Every adult should learn how to plan for their financial future sooner than later, no matter what their career is. Famous professional athletes are no exception to this rule. The career of a professional athlete is usually short-lived but earns mass amounts of money. For these reasons, a professional athlete must take different things into account [when it comes to their finances] than an average person.
Invest in Health Insurance; Athletes are at a higher risk of injury than the average worker. Whether the athlete plays baseball or wrestles, they must go through intense training, not to mention their actual game or match. Both of these can result in injury. Some injuries can be expensive to treat, which is why having good health insurance is so important.
Every good athletic employer should provide their employees with health insurance. However, some insurances might not cover everything an athlete needs. For this reason, it’s in an athlete’s best interest to invest in additional health insurance premiums.
Start Retirement Savings Early; One of the most important things when it comes to financial planning for professional athletes is to start a retirement fund early. On average, professional athletes only work in their field for about five years. During this time they may earn millions of dollars, but how much a professional athlete will earn after they retire from playing sports can vary greatly.
It’s best for a professional athlete to start a retirement plan as soon as possible. This way, they can save money for later in life to use when they are elderly or to invest in their next career.
Think About a Post-Sports Career; It’s not usual for athletes to simply sit back and do nothing once their career in playing sports is over. Instead, many former athletes continue to work in sports in one way or another. Some of the most popular career choices for former athletes include sports coach/manager, team executive, and sports commentator/broadcaster.
Unrelated to sports, some former athletes choose to become business owners. They use their fame to promote their business. Opening a business or starting a new brand can be a great financial choice for a former athlete, as it keeps revenue coming in and allows them to pursue a new passion.
Whether you are currently a professional athlete or you are aspiring to be one, consider these financial planning tips. When it comes to finances, it’s better to be safe than sorry. So, open a retirement account, invest in health insurance, and consider what you will do once your career ends!