4 Frugal Actions Draft Picks Need To Consider Once Going Pro
The NFL draft is this weekend and many young men will soon be signing contracts in the high six to seven figures. The minimum salary for 1st year NFL players is $495,000 dollars, excluding bonuses and appearance fees. It’s important as a young professional that hasn’t dealt with this sort of money to have the right mindset because you could end up losing it (spending it) before you even receive it. As an athlete who has worked their whole life to make it to this point you will obviously want to reward yourself and thank the people that helped you get there. Maybe buy your mom a house, take yourself on a nice shopping spree, or buy a dream car but it’s important to get your money management in order before you do any of those things. Your career as an athlete on average is only 3-5 years so you have to make your money last long term.
Once you go pro and are officially under contract, your life will go 100 mph. You will have to fight for your spot on the team, handle media and appearances, deal with family and friends, etc but it’s important to make sure you get on top of it with your financial stability and understanding of money management. Here are 5 Frugal actions draft picks need to consider once going pro:
How are you going to allocate your money? Do you know how much your expenses are? How much are you spending on rent compared to your income? What budget method works best for you to follow strictly.
As a rookie, one of the first things you should do is create a budget. It will help you stay on top of your money and give you peace of mind from the beginning because you are taking the initiative in controlling your money.
Plan Estate/ Protect Assets
You are now in a situation where you can provide for your family. It is important that you protect your assets and make sure that if anything happens to you, you and your family are taken care of. One of most unfortunate situations is if God forbid, something happens to you and your estate and assets aren’t protected leaving all your hard work for nothing.
Build Your Team
“If you want to go fast, go alone…If you want to go far…go together”
Pay Down Debt
Whatever debt you have, get rid of it. Student loans, credit cards loans, agent loans, etc. pay it off. You have a great opportunity to start your adult life with a clean slate. Don’t let interest build when you can create compound interest positively. As famous financial guru, Dave Ramsey pushes, the easiest way to build real wealth is simply getting out of debt and allowing your money to work for you.