Even though athletes make tons of money during their careers, they are among the most likely of the very wealthy to go broke after retirement. This is due to a multitude of factors. Here are some tips from financial experts on how young (and even older) athletes can save their money to prevent being in the poor house in their golden years.
1. Don’t buy every toy that you see. An old adage to live by is that just because you can afford it right now does not mean you can afford it later on. Too many athletes, especially those who come from deprived childhoods, get caught in the trap of wanting to treat themselves to “toys.” This attitude may make them feel better right now but it does little to ensure their financial stability in the long term.
2. On the reverse side, constantly buying gifts for other people is not a good idea either. The problem comes from the fact that showering the recipient in gifts creates not only financial obligations for the giver but it can significantly stifle the growth of the receiver as well.
3. Make sure to get the help of professionals, such as financial advisors and attorneys. These are people who can read over those contracts and make sure that everything you sign is in the best interest of YOU! Remember, when it comes to wealth management for professional athletes, it is best to leave it in the hands of the people who went to school for it.
As you can see, it is best not to be bogged down when you are young with needless spending and bad habits. Your earning potential as a young athlete is very limited so you need to take advantage of it while you still can.