The Boot Room - 7 tips for a footballers financial future

As a former semi-professional footballer, I can relate to the challenges faced by footballers both on and off the pitch. The intense training, the weekly pressure to perform, the tricky balance between football and family/social life. Of course, at my level, it was a 3 times a week pursuit with some extra beer money for the weekend as a reward for our efforts.

The life of a football professional - now that’s a different story. You have earned the right to do what you love, day in, day out. Lest we forget the hard work put in – we may well see the 90 minutes on a Saturday, but it’s the other 6 days a week where the real battle has been won. Those countless hours honing your technique, repeating drills in pursuit of perfection, exhausting all possible energy reserves as you push your body in search of that extra edge.

It’s intense just thinking about it, so is it any wonder many football professionals can fail to make the most of their time in the spotlight by giving appropriate focus towards planning for their financial life after the lights go down?

“Research from the Professional Players Federation found that just over half of retired sportspeople reported financial difficulties in the five years after they stopped playing.”

Source: New Model Adviser March 2018 – Sports stars crying out for professional advice

It doesn’t have to be this way.

Here are seven key tips on how you can set up your financial future by getting the basics right and avoid these financial difficulties that are all too common. With a spot of extra time on your hands, now is the time to give your money the attention it deserves.

Think about what you want your future to look like

 Is this a boom and bust life, or would you rather be able to sustain a comfortable and enjoyable life now and in your future? To be able to provide for you and your family and never have a need or want that can’t be realistically filled?

Let’s face it, if you reach 35 years old in the game, you’ve had a good career. So, what will you do after that first retirement, how will you fund the next 65 years of your life? Will you coach football, land a job on sky sports, start a new business or perhaps commence a completely different career.

By thinking deeply about what is important to you, you can get ahead and start planning for the life you want. Sit down with your partner, your family and give it the time it deserves. Your future financial self will be grateful you did.

Spend less than you earn

It seems simple, but you’d be surprised how many get this wrong as they attempt to ‘keep up with the Jones’ or the boys in the changing room. Cars, houses, watches all seem popular (to name a few) but It’s all about balance - you can enjoy today and plan for tomorrow by keeping your spending to manageable levels. Check-in each month and review your income and spending – Use Monzo, Starling or Curve apps to give you clear insights into your spending plan and keep it under control.

If you spend more than you earn, you are spending too much. No judgement here (aside from a yellow card!), we’ve all been there, but now is the time to press reset.

Save regularly and often

Automate your savings by paying your future self first and build this up over time. This is the golden ticket that’s available to you, particularly during the peak earning period of your footballing career. Make it as easy as possible by setting up an automatic payment into your separate savings/investment account and maintain that disciplined approach.

For example, you decide to put aside £1,000 per month for your 15-year career in the game. That’s £180,000 without even considering the potential growth of these funds. If we invested that in the stock market (which has an average real return 6% pa) you could have a potential pot of £290,000.

If we left that invested to grow and compound over time, that could reach a potential £1.2 million at age 60. That’s how impactful starting early can be on your financial future, just by making the right financial decisions early.

If your earnings go up, your savings should move up with it. Performance fees/ bonuses can be enjoyed now, with a portion chipped off to get working for your future. Good financial discipline which is more powerful the earlier you get going and start building your wealth.

You are not a charity

Yes, you are a football professional. Yes, you may well have a financially rewarding career. This does not mean you have to pay for friend’s drinks, dinner, and entertainment every time you go out (or virtual meals/drinks!). You are not a charity and your real friends know and recognise this fact. It’s nice to be charitable, however, the people you want in your life do not expect you to pick up the cheque time and time again. It’s normal to split the bill and for people to pay their way – feel guilt-free about this, otherwise you’ll be the one at their door when the pot runs dry.

There are no guarantees in life

Your professional status comes with a degree of fame and recognition – it could be local, at club level, or perhaps countrywide/international recognition. That generates people who want to attract your attention with ‘exciting propositions’ to buy/invest into.

Your mates/ the man down the pub/ boot room chat about some obscure investment they’ve heard ‘guarantees returns’, are not your financial friends. Are they an expert who knows what they’re talking about? If not proceed with caution. Doing it just because your teammates did isn’t enough. They’ll be in the same sinking boat as you without a lifebelt if things take a turn for the worst.

The media are not your financial friend

I’ve heard too many investment tips, predictions of boom and bust and exciting property or other investments in the media than I dare to recall. Taking financial advice from the media is akin to closing your eyes as you run up to ball and kicking your leg out in the slim hope you might strike and score the winner. They are there to entertain, sell adverts, generate clicks and revenue, nothing more. Avoid so-called ‘financial wisdom’ from journalists, most of whom aren’t qualified to talk about it anyway.

Have an accountability partner

Ideally, seek out a qualified financial advice professional, someone with your best interests at heart. A good trusted adviser is worth their weight in gold. Why? A good adviser will help you make the most of your money and avoid the financial mistakes we see all too often on the front pages. They can instill good sustainable money habits and help you make the most of now and tomorrow.

When you panic, move towards poor financial decisions, hear locker room chat about risky investments, struggle with financial jargon, the financial planner will be there to keep you keep right and on track for the financial future you want.

In reality, good financial planning is the get rich slow business. It’s not sexy or exciting but over the medium to long term it’ll deliver exactly what you need to live the life you want.

Keith

Managing Director

Spentwell.

Blow the whistle and let’s get the game of your life started. Get in touch at team@spentwell.co.uk and we’ll keep your finances running well into extra time.