Football season is back. How do players make their money last? (90-second read)
We always hear stories about players getting huge salaries with mega payouts. And of course, we hear about the 10,000 square foot houses, fancy cars, and anaconda skin-wrapped couches. (Who doesn’t love a cushy anaconda-skin couch?)
But let’s face it, being a pro athlete is a tough career. If you get injured – you’re done. If you miss a few too many big plays – you’re done. If you’re old, well… don’t get old.
The average pro football career is just 3.3 years. So you need to be smart with your earnings. Even then, Sports Illustrated estimated that 80% of retired NFL players go broke in their first 3 years out of the League.
So with the odds of a lengthy career against you – how do you make your money last?
Meet one man who’s doing it differently: Glover Quin – a safety for my hometown favorite Detroit Lions. #reversethecurse
Apparently, there are 2 traits Glover possesses that most do not: He keeps his expenses low by spending only 30% of every dollar he makes, and he invests 70%. That’s pretty incredible.
According to an ESPN article, Glover estimates he has made nearly as much investing as he had playing football for the past 8 years. If this is true, that adds up to quite a bit of cash. Because as of 2017, he’s earned more than $21 million, before taxes, in his 8-year career.
Um, how can he save that much?
Supposedly Glover is really careful about spending money. Really, really careful. As stated in ESPN, “for the first 3 years of his career, Glover lived on $6,000 a month, and he invested the rest of his salary in well-known, publicly traded companies. His teammates called him cheap, but he stuck with his plan.”
The lesson for all of us:
Even though some players get big paydays, it comes down to the same issues that pertain to everyone: You have to be smart about your money. Here are three simple tips:
1.) Make a budget:
What are you making each month? What are you spending? What are your short and long-term debts (credit cards, car loans, mortgage, etc.)? Once you know these numbers, set a budget and stick to it.
2.) Create a financial plan:
Chart out your future needs and goals. At what age do you want to retire? What do you expect your income and expenses to be in 5 years, 10 years, 20 years? Don’t forget to consider family expenses if they apply, will you be paying for a child’s education, wedding, etc.?
3.) Put your money to work:
Save and invest at least 10-15% of your income. (If you can pull a Glover and save 30% – great.) Invest through a retirement savings account to reduce your taxes and help ensure your retirement.
We leave you with this quote from Robert Kiyosaki which sums it up nicely: “It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.” And remember Glover – No huge houses, no fancy cars, and no snake-wrapped couches. Just living modestly, and building an empire.