Having Leverage in Your Life Is a Form of Financial Freedom – Business Insider

While Amobi Okugo was a professional midfielder and defender for the Austin Bold Football Club soccer team, he saw the ESPN 30 for 30 documentary "Broke" about how quickly and easily professional athletes can lose all their money. He decided right there that he would take ownership of his own finances and encourage other athletes to do the same, which led to the creation of A Frugal Athlete.

Now, he helps other athletes think about the future beyond their playing career.

"Financial independence means leverage, in my eyes," said Okugo. "Whether it's leverage of time, freedom, independence, or control over what you want to do." The influx of money from an athlete's short career, he explains, is leverage you can use to build a better future for yourself, you family, and to put toward any passion you may have that will guide your future career.

He added that athletes in particular "know all about leverage."

"If you have leverage, you're able to ask for different things within your contract, you're able to make decisions from a less stressful situation," Okugo said. "You don't feel like you have to sign the first contract that comes your way."

Okugo said a common misconception about professional athletes is that they are all as rich as celebrity players like LeBron James and Kevin Durant."LeBron's embarking on his twentieth year as a NBA superstar," he said. "The average athlete plays anywhere from three to five years, depending on the sport."

He then went on to explain that even if you're in the NFL and making $600,000 in salary, that's $1.8 million over a three-year career which can disappear quickly if you aren't careful.

"I mean it's good money, but you have to stretch that out for the rest of your life," Okugo said. He added for people who expect these earnings to support themselves for several decades, making the money last a lifetime isn't feasible.

The first step for athletes to take ownership over their finances and become truly financially free, he said, is to accept that the money won't last forever and that you have to use it to your advantage while you still can. "You have to adjust your spending habits," said Okugo. "And a lot of times people struggle with that."

He said that when it comes to become financially independent, athletes should "maximize now," in terms of investing and making moves to help that money grow and become a steady stream of future income that provides leverage in life beyond sports.

As he says, "You can only be a pro for so long."

A.J. Jordan

Personal Finance Reporter

Read the original post:

Having Leverage in Your Life Is a Form of Financial Freedom - Business Insider