many large wedding bills.

Because NFL players don’t get paid during the offseason, Francis had been without a salary for approximately three months. He had just begun earning $1,000 per week from training camp sessions, and he was also making between $16 and $30 per hour from his side job driving for Uber.

A side business may be a terrific way to generate additional cash. While there are several options for side businesses, something like a ridesharing app allows you to choose your own hours. Try being innovative, and you might discover a pleasant new technique to increase your riches.