Last updated on September 4th, 2024 at 08:40 am
Athletes are one of the professionals who are high in demand and receive Good Income from what they do. Unfortunately, I have seen many worldwide popular athletes go bankrupt and live miserable lives. One of the reasons I believe Financial Planning for Athletes is crucial.
Professional Athletes are no doubt busy most of the time and don’t really get time to plan their life. One of the reasons might be that they get a lot of unplanned and get paid handsomely.
In my experience while talking to many of my Athlete professionals, I came to know they never think about planning. I was not much shocked as I see most of the people ignore planning their finances.
Athletes are one of them and it’s one of the reasons sometimes they lose all of their hard earned money and encounter financial challenges in life. In this article I will share some of the most crucial reasons and ways to Financial Planning for Athletes.
8 Financial Planning for Athletes
1. Keep Records of Your Working Days
One of the major most of the professional spend is on Regular Tax. Unfortunately it’s one of the ignored areas. We all know that athletes make thousands of dollars per day and their earning goes beyond the line.
On the other hand, some days you may be free and having fun at home or on holidays. Therefore, In order to save your money you must plan your spending accordingly. I believe Financial Planning for Athletes can help them create an Insane amount of wealth for generations.
If you are in shortage of time or find yourself unqualified, there are people who are eager to work for you. All you need to do is, hire an accountant or Chartered accountant to manage your spending and guide you to your financial management.
2. Take Advantage of Government Scheme
When it comes to managing your money, there are many ways the Government itself offers us. Unfortunately, not many of us are aware of these government schemes. While Doing Financial Planning for Athletes I suggest taking advantage of retirement plans that include tax savings as well.
If you are aware about these schemes, you might think about less returns from these investments. However, remember this return is fixed, secure and gives you tax benefits of these earnings.
Individual (solo) 401k Contributions and Back-Door Roth IRA Contributions are two retirement plans for athletes that can play a crucial role in your financial management.
Investing in these two plans can change the entire budget of your future and secure the upcoming days of your family.
3. Have a Home and Save Extra Tax
Buying a house doesn’t only make you an asset but provides you with the tax benefits as well. Investing in Lands or Ready possession Homes have different amounts as Tax so saving and building an empire protects your future.
While buying Home, get all the information about your spend and Income in future. In my opinion investing in homes provides you recurring income for the rest of life. It also saves a lot of your current Income in the form of tax.
While you are exploring the various Financial Planning for Athletes, It’s crucial to stay connected to your planner, If you have one, and stay updated about changes in the Tax system. It’s because often things change and unawareness can take away a lot of your money in the future.
5. Use Sip as Investment Strategies
Athletes Often ignore adopting a regular investment habit as their Income days might differ from other professionals. However, regular saving or Investment habits helps keep us aware about our finances.
While sharing these tips for Financial Planning for Athletes, I feel it’s my responsibility to make you aware about SIPS or regular savings. Sips in Funds are super helpful in making your investment grow fast, if you chose such Funds.
You may adopt any other regular saving system that takes away a chosen amount on a specific day you have selected. Such a small strategy will guide you to a secure, and abundant future, which most of the athletes don’t think about.
In order to do it effectively, calculate the cost of your current lifestyle, multiply it with ten and Invest the amount accordingly. Living in the present is the way to live peacefully, but planning your future based on your present days is a wise strategy.
5. Adopt a Habit of Charity
No, I am not talking here to force you to help others but I am suggesting you to take benefit of charity. Yes, Charity is beneficial as it’s a way to save a large amount as Tax benefits. Also, It makes you a better human being by connecting to needy people.
There are thousands of organizations who are helping those who are homeless.
Connect yourself to one of them and help them feed hungry and give home to the homeless. It doesn’t take much of your time but saves you money and gives you an opportunity to become a better human being.
Regular visit Gives you a chance to connect to more audience and Inspire others as Athletes. Helping Needy people also helps you stay grounded and have a high thinking, Growing Mindset. While sharing my view about Financial Planning for Athletes, guiding you to the spiritual path is my duty.
In other words, while making Money, managing your money, keeping your spiritual self on the line will help you grow more abundantly.
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6. Disability Insurance is A Must
As an Athlete, your income source is your physique so keeping your body fit and active is crucial. We all are unknown to those uninvited incidents that steals our ability. It’s crucial to ensure your health and Income source.
There are all types of Insurance but for a professional athlete, Permanent disability insurance is must for you. Ig gives you a sense of security for the rest of your life and keeps you healthy and fit.
Yes, When you plan and secure any specific area of your life, Life ignores to disturb that area of your life. Therefore, take charge of your future Fitness and earning ability, and have disability insurance without any delay.
7- Keep Your Family on Top of Priority
Family is one of the focus reasons we all want to grow in life, especially when it comes to finance. If you care for someone and want to see them happy, even if you can’t work for some reason, let someone care for them.
Yes, Have family insurance and funds that can work and take care of your family in unfortunate circumstances. We don’t know what life can present to us and when. Therefore I believe it’s wiser to protect your family and yourself is crucial.
While sharing these Ideas about Financial Planning for Athletes, I suggest you keep your family and your health on top of your priority list and Invest Accordingly. Have an Investment advisor and ask them for your requirements, I believe they guide in the best manner.
8. Ensure The Proper Setup of Your Business
Well, I am confident that you are doing well in life, However, we are talking about future planning for the worst case scenario. Plan your future in such a way that no matter what life serves you, never let your lifestyle go down.
In other words, have a business that does not require your presence yet create fortune for you family and you. There are many ways to build a sustainable business that can earn you more money than you can think.
Athletes are always a brand and Brands need no explanation if they are focused to provide the best to their fans. There are many ways you may create a brand using your name and make millions.
Therefore, I never fail to share ideas of side business while suggesting Financial Planning for Athletes. You are already enough yet, thinking to have the Universe is not greed, it’s Calling.
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Final Words: Have a professional Investment advisor who can guide you to Invest in the right direction aiming your future to be better than now. Along with this, you must have someone professional who can guide you to save and protect your money while living the lifestyle you desire.
I am confident that these Financial Planning for Athletes will guide many simple and unaware people to take care of their hard money more wisely. If you found this article helpful and informative, share it with others and make them protect and invest their money in the best tools.
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