Money lessons from professional athletes worth millions
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Loading...There are plenty of examples of stars making millions and squandering it all: Mike Tyson, Vin Baker and numerous NFL players as well.
So it’s far from guaranteed that rich athletes stay rich, which means there’s a lot to learn from how financially savvy pros like these 5 standouts handle their money.
Steph Curry
This two-time NBA MVP is only the fifth-highest paid Golden State player with $11 million annual salary but he has made some key financial moves. In 2015, his Under Armor deal was extended to 2024 and includes an equity stake in the company—which was probably his smartest shot yet.
The lesson: Play the long game. Pay your dues today to plump up your bank account tomorrow.
LeBron James
James has always been a different kind of athlete. In his early 20s, he befriended Warren Buffett, hitting the genius investor up for advice. And in 2006, he set up an investment company named LRMR Marketing, and began structuring clever deals that included both cash and equity. For example, his equity stake scored him at least $30 million when Apple acquired Beats headphones.
The lesson: It’s not your regular paycheck or side gig that’s likely to make you rich—but your investments and other passive income streams you create for yourself.
Ronda Rousey
Becoming the first U.S. woman to earn an Olympic medal in judo in 2008 was only the first barrier Ronda Rousey crashed through in dramatic fashion. As she continued her career in mixed-martial arts, Rousey eventually became a wildly popular UFC women’s champion and claimed to be UFC’s highest-paid athlete—male or female.
Her famous matchup with Holly Holm might have been one of 2015’s most anticipated fights, and she stood to earn $10 million from the bout. (However, she lost in an upset).
The lesson: Experts say splurging (wisely) when you get a windfall or reach a milestone can actually help keep you motivated to stick to your big money goals. Just don’t go overboard.
Kawhi Leonard
The San Antonio Spurs’ Kawhi Leonard has earned just about every accolade a young player could: He’s been the NBA Finals MVP, defensive player of the year (twice) and an All-Star. But despite his accomplishments—and a $94 million contract—Leonard still drives a 20-year-old car which he owns since high school. When someone asks him why doesn't he get a new one, he simple replies that "It runs" and "Does the job".
The lesson: As super-savers across America attest, two effective ways to live well below your means without feeling deprived are to scout out discounts on things you love, and to keep your car long after it’s paid off.
Danica Patrick
Danica Patrick is auto racing’s most famous female driver, and she’s among the sport’s top earners, too. She made nearly $8 million on the track in 2015 and another $6 million through a variety of endorsement deals. Even her massive earnings and busy schedule, she’s careful to incorporate expert financial advice and assistance from people she trusts.
The lesson: Know when you need help managing your money—and rely on the right people to help you reach your financial goals. And even if you hire someone to manage your money, make sure you know where your money is going—and why.
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