Behind the Scenes with Athletes: Money Management It's not that athletes aren't smart. It's that they aren't smart... With money.

Imagine you are a multi-millionaire athlete. How would you spend your money? Many athletes in the modern day sports era are making millions to billions of dollars. You may think that athletes have lots of opportunity for a good life. But, surprisingly many go broke very soon. Although many will go broke, some spend their money very wisely.

Wiser Ways With a Wad of Money

One athlete who spent his money wisely was Michael Jordan. Jordan was a six time NBA champion winning three consecutive championships. Michael Jordan didn’t necessarily spend his money in the smartest ways, but he spent it so he will have an amazing retirement. Michael Jordan also known as “MJ” has a great retirement plan as well as the fact that he’s still making billions of dollars from his NBA franchise the “Charlotte Hornets.” MJ has some of the coolest things ever. Imagine if you had a custom private jet, three, thirty million dollar houses, a private golf course, custom golf carts, and a one hundred fifty million dollar yacht. Plus another one billion dollars. How would your life be?

Blown-off Leads to Bankruptcy

Now imagine you have a twenty million dollar grill, a gold lamborghini, fifty million dollars worth of gold chains, you don’t pay taxes, and you’re broke and in debt. Now how would your life be? Believe it or not. This is how retirement goes for most athletes. Allen Iverson, an iconic point guard for the Philadelphia 76ers, is a great example of someone who blew all their money on useless stuff. Although lots of athletes spend their own money poorly, sometimes money managers are at fault. One example of someone who’s money manager blew all of their money was Scottie Pippen, teammate of Michael Jordan and carrier of six NBA title rings. Scottie Pippen invested more than twenty million dollars in a money manager who ended up stealing lots of money from Pippen and committed bank fraud. He will eventually be arrested. The money manager may be wrong in this situation. Although, Pippen should have searched for better money managers.

Ways to manage your money

To prevent becoming bankrupt, there are many ways to manage your money. It’s not only athletes who have to manage money, it’s you guys too. So I’m going to teach you. One good way to to manage your money is to hire a good trustworthy money manager. Not any money manager will work, they must be trustworthy. As I said before, Scottie Pippen made the mistake of spending a lot of money on a not so trustworthy money manager. Another way to manage your money is to limit yourself on usage. What I mean by this is to limit the amount of money you use for a certain amount of time. The last way to manage your money is to rethink buying certain items. Meaning, give yourself a little test on usefulness of the time. Here are five questions you can ask yourself:

Do I know anybody who has one? If so, ask about it.

Honda vs Lamborghini. choose the more realistic one

Does this seem like something I will use in ten plus years?

Which one will last longer?

How expensive is it? Can I find it for cheaper?

$2 million big house vs $1 million big house

Will this make my life easier?

Will a third house or a private jet make my life easier

Can this benefit my family and my friends also?

Should I buy this third house for myself or my friends or family?

These questions should be helpful to you especially if money management isn’t your strength. So if you’re trying to learn how to manage money either hire a professional money manager, “limit yourself,” or lastly ask the five question money management quiz.

How Does this Help You?

You may be asking, “Why do I care how athletes manage their money?” Well, do you have a favorite athlete? Do you want to be like him or her when you grow up? Well if both of those answers are yes, then they’re pretty much a role model to you. If they’re a role model to you, you may look up to them and/or want to be like them, but maybe they don’t have the best money management skills. So I’m helping you be like them with good money management skills. Even if you don’t have a favorite athlete, or an athlete role model this will help you as well. This can help people like this because it shows examples of good and bad money management, as well as ways to manage money better. Rather than skimming through this whole article, go back and read it thoroughly before you go into the real world and struggle with this skill like many athletes did and still do. It’s not that hard to manage money. At least to manage money well enough to not go bankrupt. Magic johnson said, “However, there have been a lot of disheartening stories about athletes and their money in the news lately. Too many of these stories deal with athletes who earned hundreds of thousands, if not millions, of dollars on the playing field but ended up destitute within a few years of their retirement.” Like Magic johnson said, too many are without money within a few years. You can be the new generation.The generation who can manage money. So let’s be the new generation.

Credits:

Created with images by Janitors - "Honda Accord sedan 4D 2006 054" • jingoba - "lamborghini brno racing car" • oatsy40 - "House" • Morgan Mafu - "Yeezy.png" • WikimediaImages - "building architecture construction" • lavocado@sbcglobal.net - "The Biggest House in Lakewood California"

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