As an athlete, you can grind your entire life to earn an opportunity that never presents itself. You can hustle non-stop just to have it all taken away on a technicality. Or, you can get lucky and find yourself in the right place at that perfect time where preparation manifests in a showstopping performance.

For better or for worse, there are few certainties in the life of an athlete. So, if you live by the mantra “ball is life” then this is my plea to you.

As an athlete, it is absolutely imperative that you seize the moment and capitalize on the perks of playing while you’re still in the game.

One day the game will be over. One day the requests for appearances and asks for autographs will fade away. Don’t get caught flat-footed with nothing to show for your years of sacrifice.

This article breaks down five ways that athletes can play the money game smarter.

This is the blueprint I used to turn a great opportunity into a fulfilling career, a powerful network, financial security, and most importantly, a head start on the rest of my life.

5 Things Every Athlete Should Do Before They Retire

Become Debt Free

Some athletes go to college on a full ride and walk across the stage at commencement 100% debt free. Many, however, leave school with thousands of dollars in student loans hanging over their head - especially in Canada.

Whether you racked up your debt paying for tuition and books or you overextended yourself during your early years after graduation, the point remains the same.

Before you retire, repay what you owe.

As the saying goes, it’s not what you make, it’s all about what you keep. Paying down debt will reduce your monthly expenses and alleviate some pressure when your income inevitably comes back down to earth post-playing days.

a Guaranteed Return On Investment

Paying down debt can been seen as a guaranteed return on investment (ROI). Here’s an example to illustrate the point.

If you own $1,000 at a 5% simple interest rate, you will pay your lender $50 as the cost of borrowing that money. On the other hand, if you clear that $1,000 debt, you save the $50 and keep 5% more of your money in the long run.

In this case, a dollar saved is just as good as a dollar earned.

You may be thinking - Aren’t there other places where you can earn more than 5% on your money? Absolutely. But, every single one of them carries infinitely more risk than the guaranteed ROI of repaying a loan.

Don’t leave the game with nothing to show for it. Get to debt free.

Create a Transition Runway

Most athletes don’t have the luxury of choosing when they hang ‘em up. And even if you do, unless you’ve been extremely successful financially, chances are you’ll go pro in something other than sports after your playing days are done. So, if you want flexibility in your career options, build a transition runway.

A Transition Runway is a sum of money you set aside to fund your lifestyle while you look for that next thing after the final whistle.

The longer runway you build, the longer you can stay out of desperation mode.

You Need To Buy Time

If you’re married with kids and a mortgage and you don’t have any cash in the bank, then you’re going to feel a lot more pressure to take the first earning opportunity that you’re presented with even if it’s not in an industry that you’re passionate about.

Unfortunately, this is the case for a lot of people when they find themselves out of work. They can’t afford the luxury of waiting to do what they want to do, so they have to do what they have to do.

If you’re able to get debt free, the next area of focus should be building that transition runway.

Having cash on hand to cover your cost of living while you job search will relieve you of the pressure to jump at the first job offer you get. You might not be able to retire on your runway, but it will buy you time to wait for the right opportunity.

Nurture a Massive Network

While you’re playing people will pick up your phone calls. Use that to your advantage.

If you’re one of the chosen few who can say “I play for That Team”, leverage that logo to open doors and start as many conversations as possible. Eventually, that cache will be empty and you can’t pull those cards.

Become A Connector

Keep in mind, you can only open doors with this strategy. Walking through them - that’s a whole different story.

If you want to build real relationships you are going to have to approach every person you meet with a genuine curiosity and a desire to add value to their life and their ambitions.

Networking isn’t about asking people for handouts. Actually, it’s quite the opposite. Networking is about making yourself available, giving your time and energy to others, and earning the right to ask for another connection in the future.

The most plugged-in person you know didn’t find themselves surrounded by great people by chance. Networks are built by supporting, granting access, giving advice, sharing opportunities, investing energy, listening, and celebrating.

Every time you enter a room, make sure you shake a hand and make an impression.

Eventually, you might meet someone who can help you get to where you want to go… and you might just help someone else get where they want to go in the process.

Collect Assets

Many of the highest-earning athletes are just well-paid employees. Without ownership, your ability to influence or protect your earning power is limited. Far too many athletes pin their financial future to a single source of income.

Not safe.

Real estate and stocks can help professional and highly-paid collegiate athletes build wealth, generate passive income, and prepare for retirement.

Assets allow athletes to de-risk their financial future, diversify their sources of cash flow, and dramatically increase their chances of achieving long-term financial success.

Real Estate & Stocks

When bought intelligently, real estate is a 5-point asset.

Mortgages give you leverage. (i.e. you can control a $100,000 asset with only $20,000 invested.)
Debt paydown. (Renters pay your mortgage.)
Cash flow. (After paying principal, interest, taxes, and insurance, you can save the rent money that comes in.)
Appreciation. (Property values can go up over time in certain areas.)
Tax benefits. (Real estate owners can take advantage of many business and RE-specific tax codes to save money.)

Once upon a time, I wrote an article about making money in real estate.

Stocks are also cool because you don’t need a mortgage to buy them. In fact, there are ways to buy fractional shares of stock now. So, you can literally start investing with $1.

Most people who lose money in stocks make the mistake of trying to grow their money too fast. They’re impatient. As a result, they end up losing their money faster than they made it.

If you want to gamble, play poker. Don’t waste your damn money.

Instead, treat it for what it is - the monetary representation of your time and effort. Financial strength takes time to develop. Be patient. Give your money time to grow.

If you’re going to work hard for your money, make sure your money is working hard for you. Put it to work. Invest.

Start a Business

Starting a business is the best way for professional athletes to remonetize the skills they’ve gained on their path to becoming a pro.

Aside from the additional income, owning the right business can help athletes build their personal brand, create post-career opportunities, and help them make a positive impact on their community.

With the right approach, a business venture can be a fulfilling and lucrative endeavor for professional athletes.

Cash In On Your Passion

During my second year in the Candian Football League, I started a youth mentorship academy called Overtime Football with another pro player from my hometown. (What up, Mike!)

We productized our personal experiences as high school and collegiate athletes and provided young student-athletes with a blueprint to go from playing for fun to playing for a living.

We leveraged our networks to find volunteers, employees, and customers. We met new people who introduced us to new opportunities. All along the way, we were learning skills that each of us would eventually parlay into other ventures.

My partner went on to open a successful business in the health and beauty industry while I used my unique blend of career capital to break into the pro sports industry as an operator on the commercial side of a pro sports franchise.

I don’t share these examples to brag. The point I want to make is more grave than that.

The longer you play pro sports, the further behind you can fall relative to your peers who left school and dove straight into their careers. If you don’t want to have a fast food restaurant as the only experience on your resume after a seven-year pro career, then starting a business and bootstrapping your own professional track record can be the best move of your career.

- CS

The Money Game - How Athletes Can Play It Smart With Their Money