Ever thought of what happens to most professional athletes after they hang up their boots? Most of us tend to think that they continue leading lavish lives, and some actually do.
Unfortunately, a majority of them end up penniless, with numerous studies showing that 60% of professional NBA players go broke within a decade of retirement.
Been there, done that
If there’s a guy who’s very much in tune with this reality, it has got to be Shaquille O’Neal. Being one of the game’s greats, he’s seen it and done it all.
At 47 years old and having had a long and illustrious career, he knows a thing or two about both blowing through cash recklessly and saving it up for smart investments.
When a young Shaquille was selling like hot cake, he once spent $1 million in one hour! His older self must look back at his 20-year-old version and shake his head in disappointment. Luckily, he got his head straight and he now spends wisely, and invests a huge chunk of his money.
Given his life story, this year’s NBA Picks have no choice but to listen to some words of advice from the b. ball legend. Some sixty names were drafted this year, and they guys are in rigorous training for the new season.
Naturally, they are all expected to make mad money, with first pick Williamson expected to earn at least $45 million four seasons in.
With his fellow first rounders, they are all expected to earn $1 million each this season. Second rounders who make the NBA roaster will hope to make $800,000, with all of this being a little overwhelming for players who didn’t make a cent playing for their respective colleges.
Naturally, they will be tempted into extravagance, and this is where Shaquille comes in.
Admitting that the temptation to spend all of this money is very much a thing, the legend advises that after receiving their paychecks, they should immediately save up half of it. That half should either be invested or put away never to be touched.
Half of the remaining half should also all be saved up, according to Shaq. He says that smart people save up 75% of their paychecks, keeping it as their retirement package. They then use the remaining 25% for luxuries to the tune of houses, planes, cares, you name it.
What rookies never account for is taxes. They never realize that a huge chunk of their money goes to the government since they live under the illusion that they have so much.
Without a smart saving plane, they find themselves falling from grace to grace. And that has always been a hard fall!
Don’t we all know that it’s always easier to spend money that to earn it? Once you’ve wasted a fortune, it may be quite difficult to get it all back, and before you know it, you are well beyond your prime years. If these rookies want a good life for themselves, they should listen to Shaq!