Professional baseball players face many of the same financial hurdles that we all do such as curbing our spending, increasing our savings, and financially preparing for the future. However, they face the unique challenge of earning a high-income for a short period of time early on in their lives, making long-term financial planning seem less pertinent. This unusual earning structure, combined with limited experience handling money, is most often why professional athletes are notorious for blowing through a lifetime of income with a lot of life left to live. With so much focus on perfecting their athletic abilities, financial planning often falls by the wayside.
Here’s a closer look at some of the top financial hazards professional baseball players encounter in their lifetime and how they can handle them for a healthy financial future long after they’ve left the field.
Overestimating How Long Their Money Will Last
In traditional careers, individuals typically work to increase their income over time, whether that is by moving up the corporate ladder or improving the client base of their own business. As such, the majority of individuals will end their career at their highest earning potential, giving them ample time to learn how to manage their money.
The opposite is true of professional baseball players. These athletes certainly earn a great deal of income, but it is earned very quickly and at a very young age. In these cases, as is often the case with lottery winners and inheritors of large lump sums, this sudden influx of money can provide a false sense of security, promoting both overspending in the near-term and underpreparing for the long-term.