Recently retired, Robert Gronkowski earned more than $50 million during his career as a professional football player but never spent a dime of it.
How is that possible?
He lived completely off his endorsements, a decision he made at the beginning of his career. His reasoning was simple: He wanted to have more choices in life later on.
He kept his spending in check by living a lifestyle within his means — and now, only 29 years old, he’s in a better place financially than many of his teammates will ever be in.
We can all take a lesson from Gronk when it comes to money: Save for freedom.
Typically, when I’m not discussing sales or topics impacting MSPs, I get a bunch of eyerolls, but it’s okay. Just like Gronk, I’ve got choices, so I’d like to take this opportunity to share some awesome money management tips I’ve learned throughout my career.
A money management tip from my father
You’ve probably heard this from me before, but I’m going to say it again: Always pay yourself first, which means you should live within your means and save as much as possible.
This is something my father taught me many years ago. It’s advice I continue to pass on to my family, friends and TruMethods members.
It’s easy to spend your after-tax dollars on big houses, cool cars, expensive dinners and grand vacations. It’s a lot more difficult to refrain from unnecessary spending.
I’m not saying you shouldn’t enjoy life. You should. Why else would you be working so hard?
Just remember this: It’s possible to be thoughtful with how you spend your money.
Figure out your long-term financial plan
Determine how much you’d like to be worth in 10 years. Then, work backwards to figure out what you must do to hit that number.
What does your career path have to look like? What about your buying decisions?
Do you have budgets for personal finances?
Create budgets for your personal finances.
If you don’t, you’re going to run into issues down the road.
Determine your monthly income, how much you’re saving per month, retirement savings and more.
Also consider unexpected expenses.
What if your car breaks down? Do you have money set aside to repair broken parts?
Some other financial tips to consider are the following:
- Financially smart people invest in appreciating assets.
- Pay off your credit bill every month.
- Keep monthly expenses relatively low compared to your income.
- Be smart about debt.
If you can’t do all the financial planning yourself, find help. There are plenty of financial planners in the market and online tools available.
Not everybody Is savvy with their money, and that’s okay.
What matters is you pay close attention to how to manage your money effectively. It’s easy to stray from the advice I provided above. Do your best to stay on course by implementing much of what you learned.