Everybody thinks that being a pro athlete is the greatest job on Earth. Not only that you get an opportunity to play your favorite sports and get millions and millions of admirers, but you also get paid lots of earnings. But what many people don’t realize is that athletes also face a lot of financial challenges.
Even with free training, big allowances, and lucrative endorsement, many athletes suffer financial problems as well. Just like everybody else, athletes still have living expenses to pay. They have to pay on groceries, utility bills, credit card bills, school, and many other normal expenses. And since they are required to maintain their body and health, most of them need to pay more for massage therapies, gyms, personal trainer, and sports equipment. And not only that. Just like everyone else, athletes are also required by law to pay taxes. But it’s not just a tax – it’s a huge tax.
Pro athletes are not like the average tax payers. If you hate tax, then athletes hate them more. While many of us are busy filing our tax returns and claiming tax refund, professional athletes are busy paying and paying and paying their taxes. The tax preparation process of average tax payers is relatively simple. Depending on the place where the average tax payer lives or work, he or she is just required mostly to file federal and state income tax returns. But athletes, on the other hand, need to pay taxes on every city, state, or country they visit. For instance, if an athlete travels to 10 different cities throughout a single season to practice or play, he or she will be required to file tax returns 10 times, or more depending on the country’s rules.
And when the games are over, many of them will return home to their normal lives without those huge earnings and endorsement.
Tips If You Want To Be an Athlete
Of course, knowing these things shouldn’t discourage you to achieving your dream of becoming a pro. There are still a lot of great things about being an athlete. As mentioned, you’re able to play the sports you love, become part of your dream team, travel to many different places, get known by many people, and get paid high earnings. But of course, it’s still important to be aware about the many challenges that come by being a pro athlete. This will help you avoid encountering any financial or career problem in the future.
Keep in mind that even if you’re getting huge endorsements and lucrative salary, it’s still vital to save and invest for your future. Don’t just spend, spend, and spend – buying things that you don’t actually need. No matter how rich you are, if you don’t have financial discipline, you can lose everything. According to a 2009 report released by Sports Illustrated, at least 78% of former NFL have gone bankrupt or under financial stress, and an estimated 60% of former NBA players are broke within five years of ending their playing careers.
So as early as possible, get started to save and invest. If you have the budget, you would also want to seek professional advice so you will be better guided on how to manage your funds properly.