How do I look after my finances?
Key Learnings
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Financial planning is important for everyone but especially for professional athletes as their playing career tends to be relatively short and unstable due to the risk of injuries.
Professional athletes are likely to enjoy peak earning and make 50-75% of their lifetime earnings before age 35.
Financial planning can be complicated. It is important to turn to a professional for financial advice; choosing the right people to advise you could be the difference between growing your wealth and losing everything.
Creating a budget and monitoring it at regular intervals will help you remain financially stable.
Stay out of financial trouble by being careful about your spending and ensuring you are aware of the risks of gambling and illegal sports betting.

Creating a budget

Whether you are a multi-million-dollar player or an athlete at minor levels, being aware about what you are spending on a monthly basis is most useful. The best and the simplest solution to remain financially stable is to create a budget and monitor it at regular intervals.

Here are the steps to creating a personal budget:

  • Gather your financial statements
    This includes bank statements, investment accounts, monthly bills, and any information regarding a source of (monthly) income or expense.
  • Record all of your sources of income
    This should include all your income. Using the net income is fine if your taxes are automatically deducted. It is better to underestimate than overestimate when listing sources of income.
  • Create a list of monthly expenses
    Track and write down all expenses you incur over the course of a month. Include everything that you spend money on and don’t forget about variable expenses (for example, expenses that fall once a year). This time it is better to overestimate than underestimate.
  • Total your monthly income and monthly expenses
    If the result shows more income than expenses, you are off to a good start. If not, you will have to make adjustments as your current lifestyle is not sustainable in the long-term.
  • Adjust and review
    It is important to monitor your budget over time as you might find expenses that you can cut down on or experience an increase in income.