By Vasilia Polycarpou, Contributor
With athletes being faced with unique financial challenges, characterized by unstable income flows, and a short career span, based on their performance, which could be terminated at any moment due to an unexpected injury, there is great need for developing a wealth-building attitude.
In order to build a financially stable future, athletes need to cultivate a certain money-positive mindset, which prioritizes saving and investing for the future, instead of living in the moment and spending excessively. A wealth-building mindset translates into having a long-term attitude in terms of financial goal-setting. This mindset also encourages diversification of income, through involvement in endorsement deals, business opportunities and investments, to create multiple income streams.
To nurture this kind of mindset, the first step would be educating yourself on core financial concepts. Having a financial advisor, in addition to doing your own independent research on financial matters would be key in improving your financial literacy levels. Continuous financial learning is vital for having a money mindset makeover!
Moreover, setting clearly defined financial goals, separated into short-term and long-term ones is necessary, in order to create your own measurable path towards financial freedom. However, sticking to this plan also requires discipline and accountability. Specifically, the plan towards achieving these long-term goals could require budgeting in order to keep track of your income and expenditure.
Another important step in developing a wealth-building attitude, would be learning about the various investment options out there, and evaluating potential risk and return, in order to make an informed, wise financial decision, which takes into account the level of risk you would be willing to take. It is also important not to act emotionally when it comes to investment decisions, but to ensure that things actually make financial sense for you.
Having a healthy and positive money mindset can prove to be life-changing since it does not only reduce your financial risk but also helps you build a legacy over time. It can empower you to be in control of your financial situation and make decisions that are in line with your values and ambitions, whilst at the same time granting you peace of mind for your life post-retirement.
The Money Smart Athlete® Blog is established and run by the Sports Financial Literacy Academy® (SFLA). Through its education programs, the SFLA has the vision to financially educate and empower athletes of all ages to become better people, not just better athletes. For more information on our courses, our SFLA Approved Trainer Program®, and how they can benefit you and your clients, please get in touch with us at [email protected].