There’s a big difference in what you’re being paid once you go pro. Financial planning for professional athletes needs to be a top priority. When you start earning considerable paychecks, you need to manage your money so that it’s around well into the future. If you simply live in the moment with your money, it won’t be there when you need it the most.
Be Aware of Your Career Potential
Professional athlete careers vary considerably. While some players, like Tom Brady, are able to stay on the top of their game for over a decade, it’s not the norm. Depending on the sports organization that you end up playing for, the average career length may only be three or four years. This means that you will get paid very well for these years. However, what happens when your career is over?
You need to figure out how to invest appropriately so that your hard-earned money is around for years to come. You may want to make a few impulse purchases, such as buying a home or a car. However, an experienced advisor can show you how to make better decisions with your finances.
Plan for the Future
It’s important to plan for the future. Particularly if your career is going to be short-lived, you want to make sure that your impressive paychecks are around for the future. You may be able to learn some discipline so that the majority of your paychecks are invested, allowing you to live off the interest. This way, too, if your career does and earlier than expected, you have money to live on years from now.
Working with an experienced financial advisor will make all of the difference in the world. As soon as you go pro, you should begin seeking their advice.