If you have just scored a professional sports contract, before you make any business or financial deals, or really touch the money at all, you should work with a financial planner, so you make smart decisions about your money. Most professional sports careers only last a limited number of years, so if you just got a professional contract, you are going to want to make sure that you use your money correctly.
1. Get an Insurance Policy
When you begin a career as a professional athlete, you are going to want to make sure that you insure your body. You are going to want to obtain a life and liability insurance policy that will pay you if you injure your knee, for example. You want to make sure that protect your body so that you still get money if you are injured or hurt.
Make sure that you have the right insurance to protect your business, which is yourself.
2. Set A Budget
The next thing that you need to do is set a budget. You want to figure out how much money you can spend each year with your contract. Once you figure out how much money you want to spend each year, you should create a more detailed budget.
How much money are you going to spend on housing? How much money are you going to spend on vehicles? How much money are you going to spend on paying people to help you out?
The more detailed your budget is, the better you will be at sticking to it.
3. Set an Investment Plan
Your contract may seem like a lot of money upfront. However, by the time that you pay taxes, pay your sports agent, and pay the other people that are assisting you with your professional career, you are going to end up with half that amount of money. Then, you need to figure out how that money is not only going to get you through the year but through your life.
Just like other young people are encouraged to save for their retirement, you need to as well. When you are bringing in so much money though, your retirement plan is going to be about investing.
Work together with a financial planner to create an investment plan that contains a good mix of both high and low-risk investments so that you can have money long after your playing days are over.
Before you start spending the money from your professional contract, you are going to want to hire a financial planning for professional athletes service, set a detailed budget, and make an investment plan that includes both low and high-risk investments.