If you were
guaranteed 1.4 million dollars would you be able to live off of 60 thousand per
year? Ryan Broyles of the Detroit Lion’s
signed a contract for 3.6 million dollars in 2012, but he and his wife decided
to prepare for their future and made the decision to live on a strict budget of
60 thousand dollars per year. I say
strict, because when you are guaranteed 1.4 million it maybe VERY hard to ONLY
live on 60 thousand dollars. Imagine if
your friends and family’s know that you have 1.4 million dollars in the bank
and they have a financial issue… It would be hard for them not to ask for help
and possibly harder for you to say “No.”
Imagine going shopping and seeing something you want to buy and having
the discipline to say “no that is not in the budget”, when you know you could
easily buy it. His discipline is so
strong that instead of buying a luxury vehicle when he signed his contract, he and
his wife are driving Mazda’s.
We all need a little help to be put on the right path and Ryan
received some great information from his financial advisor that anyone starting
a new job (professional athlete or not) could use:
- Splurge - Take some of the money to do something or buy something you really want (within your current financial means).
- Budget – Devise a financial plan that you and your family can stick to that will allow you to get out of debt (if you are in debt), save and invest.
- Invest - Make your money work for you. If you are not knowledgeable about investments seek out a professional that can help you invest in your future.
I am sharing this story about Ryan Broyles,
because it is important that we celebrate athletes when they are making great
choices, not just when they are broke or in trouble. Additionally, what I love
most about Ryan’s story is that he is paying it forward. He speaks to teens about how being
financially responsible is part of being a professional athlete. We have to start thinking not only about our
future, but also about the mindset of the children who look up to us. If our children are informed, they will
hopefully make smart decisions about their finances.
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