In the world of professional sports, success equates to talent and skill on the field. One thing every pro learns (sometimes the hard way) is that when you’re off the field, setting yourself up for success outside of the game is equally important.
Beyond the physical and mental aspects of wellness, there are valuable lessons we can all learn from a pro athlete’s approach to financial wellness. No matter what your income, these tips translate into financial success:
Budget Wisely
Everyone’s heard of the broke former athlete. No matter your income, everyone is at risk of facing financial challenges if you don’t budget well. Between the cost of living increases and “keeping up with the Joneses,” living within your means is harder than ever. The most critical factor for long-term financial success is budgeting. Our parents used to write it all down in their checkbooks, but we have apps for that. If you aren’t using a free budget app, now is a great time to try one.
Invest in Your Future
Look at the way any pro invests in themselves. From their workouts to their diet, their inner circle, and more - they’re investing in themselves. Apply this mentality to your finances, and you’ll be on the right track.
Contribute to a retirement account.
Build a diversified investment portfolio (steadily secure various taxed, tax-deferred, and tax-free assets).
Prioritize long-term financial goals; nothing happens overnight.
Protect Your Assets
Pro athletes often insure themselves against career-ending injuries to protect their future earnings. Insurance is often looked at as a bill or an annoying expense. Pros know it’s actually an asset. Individuals can implement this mindset and set themselves up for significant wealth building using insurance as a responsible leverage. Ask a professional to assess your finances and goals, then take steps to protect your assets to mitigate risks and grow wealth through insurance policies, estate planning, and asset protection strategies.
Plan for Life After Your Prime
For pro athletes, income years are limited. For much of the population, we work until our mid-60s, give or take. We hope to live much longer than that, and it's essential to plan for life after your prime earning years.
Pros learn about saving for retirement pretty quickly and creating a financial plan that aligns with your long-term goals is not as hard as it used to be. If you do not have a financial advisor, trust me when I say they’re worth their minor percentage. Even if you’re not investing a lot yet, that’s ok; work with a professional to set yourself up for the best possible future.
Here’s the thing: pro athletes have one undeniable thing in common. They’re disciplined. If you can apply that level of commitment to your finances, you will be successful. I’m always happy to answer your questions; reach out here: jeff@enhancedfunding.com or call 773-318-9608.
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