The foundation of financial success for pro athletes

What does an athlete need in order to succeed financially? Here’s the starting point: a proper mindset about money and a sound structure in place that provides a framework for managing their wealth. Mindset + Structure. Let’s dig in.

One of the things I tell athletes all the time is to “pay your future self first.” It’s a simple concept that can be executed with the proper financial structure in place. But the psychology of money makes this very hard for individuals to accomplish on their own, whether they’re athletes or not.

What if I told you there was a way to view your current income differently and to preserve more of it for the future while still enjoying a very good standard of living right now? The idea is that instead of your team paying you (for example, your checking account at the bank) they pay your future (your savings and investment vehicles). From those long-term accounts, you pay yourself a monthly wage into your spending accounts. The amount you pay yourself is a set amount that is defined by working with an advisor to develop a Spending Plan. I do this with my clients and review it annually.

On that note, let’s talk about spending. A Spending Plan is not meant to be punitive. It’s not meant to be “No-No-No.” But it is meant to provide a structure to work within and a framework to ensure success. Everyone wants to talk about investments. (So do I, I love managing them.) But the truth is, the #1 most powerful thing an athlete (or anyone) can do to grow their wealth is to spend less of it now. Depending on your income level and overall financial situation, you might need a plan that allows for $3,000 a month in spending. Or maybe it’s appropriate for you to spend $50,000 a month. It all depends on where you are financially. But let’s be clear: even if you are in the very small group of people that can appropriately spend $50,000/month, you can still benefit from placing a framework around that spending.

This may sound too simple to be effective. It is not. The step of structurally putting your future in front of your current is powerful.

Once we have accomplished this foundational mindset and structure, now we can dig in to the fun stuff: stocks, bonds, real estate, private equity, private credit, and the list goes on… There’s much more to discuss on those topics, and I am happy to do that with you. But for now, focus on this: to create and preserve wealth, you must re-frame how you think about your current income.

Take the next step – moving from a “saver” to an “investor”