It’s no secret that professional athletes get hefty paychecks. In fact, many athletes earn millions of dollars each year. Surprisingly, a number of them manage to lose all of the money within a few years after retirement. However, when a professional athlete retires, they’re not retiring in their late 50s or 60s. The average retirement age of a professional athlete ranges between 28 to 33. This means that an athlete needs to be financially secure because they have a long life ahead of them. There are four ways an athlete can go about continuing to sustain their financial security.
1. Start a business.
It’s a good idea to start a business. Even when a professional athlete retires, it’s never a good idea to sit down and be idle. When a person is in their 30s, they still have plenty of energy to run a thriving business and build it into a multi-million dollar enterprise. If there’s one way to effectively work on wealth management for professional athletes, entrepreneurship is an excellent option.
2. Invest in real estate, stock and mutual funds.
Purchasing real estate is great because investment properties can serve as rental properties and they can also be passed down. It’s also good to invest in the stock market. Many people get nervous at the thought of the stock market, but it’s truly not as volatile as people think. It’s just really important to focus on wise investments. When people make knowledgeable and well-researched decisions before investing, they have a better chance at success.
3. Get rid of debt and spend less than you earn.
It’s never a good idea to hold onto any debt. There’s really no reason for a wealthy millionaire to have debt in the first place. Not only is important to get rid of the debt, it’s also best to live way below one’s means. When a person lives below their means, they’re able to save a lot more than they spend. Budgeting isn’t optional. It’s essential. To maintain wealth way into an athlete’s older years, it’s best to make sure that wise spending is not only practiced, but enforced.