NBA star Jayson Tatum is giving us a great example of what to do with our money. Save it.
Ever since he started dribbling a basketball, Tatum knew what he wanted to do with his life. But even way back then, did he know how lucrative it could be to be a professional ballplayer in America? Probably not, but we’re sure he enjoyed the idea once he realized.
But now, we’re hearing about how he has handled the financial side of being a well-known and successful basketball player. And honestly, he might be handling his finances better than some of us!
According to CNBC, Jayson Tatum has been saving his money since he got picked by the Boston Celtics in 2017 after a single season with Duke University. Since signing that 30.1 million dollar contract after the 2017 NBA draft, to be distributed over four years, Tatum has saved every penny he’s received from his athletic career.
But then, how does he live? Well, he doesn’t use the money he gets from the Boston Celtics directly. Instead, he uses money he gets from his basketball career indirectly. Specifically, his living expenses are covered by endorsement deals with companies like Gatorade, Imo’s Pizza, and Honey Dew Donuts. And honestly, this is such a smart idea.
Save For The Future
Why is Jayson Tatum doing this? Because he’s smart enough to know that tomorrow isn’t a guarantee.
“When I picked my agent, I told him I want to do as much off-the-court stuff as I can,” Tatum told the Boston Globe. “Right now I’m young, so I try to do everything as much as possible … Tomorrow is not promised. You’re not promised the next contract. You want to save all the money you can.”
One of the most important financial decisions one can make is to save for the future. Save for a rainy day, save for a random accident, save for a random expense like a broken down car, save for when you lose a job, and save for your family’s future. Jason Tatum has gotten this lesson locked down tight. He’s saving every penny he receives from the Boston Celtics because he doesn’t know if that contract will be the end of his professional basketball career. He could end up like Jeremy Lin who saw the end of his NBA career at a young age.
So learn from Jayson Tatum’s example. Save as much as possible. Of course, give yourself some room to splurge and spend. Life is short and you don’t want to waste it all saving. Buy a shirt or a dinner every now and then. But don’t ALWAYS save for the future. You don’t want to be caught out in the rain.
But how do you do this? Well, you first have to look at your monthly income. Take one-third of that and apply it to your rent. You SHOULD NOT be spending more than that on rent. Next, work on other necessary expenses like groceries, transportation for getting to work (gas or public transport fare). Then move onto other expenses like debt, insurance, tuition, etc. Finally, and hopefully, you should have some small amount for yourself. This is where you spend that clothing or dinner money.
Otherwise, it's just about having drive and a strong will. That part can be hard but look toward Jayson Tatum as an example. Yes, he has loads more than us, but the basic principle is the same. Save, save, and save. And watch your fortune grow.