In what seems like a big win for NCAA athletes, the NCAA announced that it will allow them to profit from their name, image, and likeness in a major shift for the organization. It started in September when California became the first state to pass a law that would allow college athletes to get paid for endorsement deals and hire sports agents. Now The NCAA’s top governing board voted has unanimously voted to allow college athletes to be compensated. Student-athletes must be treated similarly to non-athlete students, must not be treated like employees of their respective universities, and there should be a “clear distinction between college and professional opportunities,” the NCAA said.
This is a big win because Athletes bring in billions of dollars for their schools and coaches get paid millions but Athletes and their families stay broke. So how will this change affect athletes and their wealth? Below are 3 ways athletes should manage their money in order to not go broke:
Set Up Direct Deposits and Automatic Transfers
Making sure that your money gets directly deposited into your account is a smart idea and will help you organize your funds. Instead of relying on you or a trusted advisor to set up things for you the right way make sure that you also set up automatic transfers every time a direct deposit hits. One transfer should be for savings and the other should be for investing, what’s left ofter should cover bills and discretionary funds. This strategy will ensure that you never go broke because you are paying yourself first
Let Your Assets Pay for Things
I know as an athlete you are going to be tempted to buy things and enjoy the fruits of your labor but it is imperative that you get out of the habit of working for money and instead allow your money to work for you. Instead of spending the money you earn on things, use that money to buy income-producing assets like real estate that you rent out and allow that asset to pay for the things that you want. This way as you continue to make money that money will never run out and you don’t ever have to find yourself working at Walmart after your career (Not that there’s any wrong with working at Walmart)
Lastly, make sure you are putting money aside for education. Even after your collegiate days are over you want to make sure that you are also on the leading edge of what is happening in the business world. Stay educated on the do’s and don’ts of business and understand what evolutions are happening so that you can continue to grow and build your wealth