- 78% of NFL players are bankrupt or dealing with deep financial stress within two years of retirement
- Athletes will likely earn 70-90% of their lifetime earnings before age 35
- The average NFL career lasts 3.3 years
Don't those statistics just put you in a great mood? After seeing the numbers, it's no surprise that money has been one of the biggest arguments in our household. Especially with the added stress of such a generous amount of money coming in for such a short period of time--and everyone knowing about it. Money is one of the top five areas the average couple fights about, so take some time and evaluate your financial responsibilities. I wish I could take you back to high school and provide you with a fun, Cosmopolitan-esque quiz, but this will have to do...
Financial Transparency
Deception comes in many shapes and sizes and is one of the hardest things to deal with when money is involved. Salary, spending, giving, saving, etc. should all be discussed and talked about regularly. Omitting/hiding spending is a slippery slope that can end up hurting your partner and your family's future. Make sure to sit down with each other and discuss your spending boundaries and habits.
- Have you and your spouse made and maintained a budget?
- Do you hide or omit spending from your significant other?
- Do either of you make big, financial decisions without discussing it first?
Financial Adviser
Having a relationship with your financial adviser is crucial in maintaining a healthy financial status. Monitoring your monthly statements ensures your money is being properly handled.
- Where is your money being allocated?
- Does your financial adviser have POA (Power of Attorney)?
- What are you paying your adviser each year?
Debt
Buying things we can't afford is an American tradition. Break the cycle by making smart decisions. Plan out your debt-free goals and also your expectations on how to achieve those goals.
- What's your family's collective debt?
- How much are you spending on interest for things you could pay off now?
- What's your credit score and are you monitoring and maintaining it?
Giving or Lending
This is usually the hardest financial area to compromise on within a relationship. Attempt to keep open communication with your partner on your thoughts and feelings when it comes to giving out money. Make sure you map out how you, as a couple, will handle people when they come to you for money.
- Are people taking advantage of you and your financial situation?
- Do they expect you to give/lend them money (it's never fair for someone to make you feel guilty for their own situation)?
- Are they living above their means(cable packages, dining out, phone plans, etc.)?
I realize these topics can get heated and have a lot of emotion behind them. My hope is that the discussion of finances doesn't overwhelm you but actually empower you to take control of your future.
Further Reading:
http://www.nflplayerengagement.com/financial-education/
