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.

Do’s and Don’ts of financial planning

It is important to turn to the right person for financial advice; choosing the right people could be the difference between growing your wealth and losing everything. If you don’t have the knowledge or the time to do your own financial planning, there are professional advisors that can help.

Here are few do’s and don’ts regarding your financial planning:

DO

  • Hire an independent financial advisor
    A professional financial advisor with a proven track record should have the knowledge to help you with many different aspects of your financial planning. He or she should advise you on a variety of aspects related to the management of your money and assets as you could not be qualified to handle those difficult questions. As part of their main duties, they would help you:
    • ​​​​​​​Set your financial goals/objectives
    • Make the right choices to reach your objectives
    • Advise you on how to invest your money
    • Monitor your assets
    • Revise your objectives over time
    • Advise you on the types of insurances you need

 

  • Visit your bank
    ​​​​​​​If you do not have the resources to hire a financial advisor, obtaining advice from your bank is a good alternative.

DON’T

  • Rely only on your family and friends
    Even though they might have been always on your side supporting you career, they might not be qualified to deal with financial issues. It can even lead to unnecessary conflicts.
     
  • Rely only on your agent
    Your agent is entrusted with your business and acts on your behalf in negotiating your contracts with professional teams or organisation. Agents can offer a wide range of services but not all agents have the necessary knowledge and qualification to take care of your finances. Even if your agent or agency offers financial advice, it is still recommended to have an independent advisor overlooking your finances.
     
  • Rely only on your coach or teammates
    You probably trust them on the court but that does not mean that you have to trust them when making important financial decisions. The pressure to go along with a new plan that will ‘make you lots of money’ or trusting the advice of a veteran player may be strong, but the desire to protect your own finances and make educated decisions should be stronger.