Financial Goals Every Athlete Should Set for the New Year

As the new year unfolds, it brings so many opportunities for growth and self-improvement. For athletes, this is an ideal time to reflect on your financial habits and set achievable goals for the coming months. I remember being in school and at many times, couldn’t wait to graduate so that I could start making money and growing my resume (this was before the days of NIL). With NIL earning options available for all student-athlete at every level, there’s no need to wait! You can start earning money from your name, image and likeness. You can also work work part time or create your own business.

No matter if you’re a current athlete, former athlete, have a few dollars saved, or have a ton of money set aside, it is never to late to set goals and educate yourself to help you reach the next level of financial success. Whether you’re a freshman navigating the complexities of financial independence, a senior preparing to enter the workforce, or a former athlete who’s been in the workforce for a few years, here are some practical financial goals to consider in the new year.

Create a Budget and Stick to It. One of the most effective ways to manage your finances is by creating a budget. Outline your sources of income and categorize your expenses. Be realistic about your spending habits and identify areas where you can cut back. There are several budgeting apps available that make this process seamless, helping you track your expenses and stay within your financial limits.

Build an Emergency Fund.  Life is unpredictable, and having an emergency fund can provide a safety net when unexpected expenses arise. If you’re out of school, working full time and responsible for covering all of your personal expenses, you’ll want to have your own stash of cash on hand for safe measure. Aim to set aside a small portion of your income each month until you have built a fund that covers at least three to six months’ worth of living expenses. This can take time, so don’t get discouraged! There were months when I could only contribute $25 or $50 to my emergency fund, but over time those small contributions will help you so much. This fund can be a financial lifesaver during challenging times, offering peace of mind and financial security.

Establish Good Credit Habits.  Understanding and building your credit score is crucial for future financial endeavors, such as renting an apartment or applying for a loan. Obtain a credit card if you don’t have one already, and use it responsibly. Make timely payments, keep your credit utilization low, and monitor your credit report regularly.

I didn’t realize how quickly a good credit score can turn bad until I was out of school. I had a few work friends who used credit cards and then made late payments, or didn’t pay them back at all. The result? Really bad credit scores which prevented them from renting certain apartments, buying certain cars, or even qualifying for premium credit cards years after graduation. Building good credit habits now will pave the way for a stronger financial future.

Explore Part-Time Jobs or Side Hustle Opportunities. Balancing academics, athletics and work can be super challenging, but if you’re able to score NIL opportunities, this can be a really valuable experience and a great way to earn money before you graduate.  If you already have an online audience, reach out to local business or franchises to explore partnerships that can help you earn cash or in-kind payments.

The same goes for semi-pro, or former athletes currently working: creating a side-hustle or taking on an additional part-time job can help supplement your income. Doing this can help fast track your savings account, grow your emergency fund, or help you improve overall financial independence.

Save for Short-Term and Long-Term Goals. Identify your short-term and long-term financial goals. Whether it’s saving for a new laptop or planning for post-graduation expenses, allocate a portion of your income towards these goals. Consider opening a savings account specifically for these objectives, making it easier to track your progress.

Minimize Student Loan Debt.  If you have student loans, create a repayment plan that aligns with your budget. Explore options for loan forgiveness or income-driven repayment plans. Be proactive in understanding your loan terms and consider making extra payments when possible to reduce the overall interest paid. Remember, the quicker you can pay of loans, the faster you’ll be able to keep your hard-earned money.

Invest in Personal Development. Investing in yourself can have long-term financial benefits. Consider allocating funds for workshops, conferences, or courses that enhance your skills and knowledge in your chosen field. Networking opportunities and skill development can open doors to better-paying job prospects in the future. If you don’t have the time or finances to invest into personal development right now, there are all sorts of classes and videos you can watch online.

Seek Financial Advice. If navigating the financial landscape seems overwhelming, seek advice from financial experts or utilize resources provided by your school. Many institutions offer financial literacy programs and counseling services to help students make informed decisions about their finances. If time or money is limited, you can do a majority of the work on your own. You can tap into your college or universities services as an alum and attend programs that help you learn about different financial topics. You can also sign up for free webinars or courses that are offered throughout the year.

The new year is a perfect time for current and former athletes to assess their financial standing and set achievable goals. By creating a budget, building an emergency fund, establishing good credit habits, exploring earning opportunities, saving strategically, managing debt and investing in personal development, you can pave the way for a more secure and prosperous financial future. It’s also important to not to overwhelm yourself with all of these topics. *My advice: focus on two-three goals a month. Continue to educate yourself and work towards reaching each goal over the course of the year. Slow and steady wins the race, no matter what your financial situation is and no matter what your starting point is.