By Aris Costeas, The Sports Financial Literacy Academy
One could argue that money is not everything; it cannot be denied that its significance lies in enabling a comfortable life. To live a comfortable life means that you reach financial freedom through financial goal setting. Athletes must think long-term when setting their financial goals, as a sports career may be successful but for most athletes it may only last for a few years. From that point onwards they have to live off the savings set aside while being active in sports. These savings are most definitely the results of the financial goals they had set during their athletic years and the earlier they had started, the better off they are.
Financial Planning
Optimal financial planning is crucial for athletes, requiring a conservative spending approach and substantial savings during their athletic careers. The unpredictable nature of athletic careers highlights the importance of financial preparedness for potential career-ending injuries. Many renowned athletes have faced unexpected career endings, leaving them financially unprepared for life after sports. This financial unpreparedness forces athletes to abandon their previous luxurious lifestyle after retirement. It’s vital for athletes to set smart financial goals, considering their future needs and potential career-ending injuries. Athletes should avoid excessive spending, focusing instead on saving a portion of their income for the future. It’s essential to enjoy a comfortable lifestyle while ensuring financial security after their athletic careers end. Being wise about financial goal-setting ensures athletes can maintain their desired lifestyle beyond retirement.
How to achieve financial planning
There are various ways that athletes can make this possible, especially if they are high earning athletes or have a great reputation. A short list of some of these ways includes: making smart investments in stocks, bonds, real estate, etc., creating income streams from branding by using their reputable name as an athlete, and/or through entrepreneurship by starting their own business. Undoubtedly, making successful investments, building a prosperous brand, or becoming an entrepreneur and innovator is not an easy task. Making the process easier, involves acquiring knowledge about it and enlisting the support of the right advisors and resources.
To learn more about how to be smart about investing and how developing your own brand, business, or innovation, can help you create additional revenue streams after your sporting days are over, you can take a look at a plethora of previous blog posts which offer guidance on how athletes can achieve financial independence during and beyond their sporting days.
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].