4 Ways for athletes to become more financially literate
We always hear the phrase, make more than you spend, but a huge percentage of people spend more than they make each month. According to Bloomberg as of August 2022, “An estimated 34 million US consumers, or roughly 13%, spent more than they earned in the past six months, underscoring how Americans are having difficulty managing their finances amid decades-high inflation.”
An another problem many are dealing with is a lack of savings. The survey indicated 15.4% of respondents in the survey had no savings at all and 22.2% having less than $1,000 saved.
But not you, because you stumbled upon this article and I am giving you 4 ways to become more financially literate. So let’s get into it!
Understand budgeting and start a monthly budget. When it comes to being financially literate, the most important thing to do is understand where your money is actually going. I have created a simple budget in excel. If you want a copy then signup for my newsletter and DM me on Instagram that you subscribed.
Learn how to start saving money. Any amount of money is a great way to start saving. Something as low as $5 a month is better than $0. Sometimes saving and investing is overwhelming, but Vivian Tu of Your Rich BFF breaks everything down on her TikTok, Instagram, & weekly newsletter. She teaches you everything about investing, saving money, how to get deals at various retailers, and everything in between while breaking it down in short videos.
Think about getting a High Yield Savings account. Allowing your money to work for you without having to do anything is one way to make more money with the same amount of work. Think about getting a high yield savings account which can yield anywhere from 1%-5% while a traditional savings account will only give you .22% interest. That means when you put money into a high yield savings account your money will be making the interest rate. To drive home the point, if you have your money parked into a high yield savings account with a 3.3% interest rate, you could make around $825 in a year from interest. Check out this video on HYSAs and why they are important to learn.
Learn about credit cards. The more you know the less likely you will jump into a terrible credit card situation. Just because you are researching doesn’t mean you have to get a credit card now. Start following credible accounts who discuss credit card, read articles from reputable sources, and talk to your friends who have credit cards and learn what they like and don’t like about their cards.
While there are many things you can do to become more financially literate, the good news is that you don’t have to do everything at once. Educate yourself and then take the steps that are right for you in the comfortable timeframe for your lifestyle. Be sure to subscribe to my newsletter and follow me on social media so you never miss out on sports business tips!
DISCLAIMER: I am not a licensed financial advisor. All of the information found on this site is for educational purposes only and should not be taken as financial advice.