David Osborne Pebble Beach recently discussed common financial mistakes made by athletes.
Managing finances can be difficult no matter how much money you have. David Osborne Pebble Beach is a financial expert with a focus on athletes and celebrities, and he recently discussed the common financial mistakes professional athletes make.
“The financial mistakes made by professional athletes and celebrities are ones from which we can all learn,” David Osborne Pebble Beach said. “Managing large amounts of money can be difficult, and we see many professional athletes making the same mistakes time and time again.”
David Osborne Pebble Beach explained that much of this difficulty comes from the amount of money professional athletes can make in a short amount of time. Many times, professional athletes make an average person’s salary in just a few days. Despite this advantage, it’s not uncommon for professional athletes to fall deeper and deeper into debt.
“Many pro athletes are under the impression that their money will last a lifetime,” David Osborne Pebble Beach said. “But those with very luxurious spending habits can rarely make it last that long.”
Osborne explained that the careers of pro athletes are often short-lived, and the money they make following the career is a fraction of what they made while playing. This can lead to difficulties for those who are not well versed in budgeting for the future. Creating a comprehensive financial plan and working with a qualified financial planner can help an athlete budget their earnings over time.
“Pro athletes often live in the now,” David Osborne said. “They know their career will end someday, but they’re not preparing for what they will do when it does.”
Osborne suggested that pro athletes always prepare for the future, whether through networking with others in the industry or advancing other aspects of their career, such as coaching or announcing. The finance expert added that this career doesn’t even have to involve sports at all. Athletes may find themselves interested in opening restaurants, entering real estate, or many other ventures. Using the money they have now to put these plans in motion can set them up financially for the future.
Osborne finished by explaining that it’s especially important for athletes to consider what will happen if they become injured or experience another downfall that cuts the career short. One in five athletes are injured in their sports each year, and that injury can be career-changing for many.
“A quality financial advisor can help athletes choose which financial outlets may be best for them. They may want to consider a term life insurance policy or even disability insurance,” David Osborne Pebble Beach said. “Saving as much money as possible now and working with a financial advisor can be the difference between a comfortable retirement or constant battles with debt.”