By Marianna Kazazi, The Sports Financial Literacy Academy
Financial fitness means feeling confident and secure about your financial situation. It means being able to manage your money in order to meet your current and long-term needs. As with any type of training, becoming financially fit requires learning the principles and best practices that others have used to achieve their financial objectives.
Athletes understand the dedication required to maintain peak physical condition. The same principles of discipline, consistency and focus, seamlessly translate to the domain of financial well-being.
Developing good financial habits includes building foundational elements for financial wellbeing. Specifically, athletes should start budgeting training. Commencing with budgeting training lays the groundwork for ensuring funds are allocated sensibly—for emergencies, savings, and future investments. Embracing a disciplined savings routine, setting and adhering to consistent goals, becomes the cornerstone of securing financial stability.
Athletes should also consider establishing a savings routine, a structured practice focused on not only setting but also adhering to consistent savings goals. This routine involves creating a plan to regularly set aside a portion of their income or earnings toward specific financial targets. Consistency is key: by consistently allocating a set amount towards savings, they can steadily build a financial safety net or work towards future aspirations. Regularly revisiting and adjusting these savings goals as their financial situation evolves, ensures that their savings routine remains relevant and effective over time.
Furthermore, athletes should contemplate starting their investment journey, which is an important step towards securing their financial future. Exploring various investment options tailored to their comfort level with risk becomes paramount. This exploration involves delving into investment avenues, understanding their risk appetite, and aligning these choices with their financial objectives. Seeking guidance from professionals who have experience in athlete-specific financial planning is very important, as it enables the provision for tailored advice and strategies that consider the unique challenges and opportunities athletes encounter throughout their careers.
Another crucial factor contributing to athletes’ financial well-being is having themselves and their assets adequately insured. Safeguarding their hard-earned assets with appropriate insurance coverage is essential. Injuries or career changes should not disrupt their financial plans.
Financial fitness also depends on psychological aspects that shape how individuals handle money. It involves a mental shift, reevaluating beliefs about wealth and spending to prioritize long-term financial well-being over immediate desires. Moreover, developing skills such as adaptability and resilience, are vital for navigating financial challenges.
In conclusion, the principles of discipline and focus that athletes apply to their training may extend seamlessly to financial health with some effort. By prioritizing budgeting, savings, investments, and insurance while shifting mentally to prioritize long-term financial wellbeing, athletes can secure a strong financial future beyond their athletic careers.
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].
