Athletes Let’s Talk About Money! (Part 1)
The top student-athletes in college sports will get a chance to become instant millionaires when the NFL and NBA hold their drafts. But lets fast forward just 3 to 5 years down the road, and many of the NFL and NBA rookies, like players before them, could end up broke.
Did You Know…
Sports Illustrated estimated in 2009 that 78 percent of NFL players are bankrupt or facing serious financial stress within two years of ending their playing careers and that 60percent of NBA players are broke within five years of retiring from the game.
Why Do Athletes Go Broke?
There are several major factors that contribute to the financial troubles of professional athletes. When a 21 year old kid suddenly gets a huge chunk of money without the right guidance and proper education he will have the tendency to spend it fast! Then before they know it they are out of the league, out of a job and their income drops significantly. Then there are always those hangers-on who flock to the rich and famous and make all types of attempts to try to get their hands on the money. Also many athletes live beyond their means and use their new found lifestyle to make huge purchases that usually result in negative financial consequences.
The Truth is…
Many pro athletes may assume the money will keep flowing in for years, but that’s usually not the case. The average pro football career is only 3 and one-half years, according to the NFL Players Association, and a lot of the money that makes the contract-signing headlines will never be paid.
What’s the Solution?
Best selling author Robert Kiyosaki said, “Academic qualifications are important and so is financial education. They’re both important and schools are forgetting one of them.” Most Student-Athletes who become pro athletes have not received a proper education when it comes to money. Being a former college football player and Academic All-American I can say that the knowledge and experience i’ve gained concerning money, wealth, assets, finances and entrepreneurship has come from education I have gained outside of college and any public school system. The truth is we go to school to learn to work hard for money instead of learning how to have money work hard for us! Wealthy people are able to not go broke because they are educated about money and have learned how to make their money and time work for them instead of working hard for money and using up all their time doing it.
The Basics of financial education
During my work teaching and training student-athletes, former and professional pro athletes I’ve found that most athletes don’t even know the elementary basics when it comes to financial education so I’ll give you a few powerful definitions and examples.
•Profit-the compensation accruing to entrepreneurs for the assumption of risk in business enterprise as distinguished from wages or rent.
•Wage-a payment usually of money for labor or services usually according to contract and on an hourly, daily, or piecework basis
What’s the difference between Profits and Wages? John and Steve both have $100 in their pockets and decide they want to make $500 more to go on a nice vacation. They set a goal to each make $500 by the end of the week (7days). John decides to go work at McDonalds for $10 a hour. This means if he works 50 hours he can reach his goal of $500 for that nice vacation. Steve decides to use his $100 to buy 50 iPhone cases at $2 each. Steve then takes the 50 iPhone cases he purchased for $2 and sells them for $10 each to his friends, family and everyone he knows who has a iPhone. Steve sold all 50 of the iPhone cases at $10 each. He makes an $8 profit on each sale and reaches his goal of$500 for his vacation.
•Buy-to acquire possession, ownership, or rights to the use or services of by payment especially of money : purchase.
•Spend-use up or pay out. exhaust, wear out, to consume wastefully : squander.
What’s the difference between Buying and Spending. Stacy and Jennifer both have $300 in their purses. Stacy decides to spend all of her $300 on a shopping trip where she buys 2 new pair of heels and some new outfits. Jennifer decides to go shopping with Stacy and only spend $150 on shopping. Jennifer decides to use her remaining $150 to Buy specially designed rubber wrist bands with positive messages written on them like, “I Can Do It,” “Only Be Strong,” and “Make It Happen.” Jennifer buys 150 of these wrist bands for $1 each with the idea to sell them for $2 each and make $150 profit and spread a positive messages.
Education is key and applied knowledge is power! Let’s get educated when it comes to finances and how to make money!
Domonique Hargrove B.A., M.S. Founder of “Slight Edge Performance Program”
EMAIL: d.hmarketing@yahoo.com
TWITTER: @dhdiamond2012
Check out my “Health Science” Blog at: https://dhdiamond.wordpress.
http://www.facebook.com/
(Go to FB “LIKE” our Team page and get Knowledge to Help you Perform at your Highest Level and Achieve your Full Potential!)
Learn how to get faster in 15 minutes. Try Free Trial and it works Guaranteed Results Below:
http://www.
( Visit my personal Website to get Exclusive Access to Buy Nutrilite Double X and other NSF Certified for Sport Supplements that Pros like AC Milan, Detroit Redwings, Kurt Warner, Kara Goucher and Asafa Powell use to Enhance Athletic Performance.)