Financial Tips Learned From Professional Athletes’ Mistakes

Many professional athletes end up filing bankruptcy, and whether it be because of the athlete’s financial inexperience or because the athlete falls victim to financial schemes, this financial woe can be avoided. Though many people will not witness the sudden increase of wealth that athletes do, everyone can benefit from three financial lessons learned through the plight of professional athletes:

1. Slow down the spending and focus on the game (or your job). It is also important to take the time to rationally review potential schemes “experts” suggest you buy into.
2. Do not spend money recklessly. Many athletes do not look far enough into the future to realize that their substantial pay checks will be cut or nonexistent if they get traded or cut from a team. Saving money now is the best way to plan for the uncertain future.
3. Take the time to scrutinize anyone and everyone who attempts to give you financial advise. Though a financial advisor can be a major asset to professional athletes, it is important that the person chosen for the job is trustworthy and  competent. Relying on a teammate or family member to either serve as an advisor or suggest potential advisors can lead to financial mismanagement later down the line.

See Ron Lieber, Financial Lessons From Sports Stars’ Mistakes, The New York Times, Sep. 9, 2011.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.