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What Can the Nfl Tell Us About Money

18 July, 2013



I point out the obvious frequently, but today I want to tackle something different.

Staying out of debt, saving money, investing for retirement…..all very important, but aren’t they obvious?

Interestingly, “Millennial’s” understand the need to save money. Perhaps they have learned from the previous generations. Perhaps it is fear caused by the market crash of 2007.

There seems to be a popular movement towards saving as much money as possible until college is finished, which will provide a lifestyle of wealth.

Let me stop right there and poke some holes in this way of thinking, starting with some insight into the life of an NFL player.

According to a recent article in Sports Illustrated, 78% of NFL players are bankrupt or broke within 2 years after there football careers come to an end. That is 8 out of 10 players. The average salary for a player in the NFL is $400,000 per yer!

But let’s be realistic. The NFL stands for Not For Long. The average career is 3.7 years, which tells us that high income levels come and go.

I have often heard the excuse of “I don’t make enough money to be wealthy”. These guys made $400k per year and have nothing to show for it. I know, I know, it lasted for less than 4 years.

Check out the math though. Let’s pretend that after signing the big contract, the average player didn’t immediately go buy a new car and house, not just for themselves, but for mom too. And of course if you are making big bucks you have to have a new wardrobe to look the part. And furniture. And the latest technology.
Get the picture?
Suppose instead that they spent $100,000 per year and invested the remaining $300,000 for 3.7 years.
The stock market has averaged 11.85% growth and with that in mind, here is the math that will blow your mind.

Ready?

Year 1
$300k plus 11.85% = $337,545.80

Year 2
Last years $337.545.80 + $300k + 11.85% = $717,336.36

Year 3
Last years $717,336.36 + $300k plus 11.85% = $1,144,658

Without even factoring in the additional .7 years, that is a little more than a million dollars.

So the dream ends soon and after three years the NFL is over. No worries though! With no additional money being added to the nest egg of over $1 million, $100,000 (the same amount of money being lived on for the past three years) can be withdrawn every year while the nest egg continues to grow because it is still gaining 11.85% in interest. (which is more in interest than the $100k withdrawal per year!)

What does this have to do with you?

No matter what your income level, you have to live on less than you make. You have to stay out of debt and you have to build wealth by investing.

Whether you make $20,000 or $400,000 a year, make the most of it. If you can make money, you can retire with dignity.

It won’t be handed to you though. You have to make it happen.

Are you making it happen? Do you know where to start?

If the answer is no, don’t waste another day. You don’t have to seek my help, but you do have to take a step.

You can read books and learn for yourself (Comment me for some good reads) or you can seek the help of a knowledgeable professional.

As an Independent Dave Ramsey Financial Coach, I can equip you with the knowledge to change your financial future. I don’t sell gimmicks or products. What I will do, is empower you to win in your financial situation and bring hope to your future.

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About

timparady

My name is Tim Parady and I am 36 years old. I was born in Connecticut, raised in Virginia, had a brief layover in Kansas which led me to Texas where I met my wife and best friend. We just celebrated 145years of marriage.
I have the best job in the world, which is to improve peoples lives. I teach people how to win in all areas of there money, which affects all areas of their lives.
78% of Americans live paycheck to paycheck, with no money in the bank and little knowledge of how to invest for their retirement. You can have a different future. You can win with money and I can show you how.
I am an independent Dave Ramsey Financial Coach,and Insurance Agent at Alkali Insurance and I am here to serve you. My goal is to provide knowledge and tools to change your life. To schedule an appointment to address your financial needs and goals, email me at tim_parady@yahoo.com



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