Team Frugal: NBA Player Michael Carter Williams
Being frugal is about more than being stingy with your money. It means being prudent, smart and economical with your finances and career decisions. Every Tuesday, we share profiles of athletes that exemplify what it means to be A Frugal Athlete.
Michael Carter Williams is this week’s TeamFrugalTuesday Pick.
Michael Carter Williams is a basketball player in the NBA who just recently signed with the Charlotte Hornets. He was originally drafted by the Philadelphia Sixers after a great college career at Syracuse.
Michael Carter Williams is a great example of an athlete preparing himself to avoid the pitfalls many athletes have when making a boatload of money at a young age and in quick succession.
Thanks to his parents, Carter Williams started off on the right foot off the court. His mother created a management team to control his finances and put his rookie contract into a trust where he was ineligible to touch for three years. According to the Philadelphia Inquirer, Carter Williams’ trust was the total guaranteed amount of his rookie contract, which amounted to $4.5 million dollars and he was only allowed to spend his money made from endorsements. A trust can work in many ways but the gist is that it's a fund consisting of assets held to by trustees to be opened at a specific time.
One lesson both individuals and athletes can take from Michael Carter Williams is that just because you are an overnight millionaire, it doesn’t mean you should lose your discipline and sound judgement. Carter Williams didn’t have to agree to putting his money in a trust but he understood, that at his age, he didn’t understand how to manage his own money yet or at least as well as the team he had around him. Michael instead trusted his family and advisors to look out for him, while putting his money aside to give him time to focus on basketball and learning the details of life on and off the court.
Early in your career you can easily get sidetracked especially when you have all this money and no one but yourself to worry about; the luxury lifestyle can catch up to you quick. Michael Carter Williams is a great role model to follow when it comes to being frugal.